agm feedback

Here's some feedback from a shareholder who attended yesterday's AGM. The speech given by incoming chairman David Franklyn was a lot more positive and upbeat than the ASX releases. For the first time in a long time, the business has a positive outlook with no more disasters on the horizon.

Key points by David Franklyn:

- No one is happy with a 6c shareprice. The board understands this.
- FY14 is all about the restoration of shareholder value. Management will start paying out dividends as soon as possible and examine share buy backs.
- McGrath has been a tremendous performer. It is a very good business, which typically makes $4m EBITDA pa. It has strong risk management with stable management.
- McGrath's Rio contract is performing well and due to complete early CY14. Management is confident of replacing the Rio contract with additional mining services work.
- Legacy contracts will be closed out shortly. This will enable dividend payments to commence.
- There is further scope to cut overheads.
- The company will start communicating with shareholders so the shareprice better reflects the value of the business.
- The business has $20m of tax losses and $17m of franking credits.

All up, the business is in better shape than the shareprice gives it credit for.