Looks like MIL had a good quarter, solid cashflow making up for the timing difference in the last quarter due to the wages payment.
By my calculation this should support an EBITDA figure of over 11 million for the year, another solid year as they attempt to right size this business, debt reduction has been great, hopefully they are pulling out more costs as there is little growth on the top line. Some comfort can be taken in their recently announced contract renewals, i would love to know the size of their order book, Myer reporting today also looks good for MIL.
Couple of other points,
Royce Galea is described as CEO and managing director but nowhere has there been a formal announcement to confirm this, i believe it might be an ASX listing condition that his total salary and benefits are detailed in an announcement, i think the company needs to update the market to what his true position is.
A total of 112, 500 dollars was paid to Jungle Capital, this is an entity associated with the chairman Stuart Grimshaw, i think shareholders are entitled to know what these guys were paid to do, especially as Jungle has taken a fair bit out of the company over the last year, simply calling it corporate work is not good enough given the magnitude of funds expended.
If Jungle is working on a corporate deal then thats fine, but if it is simply looking at debt reduction stratagies or cost savings, should not that be the purvue of our CFO, after all he is being well paid at the moment,
indeed most of the management team seem to be very well paid for the size of the company at the moment.
For me at the moment it is still a buy, more so now when you consider the market cap, im just not sure that the current management has the skill set to go out and market the story, or if that fails find a buyer for it,
MIL Price at posting:
32.0¢ Sentiment: Hold Disclosure: Held
