VTG is a good cash generator but they need top line growth to resume to get the share price really kicking along.
If like-for-like are ticking over at 15% plus then I'd expect to see gross revenue increase in the next reporting period. IF they deliver that the share price is due for a quick re-rating given their focus on 'productivity' gives them a good expense base to launch from.
I'm hesitant to guess whether they will deliver - as revenue down in recent report and effect of pending acquisitions has yet to be clearly explained to market.
Would be very helpful for VTG to issue revenue guidance and commentary around impact of acquisitions on p&l and balance sheet. Until there is certainty around those areas it's going to be hard for new investors to pile in notwithstanding it is trading on a ridiculously low EV/EBITDA multiple.
JT
VTG Price at posting:
66.0¢ Sentiment: Hold Disclosure: Held
