All things considered, a reasonable update. I was most concerned...

All things considered, a reasonable update.

I was most concerned around debt however it looks like it's generated solid cashflow in a few months.

ND at 31/12 was $53m and currently sitting at $59m (ND/EBITDA of 2.7x on $22m EBITDA) after paying $17m in contingent consideration suggests ~$11m in cashflow.

Current facility of $80m and 3.5x EBITDA suggest there's around $20m headroom to more than soak up a fine from the TEC which I estimate to be around $10m.

Add to this, if mgt can achieve the full $8m in cost savings over the $5m factored in this year would have EBITDA growing >10% from $22m in FY16 to $25m in FY17.