Looks cactus, page-6

Rambo23

Do you think that NWH can pick up more government WA main road work like Ravensthorpe Heavy Haulage ($20 mil value)? In my opinion, the company has to win alot more government infrastructure work as the Iron ore and Coal prices will be in a bear market for some years yet.

Judging by the plant and equipment they have on their balance sheet, they would need to generate around $600 mil in revenue per year at around a 5% margin. That would lead to:

EBITDA: $30 mil
D&A: $20 mil
EBIT: $10 mil
Interest charges: $3.6 mil (142-76=66 @ 5.5% interest)
Tax: $1.92 mil
NPAT: $4.48 mil
EPS: 1.6 cps

Smaller amounts of revenue would likely lead to a loss but a cash flow positive depending on capital spend.

I believe that the management should be working to win as many government contracts for road and rail across the country and not just in WA and QLD. If the company can transform itself from a mining services contractor to a main roads and rail civil contractor it will not only survive the mining bear market but return to a profitable footing.