I do not think EMC should be sold for the following reasons:
- Accounting Tricks - FY16: $10M loss; FY17: $8.2M loss; FY18: $8.9M loss. They appear to be doing bad but this excludes revenue from Newcastle ($7M) + Elizabeth ($3M) - making FY19: profit-making? It appears to me in the Preliminary FY18 Report they included $12M cost of goods sold without including the revenue. Dick Smith chicanery? No reference to either Newcastle or Elizabeth in the report.
- Write-downs - $12M ($9M is goodwill) - i.e. if we do not sell: neither impairment nor goodwill write-offs.
- Off-grid microgrids - WA power companies must be implementing some soon - on the agenda for years.
- LendLease 200MW solar farm - EMC may be contracted (or another company) or they will have learned enough from EMC over the three years to implement it themselves (which CCE should also have done depending on the level of integration i.e. learned from EMC everything they know)
- From "The Innovator's Dilemma": disruptive technologies have low profit-margins to begin with. This seems to align with first half FY19 revenues of the disruptive microgrid technology exceeding the full year FY18.
- Then there is Kalbarri due for completion in the latter half of FY19
- Continue with efficiencies (e.g. better integration of the two businesses)
