Originally Posted by
iceman
Yes it is a good result from an extremely challenging year for SEK management with the fire at Oakside and enormous effort spent on insurance claims.
With that now largely out of the way we can look forward to a more normal year ahead. 2016 should see a large growth in revenue and profit with Seeka Australia coming on line with estimated revenue of $17m and EBIDTA of $ 3.2 - 4.0M instead of the over $1m loss contributed in 2015 (due to timing of purchase).
This will easily offset the increase in interest expenses as a result of the new loans (only 3.95% interest rate) to fund the purchase of that business.
An interesting statement in the commentary is their clear aspiration to increase market cap to $200m, which is more than triple current market cap. A lofty goal which shows management's great optimism for the business.
I would not be surprised to see a doubling of EPS and a healthy increase in dividend in 2016, if we have a good crop and no unforeseen negative issues.
Happy holder