I think you're on to something. Ive been contemplating on buying in for a while only because the market cap is low in my view. I've looked at the report as well and compared it to previous Prg and ske reports going back to 2015. The difficulty with trying to understand exactly the position of this company is the acquisition and homogenisation of data. You need to seperate out the marine manning business run out from Perth, from the industrial maintenance business and the facility management business.
Then you need to look at the staffing/ labour hire business and see pre skilled acquisition how much was Skilled and how much is Programmed. Programmed staffing side was about 200 mil revunue.
Then look at the PET electrical business, the painting and grounds business seperately again. The professional and nursing didn't deliver much I imagine.
Also look at the market cap presently and what it was supposed to be as a combined Prg Ske entity. It's missing about 45% of value. That's a lot of value.
About 3 months ago an announcement was made which said some divisions were changed around and the CEO Damian Burton of the marine/industrial maintenance/facility management division was sacked. These were split up. So it seems the chest pieces were moved around.
The reasons as to why the marine business was sold doesn't stack up. Why would it be sold at the bottom of the cycle for such little money when they won and celebrated through a price sensitive annoucement the Prelude contract which according to Technip's reports and announcements and industry oil gas journals should be worth about 10 to 20 mil profit for fy 17 18?
The reasons for the sale are nonsense as plenty of Perth based companies can run international operations and when ske was running the marine business it had no problem managing the international side of things.
Decrease in debt is good.
I also read the auditors made comments which concern me.
The reports going back show a very different story. I can't make spence of it.
The share price is only stable because 3 funds or more have been accumulating.
I've done enough research on this to feel worried. Do your own research maybe you see a different story.
PRG Price at posting:
$1.75 Sentiment: None Disclosure: Not Held
