Dec 2007 Financial News

RML Nine Month Update

Dec 13, 2007

Readymix (West Indies) Limited
(Nine Months Ended September 30, 2007)

For the Nine Months Ended September 30, 2007, Readymix (West Indies) Limited (RML) reported Earnings Per Share (EPS) of $2.34, up an outstanding 244.12 per cent or $1.66 on the corresponding period in FY06. Q307 on Q306, the Group’s EPS was up 65.22 per cent from 46 cents (Q306) to 76 cents (Q307).

RML last closed at a price of $7.00. We have revised our forecasted EPS upwards to $3.05 for FY07. At the current price and this revised forecasted EPS, this share is trading at a price to earnings multiple of 2.3 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 held by substantial interests. As such, acquiring this share will most likely by difficult.

Nancy Chen
Research Analyst