DCG 0.00% 29.8¢ decmil group limited

Ann: Decmil Secures $30M Mesa J Contract, page-14

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  1. 44 Posts.
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    Well said @Drenched57. Being an ex-analyst from a major stockbroking firm and reading between lines, IMHO you have hit the nail on the head. This was same case with RCR Tomlinson before it burned shareholders. Winning a billion $ long list of projects, raising capital and then administration because they didn't have the right resources and systems for the projects.
    The pressure falls on DCG executives to deliver a business as propped up in announcements. Project margins and cash-flow will be the key for the DCG to succeed not just winning more and more projects. "Win at all costs" mentality will surely repeat major losses.
    Have they declared any terms of the bank refinance and surety providers? They might charge massive interest and repayments which might just choke DCG. I'll be really interested to see how DCG performs on working capital management as per AGM over next 6 months.

 
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