Nice result .Revenue exceeded Budget , the EBIT moved from a...

Nice result .

Revenue exceeded Budget , the EBIT moved from a disappointing 4% up to a reasonable 9% , Cash at bank was up to a strong buffer at $2.5 million and the debt expenses reduced with lower debt levels and better interest rates dramatically .

The funny thing about debt levels is that before the GFC companies were encouraged to take on debt, in fact if you did not have a high debt ratio you were considered to be anti growth and boring .

Then all the entrepreneurs and many high growth telcos and dot comm businesses went under and we seem to have gone back the other way a bit to far . .... ?????

I agree debt with Joewolf debt can now move higher again as interest rates are at only at 6-7% . This allows companies like PGC to use cash and debt to buy another business and reduce the dilutionary effect of having to issue shares to make the acquisition .

Buying revenues of 2-3 million on 3-4 times profit , with cash and debt and improving their margins is now what the company needs to be doing .

The key here though is to be buying businesses that bring synergies and doesn't just add the revenue on as the growth but allows the synergies to grow revenues of both the new business and the existing business and allows the overall EBIT margins to double again and again until they finally reach a maturity point somewhere between 20-25% of much higher revenues .

Now looking forward to the update at the AGM to see how the first quarter has gone , and to see if they are on the acquisition trail that gives the company a chance of moving towards $25m in revenues at a 12-15 % EBIT margin without issuing any more shares .

On the keeping the cash for acquisitions front I personally wont be taking my 1c per share dividend in cash and will elect to participate in the div reinvestment plan !!!

I disclose I have increased my small PGC holding over the last few days since the result