Ann: Presentation, page-11

@ChippyDude,

If you look at this result in detail, you can see they threw the kitchen sink at it in terms of costs and provisions.

They don't need to do very much on either revenues or costs and EBITDA next year will be in excess of $350m. (DH2016 EBITDA was $168m).

And now that all the redundancy and restructuring expenses have been sunk, they don't have to do anything at all on working capital, and Operating Cash Flow in the current half will come in close to $120m.

People don't realise how fast the WOR baalnce sheet will self-repair under steady-state conditions.
Little wonder management categorically ruled out the need for a capital raising.

So, sure, as expected there was the sticker shock of today's result which caused the hot money to sell, but on next year's prospective figures - which assume the unlikely situation of zero improvement in Revenue, the stock is trading on an EV/EBITDA multiple of 7.5x and an equity FCF yield in excess of 8%.

Not at all demanding multiples and a free option on a cyclical recovery, I think.