While a agree broadly with the several positives in this report, the increased debt has to be taken at face value.
The company itself said at the last half that there were significant early payments and that would even itself out going forward, and so it has.The dip in turnover was well flagged, they lost the QIC contract in October, as well as having shopping malls affected by covid lockdowns, the latter being out of the companies control.
Also there has been a blow out of receivables of some 6 million, they needed to finance this before getting paid.
What is Cannacord waiting for now, they need to produce a report or piss off, i think we would do better with a more retail broker, maybe a Morgans or similar.
On thing i am dissapointed about is the complete lack of marketing done round this company, in the report they listed multiple new contracts gained, these need to be announced on an ongoing basis even if they are not market sensitive, i am starting to have doubts about the CEO, i just do not think he gets that running a public company is not just about the figures, you have to market as well, another small problem i see is that the chairman has stacked the board with his appointees,how do the founders who own most of the stock get their voice heard,
we are paying some rather large head office costs, we need to have a good look at cutting back at this level.
And a final concern, i believe the investment community is confused about who is running the company,
Grimshaw as chairman is larger than life , but Alomes as CEO has gone missing, it begs the question, why in hell are we paying for both of them.
This company is looking very cheap at current prices, less than 2 times on an EBITDA level, thats insane, surely a merger or buyout from another company would release some of the latent value.
And a final thought, how about starting to pay dividends again, even 2 cents per half would be around an 8% fully franked yield.
MIL Price at posting:
52.0¢ Sentiment: Hold Disclosure: Held
