gc,Here is how I see it....You may disagree.The PE...

gc,
Here is how I see it....You may disagree.
The PE division/Sys-Mac has been the only growing division.
In the last 5 years Sys-Mac produced CAGR of 46% while the total revenues for the group showed negative CAGR of -3%.
The growth of Sys-Mac has been achieved without any contribution of the 3 start-ups....These start-ups have been sucking capital hence,while revenues are improving, margins appeared unrealistically (or artificially) low.....We can't dismiss Sys-Mac as a low margin struggling business because it is still investing in its growth.
We can't snub the CEO of a business that had CAGR of 46% over 5 years.
The jury is still out as far as the 3 start-up are concerned....They are at commercial stage....Saying that it was short sighted from management is wrong.
IpTec will be the catalyst for Sys-Mac:
# It will force Sys-Mac to sharpen its skills with better machines & talented people.
# it will act as a magnet drawing interest from the region.
# it will be profitable as a stand-alone business....At the same time it will be giving more work to Sys-Mac.
# Sys-Mac will be in an enviable position to pick up promising products for seed capital.
The Hi Tech division of ZGL WILL grow much bigger...Its margins will hugely improve when the start-ups contribute to earnings instead of being parasites sucking capital.