I think a dividend will be a while coming.Tough business they...

First 3 Last

Share
Profile

Follow
powertool

689 Posts.

33

18/08/22

16:20

Post #: 63194754
Share

Originally posted by spider5: ↑

My main takeaway from this report is that the business is normalising after the problems associated with Covid. This does not mean that things are getting much better for them. The drop in revenue is explained with the reduction in work associated with special cleaning due to Covid constraints and health requirements together with the ceasing of jobkeeper payments of over $7.3m. However the two good things apparent are the return to a positive equity position and a marginal increase in margins with the comment that rapid increases in costs are being passed on and accepted in contract renewals and existing contracts. Shareholders should be aware that the net tangible asset position on the balance sheet of companies of this nature never amounts to any large figure as the main assets of the company are usually intangible goodwill, cash and low value highly depreciating equipment. Their main value lies in the consistency and low churn of their contracts and staff together with a reasonable margin within their market. They do appear to be making headway towards these factors. More evidence required IMO but they have turned the corner. Value will come when they are in a position to pay a dividend.

Expand

I think a dividend will be a while coming.

Tough business they are in but if the balance sheet improves perhaps a worthwhile speculation considering the low market cap.

MIL Price at posting: 38.0¢ Sentiment: None Disclosure: Not Held
Upvote

0 Great analysis

Reply

Top Stories

SVL

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Microcap Wrap: 5 explorers with news out today

LRV

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

AVA

Ava Risk Group expands US presence with A$0.7M Substation Deal

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

CMX

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

LU7

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

RCE

Recce's R327 found effective against E.coli during clinical trial

There are more pages in this discussion • 14 more messages in this thread...

First 3 Last

Add MIL (ASX) to my watchlist

I think a dividend will be a while coming.Tough business they...

Top Stories

Silver Mines models five new calderas close to 396Moz Bowdens deposit

Microcap Wrap: 5 explorers with news out today

Larvotto identifies new exploration target at NSW's Hillgrove, boosting shares by nearly 20%

Ava Risk Group expands US presence with A$0.7M Substation Deal

Wealth Within weighs in on shock 4% inflation read – and stocks that could survive the gloom

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

ChemX Materials kicks off first stage works at WA high purity alumina pilot

Week 26 Wrap: Cerberus of inflation barks – rents, electricity & fuel – and world watches two elders bicker

Lithium Universe (ASX:LU7) board visits Quebec to engage key stakeholders

Recce's R327 found effective against E.coli during clinical trial

Featured News