Underlying NPAT increased from $18.8m to $23.2m Stat NPAT (continuing operations) increased from a loss of $17.4m to a profit of $7.4m
Net operating cash flow improved from negative $3.9m to positive $11m.
This resulted in net debt dropping from $33.1m to $23.2m.
Importantly underlying NPAT of $23.2m stacks nicely against the equity base of $177m (ie a RoE of 13%)
Given a RoE above 10%, so long as RFG can maintain a profit over $23.4m (excluding FY22 for which the 1H will still be negatively impacted by the national lockdowns), then the market should comfortably price the shares above its equity value. Any share price below RFG equity value could be perceived as being 'good value'.
RFG Price at posting:
7.3¢ Sentiment: None Disclosure: Held
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