More Decmil Ark Drama, page-18

Positive284. I believe the company management structure appears to lacks experience. The resources and construction market in which Decmil operates is very different to the last 10 years. While on a growth path in a heated mining boom Decmil was well placed for specific works, predominantly camp accommodation.

Yes the CEO has been with the business for many years. He is the Son of the founder and major shareholder Denis Criddle. With the CFO, Company Secretary and COO All resigning within the last year this raises concerns about the management style and stability.

The test of any company is how it manages and survives major market adjustments, reduced margins, reduced works and increased competition. This is the market Decmil is now in.

When investing one needs to look at not only the past but the business metrics and forecast. It appears Decmil work in hand is now at a low point with many projects coming to completion. Their forward works are limited and in a competitive market against companies that have significantly more experience. The question is can they achieve their targets given they have such little work in hand? I think it is unlikely given they appear to be hanging their hopes on winning a school PPP and other works where they have little or no experience.

Even if they win the new work (like the school PPP) it is likely to be at significantly lower margins than their historical mining works and thee question is then- can they make a profit in this commercial space???

I still believe there is better structured companies that are diversified with the potential of riding out this downturn better than Decmil.