I have done a bit or reading on FFF and feel if the proposed placement goes ahead at 3.5 cents and 4 for 5 rights issue at 1 cent FFF will have a great lift in share price. A consolidation then would occur i would think.
FFF posted a net profit after tax of $3.2 million for the financial year ending 30 June 2012. This represents earnings per share of 0.42 cents. Firstfolio’s operating EBITDA1 was $15.2 million, on sales of $104.7 million. Loans under management at year end were stable at $19.9 billion. Features of the result include: Revenue of $104.7 million, up 17.7% on FY11 Operating EBITDA of $15.2 million, down 2.4% on FY11 Net debt2 of $64.3 million, up 20.5% on FY11 NPAT of $3.2 million, down 49.5% on FY11 EPS (diluted) of 0.42 cents, down 50.2% on FY11
So if $50 million raised at 3.5 cents and another $6.2 million at 1 cents total debt will be reduced to about $8 million.
Reduction in debt in turn reduces interest payments that becomes NPAT uplift.
This in my view is a company maker DYOR i think its very cheap at 1.6 cents
FFF Price at posting:
1.6¢ Sentiment: LT Buy Disclosure: Held
