- Given the current trajectory of diversified revenue growth and commercial print decline I think the EBIT pie will get bigger over the next few years. This is because of the higher margins of the growing business.
- Corporate (unallocated) costs have come down significantly but are still too high. They are consuming most of the profit being earned.
- Still waiting for the PXU report to see any progress on legal challenge.
- Improving the profitability of the business will benefit both SRS and PXUPA. See Elders for an example of this.
- At current PXUPA prices management should think about buying back preference shares. Every dollar spent will earn $5 - $10 depending on the eventual conversion ratio. Less risky than a acquisition too.
Will eagerly await the AGM. I understand that the new CEO may still be getting his bearings but we need to see a plan on how management intend to improve the profitability of the business, sort out the capital structure and provide an adequate return to both classes of shareholders.
SRS Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
