Management taking a conservative approach here and including all...

Management taking a conservative approach here and including all costs and writedowns in the HY15 result.

Positives;
- EBIT loss better than forecast
- Cashflow looks ok
- Hofco trading well
- Rig 3 looks to be fully utilised

Negatives;
- Rig 1,2 and 4 are idle at present
- Still challenging conditions for the RCH business

The current price of the shares is very cheap compared to the potential value of the business if it continues to turn around, but risks still remain. I think 20c more likely than 10c as a target price for the next 3 months. The 15c price of the CR should serve as a solid base as it has done in recent weeks.