Ann: Half Year Financial Report and Full Year Gui, page-11

re: Ann: Half Year Financial Report and Full ... As another indicator of the potential underlying value here.

VEI, in its previous life was VGH, once hit $5 per share on revenue of over $110m and EBITDA of around $30m. Importantly, VEI has emerged from the hole with its capital structure largely intact. In fact almost untouched, which is a great win for management.

Revenue is still around $110m pa so the fear that revenue, margins and profits will shrink as doctors etc fled a sinking ship previously were overblown. Importantly everything appears to have stabilised, the banks are on board and see more than enough cash flow to service debt and Primary are on board now as well and confident enough to ramp up their stake. EBIT Margins are now being upgraded and are a healthy 24%. Profit is up.

If reports were that Primary were interested in making a bid for VGH previously, when VGH was in its death throes, I imagine the internal boffins at Primary now have a much easier job to convince their Board that VEI is worth a shot now.