SRG

[galumay]

Originally bought at 67c when they were GCS, merged with SRG and have been as high as 90c, market didnt like merger, contracts were delayed and price was hammered, topped up at 37c, seems to be mispriced to me with liklihood of a much improved year going forward. For that to happen though it will need to pick up a lot of extra revenue in the 2nd half, operating cash flow is now negative due to costs remaining static as revenue has been deferred due to delays in contracts. NTA is above the share price so there is that, they will need to hit mid to high point of EBIT guidance to deliver any real confidence in management. I dislike intensley the focus on EBIT & EBITDA in the HY report, in fact earnings are not mentioned at all, that scares me.

Funny to read the HY report this year (2020) Nothing has changed! Still banging on about EBIT & EBITDA - no mention of actual earnings!

[galumay]

FY2020 Deja fucking Vu! AR released and neither it nor accompanying reports/presentations mention anything but EBITDA & OCF. You would actually think the business was profitable if you didnt dig a bit deeper.

In the end the only reference to EPS or real profits in the whole document is the legally required profit and loss whch posts a significant negative EPS.

Crap management running a crap business - and they had the hide to continue to pay a dividend.

I sold out on open, hopefully i have learnt another lesson about poor management and not holding onto businesses when the messaging and execution is so poor.