Thought I would pop in to see how this is going. Well, some good news - you have MS back on the team. The WA court case is strange as the vendor was taking more shares after they were acquired and must have been happy under MS. That issue is being defended. This whole sorry saga is unbelievable and after reading the half-year results - released after market close on the last day - I hate that and its normally bad news. I really cannot believe how this is unfolding and ERP system install that is failing. The implications being that debtors blew out and are only now starting to improve. a whole lot of more shares out there and the profit seem to be around what was achieved years ago.
The one thing you have to say the guidance update really said all of what has actually now appeared in the results. So they are going back, it seems, to the communication style of the past - That is good.
Personally I think its unfolding as was my concerns when the previous CEO was appointed - can they move from a large corporation to a much smaller one and transition. I think we have the answer. Its a lot of overheads to do $120 million so they are flagging the cost out and that should improve results. Then you have the fact that they didn't reduce operating expenses but ended up with $3.2 million more to do virtually the same turnover. Whilst I should have understood that could have been the outcome from the guidance I did not and I certainly didn't expect the costs to have increased.
The abnormal expense is a very round number at $3 million - I really don't like these sort of blanket moves taking something and making it abnormal. - I can well believe that a failed implementation of ERP software could start blowing costs out and as cash is the lifeblood you have to throw the kitchen sink at it.
I actually hate being right in this case and had been hoping that it would be better but I don't think that it is as yet. The great comments are that it seems the divisional management team seems to be prepared to fix the problems.
I cannot believe what the share price is but actually OVH ( we had DIV that got taken over) is not that much ahead of PGC. Don't own that either. Is PGC a buying opportunity?
Good luck to holders
PGC Price at posting:
19.5¢ Sentiment: None Disclosure: Not Held
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