MLG future, page-19

Another absolutely abysmal performance! Yes higher revenue but significantly lower margins, higher debt and no dividend. It seems to me the management here want to chase additional revenue at any cost. It does not make sense to me. Its not about about revenue its about margin. Plain and simple. There is so much risk in the business they are in and it is highly cyclical. Continuing down the path they are travelling is placing the entire business and its shareholders at risk of ending up with a large haircut or worse

And conveniently after the full years announcement results a trading halt with a major contract result. Call me cynical on the timing of that but i view it as a negative. More borrowings, more employees when by their own admission recruiting is extremely difficult, more sites, more management and MORE RISK. Another big ramp up will cost alot to get going with limited revenue for the first quarter or 2.

Last EOY results showed they had $9 odd million in the bank in cash, this year $200 odd thousand. Payables at $51.6M odd and receivables at $46.2M odd. Debt has increased substantially and NPAT has dropped by about 60% odd. Surely has has alarm bells ringing? And they have just won another large job. Near on a guarantee what they will say on Feb when they report the half yearly's.

I have waited long enough for this to turn around and it seems highly likely this will happen anytime soon-if ever. All i can see is further SP destruction to happen due to poor management.