I think we are at the juncture where we will see if PGC overpaid for the 3 acquisitions last year. Or perhaps the acquisition of Midas, which has not added a zac of earnings.
If PGC only made 2.29c EPS last half with a full contribution from the 3 major acquisitions, I am not sure how it is even going to match last years 5.6c FY EPS, never mind increase it to 6.3c EPS as suggested.
PGC will need a monster second half growth in revenue to reach those sort of heights, and it will need to be all organic growth/synergy that delivers it. Never say never, but it has got to be a big stretch.
I am still a hold, but a little more circumspect after the first half's surprise lack of EPS accretion.
Gosouth
PGC Price at posting:
75.5¢ Sentiment: None Disclosure: Held
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