Cielo Capital – Company update of Vesture Limited

Please find attached a company update for Vesture Limited post their half-yearly results. We have upgraded to an Outperform rating from a Speculative Buy and retain our $0.16 price target.

Key Highlights include:
– 1H13 Revenue of $14.6m, up 6% from the corresponding period and well inline to meet our revised FY13 forecast of -$31.1m.
– Record Profit Before Tax (PBT) growth of 79%, with PBT of $1.1m in 1H13, up from $0.6m in 1H12.
– A total $2.5m of debt was repaid in 1H13, with VES targeting $5m to be repaid by year-end.
– Net Income increased 394% from $0.14m in 1H12 to $0.6m in 1H13.
– Forecast FY13E EBITDA of $6.97m and Net Income of $2.2m.

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