ZGL 0.00% 6.5¢ zicom group limited

It all boils down to margins.In its glory days ZGL was producing...

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  1. 7,635 Posts.
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    It all boils down to margins.
    In its glory days ZGL was producing >20% EBITDA margin & 10% NPAT margin.
    Now the cost of doing business has increased signifcantly.
    Materials cost went up to 60% fromm 55% , labour cost increased from 18% to 24% of revenues.....Add increased interest charges & you end up with slim margins.
    The fact they tend to keep their human capital & don't slim down in lean times, any slight drop in revenues puts the business in survival mode.
    ZGL has huge potential if they manage to restrucure , become leaner & more efficient.
    A long journey that started a decade ago.....We may soon see the fruits of this ongoing effort.
 
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Last trade - 16.12pm 04/10/2024 (20 minute delay) ?
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