Yes agree and their disclosure around depreciation and expense increase is piss poor. Makes me wonder this so called 3 year plan of theirs whether they budgeted and forecasted this initially.
There was absolutely no disclosure in the prospectus that in the next 3 years 2016 to 2019 there would be so many “one off costs”. I mean surely that relevant and material information to investors.
The worst part of this is, the business is actually heading backwards since it ipo. Pro forma ebitda in 2015 and 2016 per the prospectus is 10.2 and 12.2 million. Last year we achieved 9.8 million that less than 2015. Worst off the NPAT to revenue % is even worst because depreciation/interest costs now are so bloody high yet none of this was even disclosed in the prospectus.
Either they never ever budgeted this in the first instance or they decided to not disclose what should be very relevant information. It really piss poor, worst off none of this is explained in their reporting other than “expense line due to m&a activity” and depreciation due to “investment in fleet/IT/ERP/PMS software”.
Taking a squizz at the notes for plant and equipment and it doesn’t look pretty.
Opening balance plant & equipment 8475, depreciation of 2742. That at 33% of opening balance...
Motor vehicle 4586 depreciation of 1855, 40.44%??? I mean cars depreciate but Iife of 2.5 years you have got to be kidding?
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