Ann: Half Year Report - ASX Release, page-3

"Not exactly earth shattering."

Actually, I thought the result was very strong, with EBITDA almost trebling on pcp, and a swing in EBIT to a $2.4m profit, from a $4.5m loss.

The cash flow was soggy, but an investment in working capital is to be expected whenever there is a 27% jump in Revenue.

The issue for me is that that the same old movie is going to play itself out: the one called "Profitless Prosperity" when future increased profits are reinvested into the purchasing of new cranes to service increasing demand, until the boom stops and then the company then has idle assets generating no operating cash flows.

Meaning that shareholders not only don't see any cash coming back to them at the bottom of the cycle when times are tough, but they also don't see any when the cycle recovers and peaks.

Slide 7, headed "Capital Plan to Deliver Continued Growth", in which increased expenditure on new cranes is declared, confirms my reservations about what an inferior business this is.