What you mean nothing wrong here?
If revenues were driven by ad-hoc hotel work then this is assumed to be not stable revenue & therefore not normalized earnings.
The business achieves 20% gross margins & 1-4% EBIT margins. If their revenue gets cut from less ad-hoc work the business is going to lose money. I think there is alot wrong here. Once I didn't get a response on the 36% customer I was unsure if they were a stable recurring customer or a once off short term ad-hoc contract customer (Government) given the hesitation in his response & lack of transparency I got out quick. I may ne wrong on that decision but I won't regret getting out as I believe I made the right decision based on the information I had & believe this was a good investment move.
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