Movement at the station for the word had got around, page-17

Thoughts ahead of AGM tomorrow - not sure whether will get much of an update on how things going, EVZ historically haven't given much price sensitive news or forward guidance at the AGM, however usually you can read between the lines to get an idea of progress.

Been interesting watching price go up over past month (albeit on low volume). As I've posted here before - FY18 is the key year for EVZ, and while it still carries significant risk and uncertainty there are a number of stars which could potentially align to create a turning point:

1. Will start to see the full impact of the debt forgiveness of 7.2mm including lower debt servicing costs. As baseline, interest was 1.2mm in FY17.

2. Will see significant reduction in tax expense of 1.8mm in FY17 which was predominantly due to the above forgiveness.

3. Brockman moved premises (although was finished in FY16) - with commentary this would create increases efficiencies and capacity

4. Comments on outlook in Annual Report encouraging:
- Brockman: 'significant tender pipeline and increase in secured contracts'
- Syfon: 'Experiencing significantly strong outlook underpinned by near record levels of contracted work'

5. Geographic expansion - indicated Syfon moving into Vietnam and other Asian countries

6. New CFO on board. Ian Luck became director recently - and has been buying up (now holds 4.3 million shares - with purchases as recently as October 24). I note Ian could have some significant contacts from other business interests / directorships - Leighton Contractors, McConnell Dowell.

If everything comes together - opportunity for significant re-rating / de-risking here, if not EVZ will continue to stay in my bottom drawer.

The biggest thing for me is that in FY18 - need to see positive cash flow (and increased cash balance), positive EBIT, and continuing encouraging comments regarding outlook.