I find the results depressing. Again shareholders receive the minimum amount of information (no additional presentation) I also find some of the narrative contradictory. We are continually told the majority of earnings happen in the second half and what an advantage WBA has in supplying northern markets out of season. Yet the first 6 months show:
- sales up 150% from $2.9M to $7.3M. Somehow WBA managed to lose 600% more going from $67k loss to a $412k loss. We are not told why this happened. The same prior period had sales going up 185% and the loss reducing by 95% which is what one would expect.
- NTA plummets yet again, after yet another share issue, from 80c to 69c
- more money spent(my read wasted) on onions when margins are 'small', 'potential yields down' and market conditions 'challenging'. WBA always seems to be playing catchup with onions
- walnut pricing is only 'satisfactory' and margin is 'small'. Quality may only be 'average'. Hardly a promising outlook for the second half although, in spite of this and the first half's increased loss, the Chairman 'anticipates an improved NPBT for FY13'
- we now have a trade debtor who has been given over 12 months to pay $2.2M. As expected no explanation given for this highly unusual occurrence. Is this going to turn into a bad or doubtful debt?
Aside from the above we are told WBA has bought more land. No detail apart from cost - no detail about how this will benefit shareholders etc we must take it all on trust.
Finally why does it take WBA 2 months to pay the dividend when most others pay with a month?
Just same old same old from WBA and its just not good enough.
WBA Price at posting:
63.0¢ Sentiment: Sell Disclosure: Held
