Pedantic point but I think the movement from current to non-current liabilities merely reflects the fact the loan has been rolled over.
The improved terms are reflected in the lower total interest repayments.
They generated about 400K FCF before interest and costs of finance this half. Even if debt doesn't keep dropping we are looking at an FCF yield in the order of 10% at the moment (ex-growth).
My initial thoughts are:
- excellent growth in lighting >20% (and solar lighting 319%!)
- clearly a buildup in work- higher work in hand and buildup in inventories
- some increase in payables and reduction in receivables--> need to watch
- balance sheet looks very good now- debt looks eminently serviceable.
If growth can actually be achieved (I think highly probable in the next half)- then we are in for a multiple re-rating.
SRH Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
(20min delay)