I remember being very impressed in the second half of FY12 when Dicker's PBT reached $7m in the half. They appear capable of getting close to that figure in their weaker quarters now. That's pretty big progress in 2.5 years, considering they have had virtually no fresh equity capital (save some DRP shares) yet.
When the Express is fully bedded down (and I get the impression there's still a little indegestion), given the amortisation of intangibles, Dicker appear capable of flowing in excess of $30m per annum of cash.
With the recent bond offering abrogating the need to raise capital in the near term, current shareholders are winners as it enables the business combination to settle and show its merits before any fresh capital is used to pay for it. In simple terms, it means when we are finally diluted , it is likely to be at higher prices...
The April-June quarter is the best quarter by a good margin, something in the order of 40% higher than the average of the other 3 quarters on a revenue basis. Revenue for this quarter last year was about $320m, immediately after the business combination, it will be interesting to see how the first full comparable quarter goes. I am hoping to see revenues closer to $335m, and the NPAT margin starting to work back to historic highs - Eternalgrowth
DDR Price at posting:
$1.73 Sentiment: Buy Disclosure: Held
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