By my read, they traded 5 mill of half yearly profit (7 mill to 2 mil) for 8 mill increase in assets (36 mill to 44 mill). Oddly, the less tax they paid was gobbled up by interest on their new debt (tax less 1.3 mill, new interest 1 mill extra paid). Half year EPS of 2.62 cents seems quite ok on a 70 cent share. But not extravagant. The company is only worth a punt if you believe the long term story. I do. But it is going to be a glacial moving company. (that is what I expected)
Finally, they really should have a heart and declare a div. 1 cent franked every 6 months seems about right (since they SAY they have plenty of money available to funds to BOO builds, and they SAY on BOO practical completion, THEN the build debt is repaid quickly)
Anyway, this report is boring as heck. But it looks ok. The next 6th monthly may be much more telling as to the year by year operational profit. On an earnings per share of 5 cents (for the full year) for a PE of 14 of so, it may not be worth risk. But it must be a growth story - it looks OK. And imagine the depreciation that will start applying to the BOO stuff.
ZEN Price at posting:
76.0¢ Sentiment: Hold Disclosure: Held
