At least the company is still marginally profitable with NPAT of A$1.35 million in FY 24. However this is a poor ROIC.
The financial disaster that was the acquisition of Linc Personnel is laid bare. You'd wonder how an MD/CEO/majority shareholder failed to realise that LInc might not be successful in renewing contract(s), which unfortunately turned out to be reality.
The FY 25 outlook is very mixed.
The Victorian Labor government is adding to the state's massive debt pile daily, so the commentary from ASH re reduced funds available from that source is not unexpected.
Given that the $3.2 million writeoff was largely related to Linc, if we assume that $3 million of this won't recur, then adding the FY 24 NPAT of $1.35 million gives a forecast NPAT of about $4.3 million for FY 25.
It's a long road ahead before SH see dividends go back up to previous levels.
In the few minutes since the FY 24 financials were released, the SP has retreated from A$0.27 to A$0.25.
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