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).
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