FY20 EBIT of $130.4m was better than recent guidance of $125m+, and well ahead of original guidance ($110m+) and the FY19 result ($92.8m). Good cash conversion meant ASB ended the year with net cash of $272.4m, an excellent position to support investment into steel shipbuilding capabilities and enhanced support infrastructure. We remain attracted to ASB’s high exposure to defence spend, especially given increasing geopolitical risks, and think this provides a strong base for future performance. We retain a BUY call.
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