Is this an undervalued stock?, page-61

That is an absolutely stellar report!

Ignore the percentage decrease in revenues - the down turn in construction services is well known. What's important is they've managed it beatifully. 8% net profit margin on a still significant revenue of $69 million is safer then 4% margin on the higher revenue last year. The worry was that the decrease in work would result in losses, which they haven't even come close to. And EBITDA is around 20%, so pretty solid. All borrowings repaid, so it's significantly derisked in that respect, and they still have $13 million cash at bank.

Earnings per share of 0.9 cents and net assets of $19 million says it all. A PE of 5 is more than fair, with a reasonable chance of 10 on a sniff of an upturn in the sector (which there are some signs of). That works out to 4.5 -9.0 cents per share.

Tomorrow could be exciting...