Guidance indicates a very strong FY10 second half NPAT of 31 - 37 million which will be a record half for IDL (by quite a margin). Below are the NPAT for FY09 together with forecast NPAT for FY10.
FY09 1st Half - 24.7m FY09 2nd Half - 21.7m (include loss of Handlebar Hill contract) FY10 1st Half - 17.2 - 17.8m FY10 2nd Half - 31 - 37m
It is difficult to quantify forward PE ratios etc as this depends on how many new contracts are secured, growth in China etc. However based on today's announcement and expectations for this year it appears IDL are extremely well placed to continue double digit growth into FY11.
An increase in the interim dividend (which may be announced with 1st half results) and the forecasts for FY11 when released later this year should provide a solid foundation for the share price to appreciate.
IDL Price at posting:
43.5¢ Sentiment: Hold Disclosure: Held
