report, page-11

I do not hold, but have been following ASZ for a while.
The half yearly did not inspire me for the following reasons.

1. profit before tax was less than dec 10 (like for like comparison) (i.e when the one off of $1.279m was removed).
2. they nearly ran out of cash. (for a market cap of $130m, to only have $351,000 in the bank at the end of Dec is cutting it a little fine, esp when wages are running at approx $2m per week).
3. 62% of total assets are intangibles - have they been "stress tested" and "marked to market". i.e. could the $197m of assets actually be realised if the company was wound up? I have my doubts.
4. debt is running at 30% of debt plus equity. ASZ will need to yet again borrow to pay for the aquisitions and they do not seem to have the cash flow to pay the debt off and maintain the divi. Come the final payment of the aquisitions, will the bal sheet become a little stressed?
5. words like "solid pipeline of qualified opportunities" sounds like management "gobbledygook" to me.
6. They have lost out twice on the $100m + tenders. Are they going to have to destroy their current excellent ebitda margin to win one and if so, do they "win the battle - but lose the war"?

I do not have the answers to these questions, and I am telling it as I see it. If I am reading it wrong, I would really appreciate being set right.

HT1