Ann: Appendix 4D and Half Yearly Report, page-12

There are a few more things I like about the way GXL is going:

* GXL is able to reinvest about half of its profits in expanding in-store clinics and services, specialist and emergency clinics etc, with a ROIC of > 25% on maturity. It is able to do this without any additional borrowings.

* This ensures improving ROE over time, due to the increasing weighting of higher margin services.

* As OCF increases with growth, debt and gearing should gradually decrease.

* As capital expenditure on clinic and services expansion becomes a lower percentage of total NPAT, as NPAT grows, the dividend payout ratio should gradually increase.

* I also like that GXL is able to reduce its retail margins without greatly impacting overall profit growth. This is helping to improve its competitiveness with online operators.

IMO, worth taking a longer term view.