Peet posted positive FY16 results with operating profit 11% to $43 million despite a 24% decline in revenue and flat EBITDA result. The strong property market performance over the past 5 years has fueled this result as Peet has effectively ridden the property cycle. Performance within Western Australia and the Northern Territory regions have been poor but this has been negated by strong performance in Victoria. As such, EBITDA margin increased to 32% which is a 6% increase from the previous period.   The group has taken advantage of industry cycles to effectively utilise its capital. As a result, it has reduced net debt to $194 million from $291 million in 2011. Similarly, its debt-to-capital ratio has improved from 52% in 2011 to 28%. Meanwhile, gearing ratio is currently above the group’s targeted range of 20 – 30% but this is well within the gearing covenant level of 50% which gives Peet sufficient headroom.   Click here for updated research on Peet Limited.