Tszyucrew7's comment, “Seems likely to get follow up work. In...

Tszyucrew7's comment, “Seems likely to get follow up work. In addition takeover targets are in the companies sights too.” prompted me to see what the annual report mentioned on the matter of acquisitions. The annual report refers to that possibility, but gives no hint of its probability. To wit:

“The Group’s balance sheet, funding facilities and solid cash position provide a strong foundation for future organic growth and potential acquisitions. The Group will continue to assess acquisition opportunities both domestically and internationally to add value to NRW’s service delivery model.

Due to the strength of the balance sheet, the Company has sufficient flexibility for future project funding and/or acquisitions.”

A company that NWH could easily digest is BYL (Brierty), which is substantially in the same business and geography as NWH. If BYL's two major directors, Alan Brierty and his wife could be induced to sell, that would deliver 40% of the shares. BYL's P/E ratio is slightly over 4, so a large premium over the current SP would not be expensive. BYL's capitalisation is currently below NTA.

It would also make some sense for MLD to take over BYL, especially as MLD owns 10% of the BYL shares, making it the third largest shareholder.

Alan Brierty is a wealthy philanthropic man, so money is unlikely to induce him to sell, but an offer that puts his employees and customers into worthy hands, and which furthers his ideals for Indigenous advancement may have appeal. NWH could tick those boxes. Both BLY and NWH have joint ventures with the Ngarluma Yindjibarndi. Foundation (NYFL).

The foregoing is simply the daydreaming of an idle mind – not something that should add weight to one's decision to hold NWH and/or BYL, or not. I hold both, with the NWH holding being about four times larger than the BYL holding.