results for fy12, page-6

A few days but but what a cracker!!! Just what i had hoped-for. Strong growth across rev (up 60%!), EBITDA, EBIT and NPAT grew by 52.2%. Despite massive increase in CAPEX, strong AUD, rising labour costs, margins have effectively been maintained at over 23%. Operating cashflow reduced due to capex but CR ensured low debt at only 12.7%. Also confirmation the Brandrill aquisition (which i urger ASL to make 2 yrs ago) has proved a great success.

The important thing is that ASL is able to increase BOTH rig utilisation rate and profits on each drill rig contracted out. This is a multiple effect and should not be under-estimated.

The only downside (in short term) is that due to CR the EPS has not risen as fast as other metrics. EPS up 14.4% to 23.7c. Final div up only half-cent to 6.5c ffr.

But oulook is positive. Company forecast rev to rise 20% and hit 1 Billion mark. I expect no more CR and as new acquisitions rapidly produce income (esp mineral analytical labs) that EPS will rise 20% in FY12. Am expecting total divs in FY12 of 14.5c (6.5+8). Assuming I'm right what PE does one apply to a company able to grow earnings at this rate?