npat 16.7 mill, pe under 5!! 5% final div

As per the subject, great turn around result released today by VMG. Market cap of just 80 million, momentum set to continue with $300 million of work in hand and "tendering activity high in WA and QLD". Net debt smashed to about 18 mill thanks to 35 mill raising and cash flow.

Had a very tough 2009, with a loss of 105 mill. Got rid of the old MD mid last year and appointed a new CEO in Feb, that combined with the restructuring (simplification) of the business in the first half, has obviously had a positive impact (1st half NPAT 5 mill). The only slight concern is the consulting division still incurring a loss (2.6 mill) but this we are told returned to profitability in the 2nd half.

Worth noting a few mill, one off restructuring costs also impacted the npat.

Management demonstrated their confidence with a 2 cent div (first in years, to be paid in Oct), who obviously believe the momentum, particularly from the 2nd half, will continue.

Tight margins, but blue chips clients inc. BHP and RIO. Great value at current price. Buy imo. Hopefully the seller at 39 finishes soon.