A straw hat in winter, possibly..., page-16

The VRT result was, IMO, quite mixed.

The BAD
1. Loss of market share of 1.8% and from the presentation, appears to have lost share for 4 years
2. Revenue down and costs up gave a poor profit result
3. Had to "borrow" cash to pay dividend. i.e. - cash flow was not enough to pay CAPEX and dividends.
4. page 22 of the presentation reported net capex which is quite misleading, it paints a picture of positve cash flow which, IMO, is wrong.

The GOOD
1. Dignostics had a great year with a 37% improvement in EBITDA
2. Diversification of revenue is providing some buffer to the business
3. Have taken steps to arrest market share decline - particularly in Vic.
4. Plan for cost savings of $5m in FY18 is excellent news.

The Ugly
1. The balance sheet has 84% of the assets as intangibles.

HT1