Here are things more relevant than LYL-in-Africa to occupy your attention.
My earlier post was on Africa as a risk, or not, for LYL. The post was long, so I ignored what LYL is doing to both flatten the cyclicality of its EPS trajectory and the slope of the trajectory. LYL is like a dry-land farmer who has mastered the art of dealing with the vicissitudes of rainfall, and is now entering different bolt-on commercial activities to grow his business and lessen the swings in annual income. LYL plans to enter both additional lines of business and geographies.
A second reason for ignoring this is that gold1650 touched on it in post 59762778, and so did the Presentation on page 28, which reads:
Continued focus on achieving broader geographical reach – across Asia-Pacific and the Americas
Balanced project delivery portfolio – mix of EPCM and EPC
Grow recurring revenue streams
People Plan – continue to attract, engage, inspire and retain a high performing, global, professional workforce
Innovation and emerging technology – digital twinning (ADP and Orway IQ) and Future Battery Industries Cooperative Research Centre (FBICRC)
Improved knowledge management – driving increased efficiency and facilitating work sharing across divisions and subsidiaries globally.
Establishment of Lycopodium Energy service offering in the market to support the burgeoning renewable energy sector
Why Management would bother to do that now may be to reduce investor perception of LYL being a non-growing cyclical business, and thus get a higher PER. Estate planning may be an issue too, because bequeathing shares in an illiquid company is not the best way to pass wealth to one's heirs. And further on PER, that the remarkably stolid Management used the word “fantastic” and showed signs of being excited should in itself lift the PER, and add at least $1 to the SP.
Shrink the font size if the lines below overflow. On LYL's non-growth over the decade, consider:
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