Low activity levels and margin pressure continue to impact CLX, with like for like EBITDA down 29% to $6.9m in line with December guidance. AASB 16 (Leases) had a big impact on the financial statements (as expected). At the PBT line, which is more comparable with prior periods, we have lowered our FY20 forecast slightly to take into account growing economic risks. Expectations for a slower recovery also influence our revised forecasts for next year. We maintain a $0.80 valuation and HOLD call pending evidence of an earnings turnaround and improving returns on assets.
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