Profit UP 20% on a Already Good Equivalent Prior Period, page-2

@Michaelirish,

I agree that this announcement will come as somewhat of a relief to shareholders, given the share price travails over the past 9 months, and I think it says something about the resilience of the Revenues and earnings of the business.

Just one word of caution when comparing this latest half-yearly result with pcp: there has been a degree of Revenue spillover into DH2018 from JH2018, as was flagged would be the case at the FY2018 full-year result (and which explained why JH2018's NPAT result - $9.9m - was down 8% (and a pretty substantial 14% at the Pre-Tax Profit level) on JH2017 - $10.8m) [*].

If we look at 12-month-rolling figures, to isolate the JH2018 into DH2018 revenue timing issue, NPAT for the past 12-month period is up 7%'
[(DH2018 = $11.5m + JH18 = $9.9m) / (DH2017 = $9.3m + JH2017 = $10.8m)]

So, while it is good, it is not as spectacular as it appears at first glance.

Still, its growth, and its 100% organic growth, to boot.

All I am saying is that one needs to be aware that the DH18 result has been boosted somewhat by some spillover earnings that did not make it into the preceding half-year.

For context, I have been a long-time follower of the business and was an IRI shareholder earlier last year.

After the FY2018 full-year result, I commenced selling my holdings and have been sitting on the sidelines watching for confirmation that the reasons management gave for the disappointing JH2018 result, were in fact legitimate.

This update provides that confirmation, I think.

I will now reconcile the numbers with my model and test to see if I should re-commence buying IRI shares, against the backdrop of other opportunities that have presented themselves due to the broader downward market movement in recent months.

But, this announcement will go a long way to removing the doubts the market clearly had following the FY2018 full-year result announcement.


[*] And its not as if JH2018 was cycling a very strong pcp: JH2017 was up a modest 10% on its pcp.