Is it possible the fall in SP is related to the termination of the NBN contract at end of this month and hence loss of revenue?
If so, note MD comments: “New Developments (NBN) is a relatively small contract for Service Stream, estimated to contribute $20m in revenue p.a. going forward,” Service Stream managing director Leigh Mackender said in a statement.
“We do not anticipate that the absence of revenues from the New Developments contract in the second half of the financial year will have a material impact on achievement of the company’s FY17 profitability targets.”
“We are proud of our achievements over the past four years in delivering services against this contract, and the business’s ability to meet or exceed our client’s delivery objectives over this time,” Mackender said.
Methinks SSM needs new contract to offset this loss and restore market confidence.
SSM Price at posting:
96.0¢ Sentiment: Hold Disclosure: Held
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