JUM unknown

the profit upgrade announcement

  1. 983 Posts.
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    Back in September of last year JUM provided us with
    some information in their Preliminary Annual Report, in the report JUM stated the following :

    12 month Trading Basis
    During FY05, TMS traded 11 months as a separate private company and 1 month as a fully owned subsidiary of Jumbo Corp. The combined Jumbo and TMS business on a 12 month trading basis would have resulted in a FY05 EBITDA of $1.8 million and FY05 profit of $1.5 million.

    Based on those numbers and considering that in the last six months they have had a great run with jackpots then their recent "profit upgrade announcement" seems cosiderably lower than what I was expecting .

    The Profit Upgrade announcement highlighted a 60% to 100% increase in the Company's NPAT and a 100% to 140% increase in EBITDA based on unaudited management accounts for the 6 months to 31 December 2005 when compared to the 6months t0 31st December 2004. However, the 2004 results did not include any contribution from their recent TMS acquisition which was completed in May 2005 - You would hope that for the sum of 4mil in cash and shares for the TMS acquisition, resulting in a $2mil debt and additional dilution, that they would be able to announce major increases in profits over those achieved prior to the acquisition.

    Cheers,
    Manassa
 
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