Dusk's result out this morning, overall not bad (market reaction was good too).

This is a $75m market cap company, so if you remove cash, you're essentially paying $37m for a company that just produced NPAT of $9.6m for the 1st half and free cash flow of c. $20m. Makes it interesting from a value perspective. Only cloud was probably the membership program which now appears to be in long term decline. That and it's still candles and smell nice oils, and my wife still hates the business....

Held IRL & SM.

Update from the AGM this morning - some recovery in sales YTD...still a long way back from its peak and coming of a lower base so to be read with caution. But at least it's starting to show signs of recovery...

I also like that their Free cash flow is close to net profit and that they have a strong ROE (just under 50%). Add that to a net cash balance sheet and single digit PE and there’s not much not to like. It is just selling candles though…

This contrasts with ADH which has some of these characteristics but had a significant Free cash flow drop this year.

Disc - I own DSK personally not in SM. Have ADH in SM only.

PS is everyone else hating that this new(ish) lease standard now just makes it harder to calculate FCF - it was easier when an operating lease was just an expense…or is this just me?