Nice comments re SRH.Last year the crowd said that margins were...

Nice comments re SRH.

Last year the crowd said that margins were the big problem (it was, especially employee related costs) however this year, there has been a very solid improvement in margins/cashflow and more of a fall in revenue. Overall I would definitely prefer margin growth over revenue growth, as revenue growth can often be unprofitable in such a contract-based competitive industry relying on alot of imports. I must say based on the balance sheet, stgrong working capital position, cashflow and forward multiple, this stock at this price doesn't really worry me much especially considering the issues they have had to deal with, ie coates shorco t/o and overseas licencing issues on other products. My concern relates to the constant change in executive management, this is not something im a fan of and some stability in this area would be nice. What is interesting about this business is how different divisions have really picked up the slack at different times on both margin/revenue. This can be seen especially re civil services division. I dont know if they will be able to get their margin back to 8% ish due to Tritton barrier drop-off but even 5% with flat growth and its not a very expensive co.

DYOR.