Ann: Media Release - AVJennings Delivers Strong Results, page-14

In the last 2 and a half years AVJ operating cash has been negative by $42 million in aggregate and they have paid out $49 million in dividends while debt has risen $73 million. Higher debt has been used to pay dividends as a result. I pointed this out at the AGM in 2016, but nothing has changed since.

That is history. You are hoping things will improve. I am conservative so I prefer to have my money elsewhere.

By way of comparison Morgans forecast Villa World return on equity this year of 14%, net debt to equity of 34% and a price target of $2.94 compared with the current price of $2.42. Bell Potter have AVJ return on equity of 10%, net debt to equity of 44% and a price target of 75cps, which is near the current price. The 3 broker 12 month price target consensus for VLW is $2.94 according to the FT and for AVJ 78cps. I am not recommending VLW just making the comparison.