Sharechat Logo

Provenco could do much better

Friday 19th September 2003

Text too small?
Provenco Group's share price has flatlined lately despite news of the loss of one contract and the winning of another.

Neither appeared to be substantial, although the company doesn't make the impact clear.

Subsidiary APL Plus lost an applications support contract that was a major part of its business but not a material part of the group's. Provenco last year had revenues of $47 million.

The retail automation division this week won a $4.5 million contract to supply an "integrated service automation solution" for "one of its international clients," starting early next year.

Provenco's June-year profit announcement was a masterpiece of the art of trying to put a positive spin on a dog of a result. The profit before unusuals and tax was $1 million, down from $2.5 million the year before, and a $6.6 million writedown of intellectual property took the bottom line to a $6.4 million loss.

The stock exchange release dwelt on the improvement in second-half operating earnings, which were $843,000, compared with $183,000 in the first half.

With a cost of capital of about 16%, however, the company is going to have to do a lot better than that before investors are impressed.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar sags after avalanche of data and central bank action
Fonterra board starts planning chair succession
Fulton Hogan keeps Australian civil construction unit
Time for congestion pricing has come - NZIER
Colliers defends KiwiBuild as 'far from a colossal failure'
Pushpay shares rise as cost-cutting upgrades earnings guidance
20th September 2019 Morning Report
NZ dollar weaker against British pound on EC president's Brexit optimism
Todd plans Kapuni drilling campaign
MARKET CLOSE: NZ shares gain; appetite for KFC helps Restaurant Brands hit record

IRG See IRG research reports