Originally Posted by
Lizard
I only just got around to looking through the FY result and agm speech. At $3.5m NPAT, they were probably a little over $4m NPAT normalised for acquisition timing. Synergies might have been better than suggested, since the agm speech says second half for both companies showed an improvement of $1.36m over prior. Although tax wasn't quite normal and there is a bit of interest income from the extra cash sitting there.
I thought it looked interesting, though there is a fair bit of goodwill in the assets buried in the equity accounted value of group investments. Means ROIC is only okay-ish. Seems to me this is a difficult business to expand organically with expansion probably driven by acquisition and somewhat capped by the size of NZ (still a bit of room to go though), so acquisition price becomes critical. Overall looked to be fairly well run and I'd still see as reasonable value at current price (37cps).