Rubicon’s (NASDAQ:RBCN) H1 performance contained typical seasonal trading features ahead of the more important H2 trading period and our earnings estimates are unchanged. We are encouraged to see a number of positive commercial steps being taken in each of the main countries, which will support future aspirations. Our earnings estimates are unchanged as is our previous DCF valuation analysis, which indicated a NZ$0.74 per share valuation.
First half reflects seasonal trading pattern
Rubicon’s maiden first-half report (to September) as a focused, advanced tree seedling development and supply business, contained good updates on operational and commercial initiatives in the seasonally quieter section of the year. For the record, the company generated revenue of US$10m and a U.S. GAAP EBITDA loss of US$5m, before restructuring costs of US$2m, in the period. The underlying cash outflow performance was consistent with the seasonal trading pattern, in our view, and the final deferred consideration payment of US$10m for ArborGen was also in line with previous guidance. Net debt at the period end stood at US $24m.
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