Rebel1 - According to some data I have, their margins have been:...

Rebel1 -

According to some data I have, their margins have been:

2006A 2007A 2008A 2009A 2010A
EBITDA Margin % -- 14.19 16.02 10.90 4.09
EBIT Margin % -- 9.65 10.48 6.35 -2.78
Net Profit Margin % -- 5.64 6.33 4.12 -2.23
Return on Equity % -- 35.70 19.92 16.20 -4.59
Return on Assets % -- 13.91 11.81 9.77 -1.97

If you exlude FY10 as an "abnormal", then the average net profit margin is around 5.36%. Also, these margins were achieved when WDS carried a much higher debt load (and therefore, interest bill):

Net Debt/Equity % 105.11 114.29 51.03 40.52 14.38

So, should we can get back to some "normality" and management can restore net profit margins, hopefully we see a good "pop".

Also, I haven't checked the balance sheet but I'd presume there might be some tax losses this year that might be available to shelter future years assessable income, which might be icing on the cake.

Apologies if there's a flaw in my logic, I am an "armchair" accontant!