By my estimates based on the AGM update SRV is looking at a step change in revenue from $208m to about $240m @ 15%.
Mature floor earnings should be $50m+
Immature floor loses will probably halve to about $7-8m
This equates to NPBT of about $42m and a NPAT of about $32m (33cps) and free cash flow up near $50m.
Take away the lazy $100m in cash on balance sheet and the market values this business at only $300m.
In 6 months or less the SRV share price will start with a 5.
Management should probably consider returning half the cash to shareholders as it has been sitting idle on the books for years now and is not needed anymore considering the company is now in full growth mode.
SRV Price at posting:
$4.00 Sentiment: Buy Disclosure: Held
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