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27.5¢ rxp services limited

RXP Broker Data, page-48

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Beany72

3,285 Posts.

5

15/07/17

19:17

Post #: 25887615
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Originally posted by xmanrocks ↑

I know some investors have concerns about RXP's organic growth being achieved compared to acquisition growth.
However at the end of the day does it really matter.

For many growth tech companies organic growth can come at a huge cost to EPS.
There certainly is nothing wrong with acquisition growth especially if you can show quick EPS growth with it.
Indeed it is a good reflection on the management of the company to show the ability to seek out value adding clip on businesses and to integrate them with the current business to procure growing revenue's and growing EPS.
Looks like management are doing a very good job of this and showing patience with the funding they have in place to acquire new assets.
IMHO this share remains very much under valued.

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RXP issued guidance for FY17/18 of +10-15% revenue and 13-14% EBITDA margin. Do you feel this implies an acquisition will be happening in FY17/18? If revenue for 2nd half comes in ~$80m I would say no.

RXP Price at posting: 84.0¢ Sentiment: Buy Disclosure: Held
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