Aug 2008 Financial News

RML Releases Half Year Results

Aug 20, 2008

Readymix (West Indies) Limited
Results for the Half Year Ended June 30, 2008

Earnings Per Share
For the Half Year Ended June 30, 2008, Readymix (West Indies) Limited (RML) reported Earnings Per Share (EPS) of $1.85. This represented an increase of 15.6 per cent or 25 cents on the comparable period of fiscal 2007. Q208 on Q207, RML’s EPS grew an outstanding 31.3 per cent or 25 cents from $0.80 to $1.05.

Financials
• Revenue, up 3.3 per cent or $5.0 million to $158.9 million
• Operating Profit, up 14.3 per cent or $4.0 million to $31.9 million
• Net Finance Costs, down 36.2 per cent or $0.7 million to $1.2 million
• Profit After Taxation, up a significant 16.0 per cent or $3.1 million to $22.3 million

Recommendation
The Directors expect a good second half performance and continued profitability for the remainder of the year.

We have forecasted an EPS of $3.80 for FY08. At the current price of $31.50 and this forecasted EPS, RML is trading at a price to earnings multiple of 8.3 times. While we continue to recommend a BUY on this share, we remind clients that approximately 80 per cent of the issued share capital of this company is secured by substantial interests. Hence it may be difficult to obtain this share.


Nancy Chen
WISE Equity Research Team