Positives Comments from chairman: "I have every expectation that the Diploma Group will end the year in a stronger position than the one we currently occupy." Page 5.
Negatives: Comments from Managing director/CEO "In 2010-11 the Diploma Group recorded an after-tax loss of $0.4 million, with revenue of $144 million." Page 6.
"During the current year the Company breached a financial covenant whereby it was required to maintain a minimum gearing ratio of 25% calculated as shareholder funds divided by total tangible assets." Page 64.
To have revenue of $144 million and make a loss is unacceptable in my opinion. Breaking a financial covenant is also unacceptable in my opinion. The top 3 directors together took home $1.5 million. Need I say it??? (Perhaps a cost savings measure would be to cut that their salaries in half. That way they would have made a profit!!!)
The funds that they haven't received for some of their completed projects hopefully will help push it back into positive territories.
In the end, a little disappointed but hopeful, so I'll stay with them for the time being.
Any other comments (based on facts - ;-) )???
DGX Price at posting:
6.6¢ Sentiment: Hold Disclosure: Held
