You might remember that in August 17 Sophisticated investors kicked in $21m at 80.5 cents a share based on a forecast combined EBITDA of $24m to acquire The Works..
I personally don't have a problem with the profit dropping $1.6m while The Works people were integrated into RXP. every chargeable hour lost, meeting and greeting and settling in, is a big $ loss when a companies business is personal services.
It seems they were settled in but the 4th qty and the combined business earn't $5.5m of EBITDA, which is not far off the $24m PA that the combines business was forecast to earn.
I bought in thinking that this could be a 12 month 2 bagger and I personally think its on track to achieve that.
The 2 cent dividend is a bonus
RXP Price at posting:
54.5¢ Sentiment: None Disclosure: Held
