I few minor inconsistencies between accounting treatment of some cost items and receivables, versus report of pcp, coupled with management emphasis and language in some respects (such as with respect to prior revenues from sale of property) leaves one feeling that management is being a little selective and self serving in their language.
My biggest annoyance, however, is that (as was the case this time last year) no OTC revenues have been reported (I have again written to management about this). When one considers that prior to Dec 2015, the OTC numbers were trumpeted with great gusto, this adds to the sense that management are being a little selective in they choose to emphasise.
That said, when one considers the mining downturn that has impacted regional Queensland, and the restraint of recent years with respect to acquisitions, I see this as a creditable result.
Statutory revenues down on pcp but marginally ahead on the 6-month period ending June 2016 (and judging by employee cost comparisons, this is probably also the case for OTC revenues). Similarly EBITDA down on pcp, but marginally ahead on the previous 6 month period. Cash generation continues to be strong, cost control looks good, and the balance sheet is going from strength to strength.
Despite the revenue slow down of the last 5 half-year periods, the trend of earnings and cash flow continues to be good. When things improve in regional Queensland and/or acquisitions become more attractive, I see no reason why we shouldn't continue our high incremental return-on-equity growth trajectory.
Daryl, it's a creditable result, no need for smoke and mirrors!
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