Ann: VALMEC POISED TO EXCEED FY18 PERFORMANCE, page-2

A misleading heading. All they are promising is FY 19 earnings to exceed FY 18 earnings. However, shares on issue have risen from an average of 100 million last year to 124.6 million this year. We earnt only 1 cps in the first half compared with 3.7 cps for the whole of last year. NPAT was only $1.34m in the first half compared with $3.77m for the whole of last year. We would need NPAT to be over $3m in the second half for earnings per share to be just the same as last year. Performance measured by EPS is likely to be worse this year, rather than improve as the heading suggests.

We need more contract wins before we know what will happen in 2020 to EPS. There is also no update on the progress of the contract dispute.

Not surprisingly the market is not impressed. I am afraid we will have to wait for some time for the share price to improve much.