Ann: Half Yearly Report and Accounts , page-2

I thought it was a good result for the half year eps up 24% revenues up 14% op cash flow up 85% equity up 10%, and I have ROC at about 25% and earnings yield at around 14% here. The balance sheet is strong in my view debt would be completely paid of with 4 years in my view if needed. Market Cap is $31M and $5M in cash. Trailing PE is 12 and my forward PE is 9 over the last 3 years the eps growth has averaged 11%pa revenue growth 28%pa equity has increased at about 23%pa but you have to keep in mind this has all happened despite paying a decent dividend currently around 6%. The eps is accelerating and it has had a steady operating margin over the last 3 years. There was only 2% share dilution last year. Cash flow is strong. On the qualitative side of things AKG has been listed for approx 35 years (formerly Garretts) and operates 10 separately licensed schools in VIC + NSW and has taught tens of thousands of international students from 116 different countries. The thing about getting licenses for schools is it is very hard and slow process so the school licenses end up being very valuable and create a strong barrier to entry. They acquired a fastener business recently, which is bizarre to say the least because it's so different from their core competencies. None the less the fastener business earnings dropped 24% last year while the education part increased 34% luckily for us shareholders this fastener business only represents about 5% of the total group. I will call up the boss to find out more.