Thanks pCap , just to round off our valuation metrics discussion...

Thanks pCap , just to round off our valuation metrics discussion I went back to both previous takeovers and our Boards Target Statements to find out what our directors approved as being a fair and reasonable price ,for what reasons and under what valuation metric. The July 17 valuation paper is worthy of a read given the outcome of the recommended valuation metric.

In summary without going into reasons the valuation metrics recomended were - :

1. July 17 Takeover- metric 4.75 times EBITDA which included a premium for control.
2. October 15 Takeover- metric 8.1 times EBIT.

Based on the above metrics and using a forecast $16m EBITDA & EBIT $8.5m for 2018/19 :
1. $76m or 55cps
2.$69m or 50cps

On current underlying EBITDA $13m - EBIT $5.5m = $60m-/45cps & $45m /33cps

Mid Point on $13m & $16m EBITDA = $69m/50cps
Mid Point on $8.5m & $5.5m EBIT = $57m/42cps

Longer term earnings outlook back to say $21m EBITDA = $100m/ 73cps
$13.5m EBIT = $109m /80cps

Confirms as we expected that our current price does not reflect fair value- & that it would be a definate oportune time for our biggest shareholder to try their next move.

Interesting times ahead.

cheers Andrew