You are spot on Sonny Jim. The culture is very poor and that comes from the top. It is a complete boys club with ex ASG and CSC employees filling senior roles and bringing their mates in which in turn impacts morale and performance. The huge Exec salary increases last year when the rest of the staff were lucky to get 2 percent did not help the situation either. Poor culture leads to poor performance and that is what has happened.
Also you are correct about key contracts - a few of the recent wins will not produce anywhere near the expected revenue as the industries they are in have been hit hard economically - not hard to work our which ones they are. Many of the recent wins were also on very slim margins so its a double hit. The integration of OBS and eSavvy has been horrible as you say - OBS staff losses have been very high - again down to misaligned cultures. The A and C division (Conducive acquisition) saved the day last year however that has also been impacted by the economic environment somewhat. I am sure day traders will make money on this but long term unless things are changed at the top it will not improve.
EPD Price at posting:
38.0¢ Sentiment: None Disclosure: Held
