reported after market, page-5

An interesting comment:

"EPS increased 40% on pcp as you have to adjust for the additional shares that were added to acquired the new businesses (and earnings)."

When you buy a new business with shares you do have to include those shares in the calculation of earnings per share when you use the combined earnings. The eps dropped from 7.5 cents to 5.8 cents a drop of 22%.

As well the operating cashflow dopped as a % of revenue - the overall business had lower margins. Yet you claim that margins improved over all the business units.

To that combination the answer must be that AVV overpaid for the new business [in shares]. The lower margins on the new business input cost has pulled down the overall AVV margins.

If you believe that AVV will earn the projected 40:60 split you are [as Stolwyk has pointed out] paying around 18 times earnings.

Fully priced - well it is not cheap.