They are selling the unwanted parts of the business, so these figures are hard to directly compare depending on the price received for the parts of the business they won't keep.
As to turning the business around, I asked a question at the AGM but couldn't stay to watch and my question was answered via email, but it covered some of the topics that were presented in the webinar on why they think they can turn this business around. The main issue seemed to be that the previous management somewhat burned suppliers by not paying them and then when they won contracts they couldn't get the suppliers to give them the product they needed to finish the job. Con believes this can be swiftly turned around with better relationship management, and the success of the acquisition hinges on whether he is right here or not. They believe they will make a profit in year 1, and build the business back up over time. If they do that, then it's a good acquisition.
For these reasons it's hard to compare with glowing structures in terms of raw numbers. I think 6-12 months will be needed to tell the full story.
FOS Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
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