Has SKL turned the corner?
1H10 looks a bit more upbeat then previous announcements.
- Net debt reduced to $34m from over $100m a year ago.
- Resumption of dividends.
- Profit upgrade from $7.1m to $8.5m.
- Operating cashflow up.
The company forecasts FY net profit to 30 June 2010 of $8.5m ($9.5 if you exclude the one-off currency expense/loss).
EPS = $8.5/188.4m shares = 4.5c
PE = 52c/4.5c = 11.5x
I notice in the presentation that the company is forecasting net profit for the y/e 30 June 2011 of approx $14m.
EPS = $14m/188.4m shares = 7.4c
PE = 52c/7.4c = 7.0x
Expecting to see a marked improvement in profitability...
Always good to keep an eye out for the quarterly newsletter.
Don Stewart is always the key read - sounding positive that trading has been above expectation, January sales kicked off well and reiterating the forecast of a return to "normal profit levels" for 2011.
The profile on Tumedei also forecasts a 30% increase in sales budget for next year.
Though a vote of appreciation from the owner of a pair of gumboots that were purchased in 1968 (and only just began leaking) may suggest that repeat purchases are less common than investors might like :eek2: