I believe ASL's result is the best surprise result so far in this reporting season.
It's a pretty illiquid share so its price moves well on good news and last night's result was very good news:
* eps of 6.8c for the half * cashflow per share double the profit * working capital debt reduced to zero * 2c div (75%franked) * nta of 58c * profit margin and roe up to around 10% * about $10m cash
They forecast the next half will be just as good, putting them on a p/e of around 4. Next half they will benefit hugely from a currency hedge set at 56c.
Ausdrill is a successful turnaround business serving a hot sector: gold and base metals. After their near-death experience, management is now frugal and determined to control borrowing and stay within their core area of expertise.
Cheers, Anne
ASL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
