Underthebridge does make a few good points.
The margins are falling and despite huge sales increases, the NPBT remains static.
Plus the Foxtel contracting business is very mature with revenue falling. The revenue fell 9% in the first half of FY11 when compared to 1HFY10. I'm convinced this will continue.
The new business acquisition will help but my worry here is the extra layer of costs which a public company brings to a mid sized business.
As a shareholder I also worry about the HVAC industry in the present economic climate.
It's a hold and watch for me though I'd expect some SP weakness before we get some uplift from a strengthening industrial segment...could be a while off though.
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