Ann: VALMEC REPORTS STRONG HY18 REVENUE AND EARNINGS GROWTH, page-7

If you just double revenue for the full year to $100m and slightly increase the margin and reduce interest costs as in the guidance, then VMX earns 4 cps on the average number of shares on issue for the full year (I used 103 million). That is a PE of 9.

That is a very conservative base given the order book of $83 million (though not it is clear how much of this will be in 2017-18) and the APTS takeover. APTS has had historical revenue of $20 m pa, but it is not clear what orders APTS currently has, or whether there will be any one off integration costs. If you assume VMX revenue of $110 million in 2017-18 then earnings rise to 5 cps and the PE is just over 7. That would make the shares still cheap.

Hopefully VMX will provide a guide to the current order book (including APTS) when new orders are next announced. It would help if they told us what orders will be delivered in 2017-18 and in future years, if they are not going to give any profit guidance for 2017-18. Otherwise we will not really know how the company is travelling until the annual results.