I've just rerun my forecasts for the Linc contract loss (see below). The reported results will look a lot worse than these forecasts due to the impact of goodwill/contract writeoffs etc but these forecasts are my best estimate of 2024 after completely removing Linc. I'm suspecting a relatively flat result in 2024 as the ongoing margin squeeze and Linc loss is offset by earnings from Owens acquisition and training growth. Given this, my personal view is that the reaction to the contract loss was more the final straw for shareholders that are worried about the new labour hire legislation.
In regards to Same Job Same Pay, I suspect that either the new legislation will continue to be watered down (Burke has already made a number of concessions) and/or could be delayed further if it is pushed into a productivity commission review or similar. The latter would be a great result as it would likely push the legislation past the next federal election and voters are going to be very focused on anything that threatens jobs.
ASH Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)