Ann: CGL Dec 2015 Half-Year Results Media Release, page-4

I sold my modest holding a couple of weeks ago as I don't like holding expensive stocks in market turbulence.

However on reviewing the result I don't think it's as expensive as it may seem on first glance. The reported NPAT is being sandbagged by a couple of items. There is a pre-tax 'Discount unwinding expense' of $1.55m being expensed under finance costs. This is a non cash bs accounting expense as components of the consideration payable for the PJA acquisition are deferred and they must be discounted back. It will end in Sept 2017.

I estimate there is also around $1.5m of amortisation relating to 'Business process, software and product development' intangibles that came about through the acquisition of PJA. Unless I can see a similar amount of spending being capitalised on an ongoing basis I tend to add back the amortisation of intangibles acquired on acquisition.

Conservatively on a post tax basis I reckon we could add around $2m NPAT to the result for an underlying NPAT of around $7.6m, a 35% boost