FUN - Analysis Updated

Here is my updated analysis of funtastic limited.

The revenue was up 12%. This is on track
Profit was doen 9%. Interesting figure which needs further investigation.
Profit before amortimisation was up 5.8%. Another interesting figure.

The most important figure ... EBITA was up 13%. That is making me feel more confident.
EPS before amortimisation was up 5%. Interesting figure.

A dividend of 4c is declared which is a nice dividend for a share purchased at $1.725.

Taking a closer looka t the amortimisation shows that it is for intangible assets due to the current acquisitiosn during the year. These include distribution agreements, licence contracts and other arrangements. The biggest chunk is done this year and is reduced over subsequent years. It does not affect cashflow which is important.

The net debt has increased significantly but it is still only at 46.5%.

The amortimization has really made the numbers look bad. But under it all the company still looks ok.

They are offering shareholders the ability to buy $5000 worth of shares at a 5% discount and this will reduce debt. This could be a good idea as it gets rid of debt cheaply for the company. unfortunately it dilutes the holdings of shareholders who do not take up the offer.

I will write some more later tonight or tommorrow as I am going to go watch the contender now. And I don't want to rush any analysis.

Good luck.