Ann: 30 June 2014 FY Investor Presentation, page-2

For me the key question is: will the current and continuing investment in UK operation pay off? and what will they buy with the cash?

Topline is growing yet the next 6 month guidance flat at 1.5m npat, reflecting the continuing spending in expanding the UK team, kingfisher trial, and possibly due to the switching to SPV funding model (long term reducing funding cost but short term pact profit due to accounting ). The december half is usually the higher sale half year, and the mgmt is nothing but bullish in the sales momentum after the new replacement for Infinity. Clearly trunks of expenses are expected to occur in the next 6 months. So will it pay off? with their current track record in UK and the overall very positive consumer environment, I choose to think it will and apply a not so bullish valuation of 8x EV/EBITDA using the mgmt guidance. That point it as a BUY for me at the moment.

but what will they buy with the cash? any thought?