Ebos Limited EBO

[karen1]

Percy, thank you for the confidence boost. I guess it took a while for the market to "wake up" again after the break, given I posted on 5th January. I did wonder at the time if I was posting too soon.

If I'm not allowed to keep the L plate, can I just be the eternal newbie?

[percy]

The way analysts think ..... prior to announcement EBO was at about 7 times forecast EBITDA .... they say Masterpet will add another $20m EBITDA .... 7 times that is nearly $3 a share .... so shareprice heading to $9 when things become more official and the results start coming through .... pretty logical eh

As always you are right on the money winner69.
I had my hopes up for $8 but $9 would be most acceptable.!!!!!!!!!

[percy]

Steady result out to-day.No surprises there.! 13.5cents per share fully imputated divie, always nice.What I was looking for was the outlook statement.Very positive,so I am happy.Divie reinvestment not avaliable with this divie.

[winner69]

Percy ... yep a solid enough result

One of the missing numbers out the Masterpet acquisition ann was how much Masterpet they were to take on .... remember it was $100m odd PLUS Masterpet debt

That number was $30m and along with the extra borrowings to fund the purchase I note that debt is now $145m - $88m more than last June

So to justify this they need to make at least $15m EBIT from Masterpet .... might be a bit of a stretch if they say EBITDA is $20m .... fail to get this implies acquisition not really value accretive .... wonder what analysts will say about this

Masterpet is a good business .... hope EBO make a go of it and the likes of Percy will still be happy .... check back in a years time

[percy]

Percy ... yep a solid enough result


So to justify this they need to make at least $15m EBIT from Masterpet .... might be a bit of a stretch if they say EBITDA is $20m .... fail to get this implies acquisition not really value accretive .... wonder what analysts will say about this

Masterpet is a good business .... hope EBO make a go of it and the likes of Percy will still be happy .... check back in a years time

Would appear EBO have made a fair purchase of Masterpet.It is interesting to note in EBO announcement today in "out look" that they intend to make further aquisitions in both EBO and Masterpet.Should they be able to add to Masterpet as they have done with EBO,Masterpet will go from a fair buy to an excellent buy.At this stage I have no reason to believe that their over 20 year record of successful aquisitions should come to an end.What I have been looking forward to is further expansion in Aussie.I did note that they said they were doing well with their "new' Perth branch.
Plenty for analysts to ponder,and shareholders to look forward to.

[macduffy]

So to justify this they need to make at least $15m EBIT from Masterpet .... might be a bit of a stretch if they say EBITDA is $20m .... fail to get this implies acquisition not really value accretive .... wonder what analysts will say about this

Was this their expected EBITDA number at the time of the acquisition?

[winner69]

Was this their expected EBITDA number at the time of the acquisition?

This what they said ehrn they announced the purchase -

EBOS has always set exacting criteria in our pursuit of growth either organic or acquired. We expect Masterpet will contribute very positively to the enlarged group and add to our growth in earnings per share.”
EBOS is projecting a revenue contribution of ~NZ$170m and EBITDA of ~NZ$20m in first full year to 30 June 2013. These earnings projections are inclusive of the Masterpet half-share of Animates, if consolidated

[macduffy]

Thanks, winner.

Let's hope that they got a friendly rate on that bank loan!

[percy]

Thanks, winner.

Let's hope that they got a friendly rate on that bank loan!

Must have as headline in today's The press;Ebos looking to buy-again.
Waller said that in terms of potential acquisitions ,the group was prepared to spend up to $100m on a human healthcare sector acquisition,-"if the right opportunity came along".
Ebos was in a preliminary investigation on one possible purchase,and would also like to investigate three or four Australian animal health opportunities as discussed in its board meeting yesterday.
"This market segment is growing internationally [and] the Masterpet acquisition will be a significant profit driver going forward." Waller said.

[Pibroch]

Can anyone shed some light on why ebos' sp is going down so rapidly today?