water tanks to the rescue..., page-5

Ferret

The $10-$14mio number is not NPAT, rather EBIT.

If one allows for the interest cost of about $60mio of debt and another $20mio of convertible notes on issue at say an average of 9%, the total interest cost is going to be around $7.0mio-$7.5mio.

Management has confirmed results will be at the lower end of the forecast range, so assume $11.5mio. Take away $7.5mio interest cost and you are left with just $4.0mio

(The above numbers are obviously very "rough".)

But, just assuming the $4mio ended up being the NPAT number then that translates to an eps of about 10c - and put NLX on a pe of close to 15x.

In my view a bit expensive for a company that has consistently failed to deliver on promises for several years.