PGC

4.76%

44.0¢ paragon care limited

Yes I agree on your point of divvies being paid, I would much...

First 12 Last

Share
Profile

Follow
WAIMO70

190 Posts.

7

01/09/20

08:31

Post #: 46974295
Share

Originally posted by DiggingforGold: ↑

The good:

- Massive improvement on cash collection and management in the second half. Profitable businesses which can't manage cash still die, so hopefully they keep the focus on this when moving forward. Positive operating cash in the 2H even excluding JobKeeper and tax refunds is a huge win during COVID.
- Actually managed to nearly match last year's revenue, despite COVID. This doesn't look to include JobKeeper either which was netted off against employee expenses.
- Cost out seems to be progressing and they are realising synergies with shared services. Certainly hope so, if they didn't have central finance, HR & IS&T teams previously then it was an absolute failure of previous management.

The bad:

- Debt remains stubbornly high. They seem happy about it based on their gearing against company capital, but the companies capital is based on intangible goodwill. Not coming down any time soon with repayments deferred to Dec-21, hopefully will not grow though and the business will.
- $15m of earn-out listed in current liabilities means it is due this financial year. I hope it isn't until closer to next June because that is a significant chunk of the cash balance.

Unsure:

- Dividends being back on the agenda. Would probably prefer that money go towards debt repayments to shore up the balance sheet, but don't care a huge amount provided they are back in the profit.
- No update on the court case they had going over in WA against one of the prior owners of a business they bought out (if I remember correctly)?

Hopes & Dreams for FY21:

- Positive NPAT, positive cashflow (overall not just operating and without raising capital), revenue growth and gross margins back to prior year 40%

Overall an OK result for a new management team taking over a cluster during a cluster. Didn't knock it out of the park, but definitely not a bad result in my opinion. Upgrading sentiment to a buy, but feel the risk is very high with those debt levels.

Expand

Yes I agree on your point of divvies being paid, I would much rather they focus on debt reduction, I was a little concerned they may have had a deeply discounted share raise but the banks must be happy with the outlook at the moment, which also gives me a measure of confidence.

PGC Price at posting: 20.5¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The market's shrugged at China's stimulus measures all year. Why is this one different?

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

The winners & losers on market if negative gearing were gone

There are more pages in this discussion • 33 more messages in this thread...

First 12 Last

Add PGC (ASX) to my watchlist

(20min delay)
Last 44.0¢		Change 0.020(4.76%)		Mkt cap ! $728.3M

Open	High	Low	Value	Volume
42.5¢	44.5¢	42.5¢	$861.6K	1.972M

Buyers (Bids)

No.	Vol.	Price($)
2	111901	42.0¢

Sellers (Offers)

Price($)	Vol.	No.
44.5¢	51934	3

View Market Depth

No.	Vol.	Price($)
2	111901	0.420
1	82866	0.415
4	181337	0.400
1	25000	0.395
2	26325	0.390

Price($)	Vol.	No.
0.445	51934	3
0.450	520498	11
0.455	12500	1
0.460	60756	3
0.465	67167	4

Last trade - 16.10pm 27/09/2024 (20 minute delay)

PGC (ASX) Chart

Yes I agree on your point of divvies being paid, I would much...

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

ACCC seeks Olam divestments before it can buy Namoi Cotton

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KalGold rolls out detailed aeromagnetic survey across Pinjin project

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The market's shrugged at China's stimulus measures all year. Why is this one different?

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

The winners & losers on market if negative gearing were gone

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Yes I agree on your point of divvies being paid, I would much...

Top Stories

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

ACCC seeks Olam divestments before it can buy Namoi Cotton

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

KalGold rolls out detailed aeromagnetic survey across Pinjin project

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The market's shrugged at China's stimulus measures all year. Why is this one different?

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

The winners & losers on market if negative gearing were gone

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News