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PLC - Waiting for the recovery in infrastructure spending - Earnings Flash

Company Research

29 Jul 2016

H1 2016 revenue and NPAT declined 35.9% and 41.6% YoY, respectively. However, this is in line with our expectation as we already anticipated weak Q2 earnings and a higher contribution to earnings in H2 when asphalt demand resumes. We do not foresee any significant change to our current target price in our upcoming Update Report but are unlikely to raise our rating to BUY given an expected fall in dividend payments, unless the share price falls further.

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