In 1H19 ANG’s revenue fell 17% to $122m and underlying EBITDA was $11.0m (full year EBITDA guidance $25-28m). However, a focus on the top line would be misplaced. Management has had a clear restructuring strategy, and is executing it well. The sale of non-core and underperforming assets may impact the top line, but margin is improving, debt is reducing, and returns (ROA, ROE) are climbing. The focus on working capital, cash flow and debt reduction has significantly de-risked this business. Market demand forces will have their say, but ANG is more a BUY on the impressive strategy execution to date.
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