The result was nothing unusual for PEO and no surprise. Take away the sale of the Perth data centre and you have another loss and from reduced gross revenue. Small share holders have continued to sell and drive the price down rather than wait for the share buy back to sell their shares. The poor result should ensure PEO has no trouble finding takers for the share buy back which would be what they want.
Why the share buy back? So they can use up the seven million in cash and have nothing left to fund their annual losses? They certainly won’t be able to have another capital raising through a share issue if they run out of money as there would be no takers and they couldn’t expect organic growth to eventually result in a profit as they will run out of money long before that ever occurred.
The only thing that could save PEO is something like a takeover or merger. Is one planned with the sale of the Perth data centre and share buy back part of the preparation? Are they running the company down so they can buy out the small share holders cheaply before they pull a rabbit out of a hat and turn things around for the benefit of the major shareholders? Who knows?
PEO
people telecom limited
