Looking at the latest results announcement.The forecastEBITA of...

Looking at the latest results announcement.The forecast
EBITA of $31 million FY 2008 places FUN at a forecast Ratio of only 2.Looking at the full year forecast indicates that FUN is undervalued

�� Net bank debt is forecast to fall to less than $55m, including the $13m
contribution from the sale of Publishing.
�� Of the targeted $4m cost saving for FY2008, $3m has been included in
the FY2008 budget.
�� Amortisation is forecast to fall from $3.6m (post tax) in FY2007 to
approximately $1.7m (post tax) in FY2008
�� Gross margin initiatives including inventory reduction are forecast to
improve margins
�� We have not forecast any contribution from Judius USA
�� The full impact on earnings of our turnaround strategy will be
predominately felt in the second half of FY2008, as our first half results
will be impacted by consultancy fees, restructuring costs and increased
marketing expenditure.
�� Macro economic forces such as interest rate increases may have a
detrimental impact on consumer sentiment
�� Potential increased costs from China could cancel out potential benefits of
the strong $A
Considering all of the above we provide the following guidance for FY2008: -
EBITA $31 to $33 million
NPAT $13.7 to $15.1 million
Guidance excludes the one off $5.5m profit contribution from the sale of
Publishing.