amazing goblin goes nude for bull dance, page-166

First 166 Last

Share
Profile

Follow
Pabloescobar21

34 Posts.

4

19/07/23

03:52

Post #: 68854963
Share

Originally posted by joshsi: ↑

I don't share the same positive outlook for Downer.

Their restructure doesn't really seem to address any major issues which is within the management level below the CEO board and CFO, rather they appear to be reshuffling the board. Remember it was only a few years ago they restructured as well so the question has to be asked, why again? And lastly ICAC will surely give them a big penalty. Following LinkedIn people movements a lot of long-serving employees have left and gone elsewhere to competitors or other major construction projects like North East Link. A serious question needs to be asked about other contracts performances given there was a "utilities error" which I struggle to believe a CFO and CEO can't be across. What other skeletons are in the closet?

I do note they have made a few divestments over the last few years which has been beneficial and would be interesting to see what the sale of their Major Projects division means, was it an ultimately loss maker or low value add business?

I have a few questions for Downer I would like answered before I were to invest.

1. What is the plan with $100m of reduced overheads in the business, and what level of investment is required in technology or other plant/gear to sustain the business?
2. What is the plan for Downer to reduce subcontractor costs and to bring more services in house? Over the last few years the trend of subcontractor costs has been increasing each half which indicates to me that skilled labour is being sought elsewhere rather than in-house generating margins.
3. Cash flow seems to be relatively poor given their level of finance expenses in the business which is circa 30% of EBIT, what actions are in place to mitigate such large finance costs which chew into margins year on year?

Expand

definitely a coincedence that both CEO & CFO left....my opinion is they were pushed out rather than left to find greener pastures....Selling of the major projects divisiion also doesnt look that great to me???

DOW Price at posting: $4.57 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

Reply

Top Stories

BRX

Belararox to grow copper footprint in Botswana with 4,286 square km tenure

3 stocks with antimony news on Thursday

MTM

Forget gallium: MTM says it's extracted gold from e-waste

CU6

Clarity progresses SECuRE trial with positive safety results

GTR

GTI extends uranium mineralisation at Lo Hema through development drilling

SS1

Sun Silver confirms high-grade extension theory at Maverick Springs with 79.6 g/t intercept

ASX Market Open: Local bourse to trade green | Thursday September 12

NEC

Nine Entertainment announces its CEO is stepping down – on an ex-divvy day

DXB

Dimerix begins recruiting young kidney disease patients in Mexico for Phase 3

CHN

Chalice jumps on Putin nickel export ban threat – but then there's bad news