Its a possibility but I don't think it is likely. They have weathered the worst of labour disruption, supply chain disruption & weather delays. When I mean they have weathered it doesn't appear that these factors have negatively affected their receivable days outstanding. With customers delaying their accounts payable to improve their own working capital cycle. This means Acrow is payable days maker not taker.
I believe their earning quality is such that they could extend terms with lenders in the form of a term loan or line of credit. In the event that they cannot this there are many fund managers that would happily put their hand up to provide hybrid debt in the form of a convertible note or bond with warrant i.e. Collin Street and Pure Asset Management.
Putting the above aside Acrow are well positioned to take advantage of the structural growth occurring in public infrastructure and organic growth that will come out of WA assuming they can obtain labour. Moreover they are being priced currently like a civil construction/equipment hire. This is a dis-justice given the proprietary equipment and specialist engineering they provide. Note that they expect 40% ROI off they equipment capex that was deployed from the cap raise. It has also been pleasing to see Steve put his money where is mouth is with on market purchases over the past 16 months.
We are in safe hands in a market that is going up and down like a brides nighty... Managements had their ear to the grindstone executing on behalf of shareholders we should be thankful and appreciative for how they've performed....
ACF Price at posting:
50.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)