The financials of the business look ok, but I do get concerned...

The financials of the business look ok, but I do get concerned that things could turn ugly if existing contracts wrap up.

One of the biggest issues is that no one knows about these guys in WA. I have been to a few trade and industry events and these guys don't even rock up and market themselves. I think they went to Diggers for the first time this year, but I don't even think they had a stall to sell themselves.

The reality is that the security arm is what underpins the business. If they lost any contracts there, the whole business could unravel.

They jumped on KMH after landing that big Covid-19 hotels security contract, which was really smart. But they are going to struggle to win any big mining contracts up there as they don't have the size or capacity required to deliver for a Rio, BHP, MinRes etc. They want to rival NRW, MACA etc but the reality is they don't have the capital to do it.

The car hire side of the business also makes me nervous. They have sunk a lot of capex in that space, but again, they will never rival the Avis etc as they don't have stands at the key airports up north - Karratha, Newman, Port Hedland etc. Businesses want simplicity and to be able to land and grab their car.

Take a look at their market reporting, and you'll see they are only doing the bare minimum - they never announce anything exciting (contracts etc).

I like the business model, but I get nervous they aren't selling themselves.