Ann: Becoming a substantial holder, page-10

I have not read full report yet but I agree margin seems low but if I am not wrong they only had 1 year with trivantage so hopefully this year's financial report will shade more light on margins and cash-flow. Also, tradies are not in shortage but cheap tradies are in shortage for sure and as you mentioned with fix price contract margin will be eaten away for using above market/tender rate subbies/contractors.

However, expansion possibility are enormous particularly if they expand into rail signalling works and rail contracts as for next decade there is plenty of rail work between Vic & NSW.

They should look at taking over small rail signal business which mostly rely upon electricians for delivery of signal works. it is specialist area of rail and do cost lot of money if things get wrong but margin's are high (as the risk are high as well so they need to be careful in signing any contract with big liability) in my understanding so they should acquire small business and grow with that business by acquiring more once they get skill & experience around it... in my opinion. apologies if they already involved in that field.

they can also look into expansion in vertical integrated business i.e. start retail of selling electrical parts & supplies.... in my opinion.

However, at no stage they should do the mistake done by MLD to buy another business in the same field they currently work with heavy debt (small businesses are ok) as at all cost they should diversify revenue stream so if there is down time in comms. business due to lack of NBN works then other business can cover the margin gap for those down time.. in my opinion.