The electrical maintenance biz have close to double the EBITDA margins than the "body shop" biz so in my opinion it's an excellent move. Estimate they will have $25M to $30M revenue coming in from Cable Logic and KP Electric, the majority of which will be recurring revenue with MSA's and maintenance contracts. The mining services contracts will eventually be awarded but they are being prudent in not accepting loss making contracts where others are. It's tedious waiting for contract awards but they will come through at some point and in the meantime they will build up KP Electric/Cable Logic via organic growth and acquisitions.
TPP Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held