There is no doubt there is a 'happy organisation' feel about PGC. This comes with most companies that have sustained strong performance. But I don't see it as an indicator for future business performance myself. Things get ugly internally quickly if a business starts going amiss.
However some other things I took away from the meeting:
• they are very proud of their high no. 0f successful acquisitions, with no failures.
• there has been no loss of any senior management through the integration of the acquisitions.
• they now have distribution into every significant medical facility in Australia and have not yet harvested any strong benefit of cross marketing of products (therefore supporting strong organic growth for some time to come).
• they have just become the preferred bed supplier to Blue Cross. There was a suggestion that in the near future they are going to commence in-house production of age care beds. They already in-house produce some products such as stainless steel hospital shelving. They employ 25 people in a manufacturing warehouse in Ringwood.
• they see a healthy pipeline of possible acquisitions and have an active evaluation team.
I walked away thinking these guys are in a sweet spot already, and it won't be long before we see more deals, because that is the only way they will hit their 2018 aspirational revenue target.
PGC is the strongest stock in my portfolio as far as I am concerned.
Cheers
Gosouth
PGC Price at posting:
91.0¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)