Overall, reported annual results for 2012 were acceptable in the present conditions.
Of particular concern, though, is the continuing poor performance of Viridian.
In relation to capital management, the payment of a fully franked dividend of 7 cents is welcome; as is the on-market buying of shares for the Dividend Reinvestment Plan (DRP).
However, it is concerning that there will be no franking credits with subsequent dividends which management expects ” to continue for some time”.
It is also concerning that the net cash position has reduced over the year from $142.3 million at the start to $55.8 million by the end of the year. This means the company will not be as well prepared to take advantage of any cash (debt-free) acquisition propositions.
I would like to see the company diversify its operations beyond making a narrow range of building products when opportunities arise.
CSR Price at posting:
$1.66 Sentiment: None Disclosure: Held
