The acquisition of Jayde helped CLX deliver underlying growth at both revenue ($183m, up 19%) and EBITDA ($16.2m, up 7%) lines. Margins were weaker than expected though (largely reflecting the slow pace of WA recovery), and this is captured in our now more conservative forecasts. Positively, CLX exhibits greater geographic diversity, while consolidation in WA positions the Company to benefit from an eventual turnaround here. Our blended valuation has dropped to $1.35 (prior $1.50), impacted negatively by earnings adjustments, but positively by lower valuation risking. Despite a pullback in forecasts, CLX is still trading on undemanding multiples and we maintain our BUY call.
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