Given FY20 headwinds CLX’s result was commendable and ahead of our expectations. The 2H performance was only slightly down on the 1H, and full year EBITDA (pre AASB 16) of $14.0 was down 7.9% on FY19, while positive operating cash flow of $11.7m (pre AASB 16) saw net debt drop to $40.8m. CLX is positioned to benefit from any economic uptick, particularly given the exposure to WA where near-term economic performance is likely to be relatively strong compared to eastern States. As a result, and following the share price falls this calendar year, we upgrade to BUY (prior HOLD).
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.