Hi Copydog,
It is an interesting one. Op cashflow looks like it fell to about $6m this half (from $8m in 1H) - so perhaps cash receipts also fell by $2m or about 13%. Still enough leeway to pay the interest, and unlikely to fall below that, but I suspect will still fall further and inhibit ability to pay down debt and/or pay divs.
By my calcs, NTA/share is down to about 34cps. IF the valuation cycle is at the bottom, then current price might be good buying, but will depend on supportive bankers. Then again, the bankers are probably sensible enough to know that their best chance of realising their money is still to stay in. Wouldn't want to see any more falls in valuations though.
Biggest risk is probably if there is a banking covenant around EBIT that the banks decide to enforce. There is not much point trying to divest more property unless it can be done at a premium to valuations.
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