***notice received:research report gsjbw*** Highlights of the...

***notice received:research report gsjbw*** Highlights of the half yearly announced yesterday were:
npat=359k
excluding last years abnormal of 263k it still
represents a creditable 224.375% turnaround

most pleasing was that sales revenue has continued to increase & is now up 5.7% to 16.174m

profit after tax and before amortisation,goodwill
and brand names +855.5%

ebit & significant items +25.3%

borrowing costs down 16.8%

pretax profit 590k versus a loss of 58k last year

6.3m raised via 6:5 rights issue

company expects demand for services to continue to year end 6/04 resulting in another significant set of numbers

post westrac 25m placement approved the company said 'the NEW board may well review the outlook for the company in light of the circumstances existing @ the time'
(this might be a precursor for a full takeover sometime down the track and subsequent name change to either westrac or caterpillar aust??)

also the board will be restructered to reflect the 60% shareholding that westrac will have once the proposed
placement is approved
accordingly mssrs landerer,higginson and kelsey will vacate their positions

the only draw back from the announcement is that mr kelsey will be leaving after only 6mths service
he arrived @ the company with much fan fare and a specific mission to manage the victorian operations

mr kelsey has real hire industry experience and to not capitalize on this knowledge(even though the cat rental name was not going to be used in vic)in our humble opinion is a lost opportunity

CONCLUSION:
the company appears to be in a much stronger financial position

curtosy of the rights issue cash is now 3.485m with another 25m to come once the placement is approved

of most note is the improvement in NTA +1c to 21c,EPS 0.40c negative to 079c positive and 'retained earnings' up 550k

the company continued to be focused on lowering costs and closed only one brach but all employees and equipment were retained and transferred to other branches

the recent rights issue and 25m placement will reduce sub hire costs,expand and build up hire fleet and open branches in growth areas branded 'CAT RENTAL STORES' (from4/04) in nsw & act to take advantage of the BIS Shrapnel strong forecasts for the next several years in the building and construction sector