CLX has transformed itself from a largely WA-based business to a national logistics and transport provider. After the acquisition of Jayde in the last half, CLX expects to generate ~40% of its revenue from the eastern states. From this platform we expect last half’s adjusted EBITDA of $9.5m (slightly below our $9.9m forecast) to improve over time as the WA economy picks up steam and national organic and acquisitive opportunities emerge. Our valuation drops slightly to $1.50 (prior $1.60) on amendments to forecasts, but is still well ahead of the current share price. We see value and maintain our buy call.
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