In the Nov update management states FY 15 PBT margins will be similar to FY 14 - 16.6%. On these metrics
without adding interest for EBIT on the $75M to $80M revenue guidance you get $12.45 to $13.28 EBIT.
Guidance given in December 6 weeks later is $9M to $11M EBIT so its a downgrade. Each 1% swing in staff utilization equates to $800,000 EBIT from a broker report. EPS growth for 2015 was mentioned as well which at this stage will be flat. It looks very cheap at the moment but the market isn't buying the story as they fear more bad news is on the way. Have RXP been too far ahead of the curve to win contracts , doubling staff numbers just as the economy is starting to tank and company's / government cancel projects ? Like a mining services company without the heavy machinery. Not a great space if you have to staff up, show you have the expertise to win the contracts then after winning the client can delay indefinitely while you have all these staff "on the bench" waiting around for clients to give the go ahead.
RXP Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
