Forum Archive Index - March 2001

Please note usage of the Forum is subject to the Terms & Conditions.

Messages by Date [	Next by Date	Previous by Date ]
Messages by Thread [	Next by Thread	Previous by Thread ]
Post to the Forum [	New message	Reply to this message ]

Printable version

[sharechat] RMG half year result

From:	"Peter Maiden" <pmaiden@xtra.co.nz>
Date:	Sat, 17 Mar 2001 11:56:48 +1300

RMG half year result came out late last night - after most people had gone home for the week. Normal trick of those who have not so good news to announce.

Total revenues of $43M for the six months to December. Still very much a petroleum company with $24M of the revenues coming from that source. Receivables management therefore account for $19M of revenues.

Reported after tax loss of $4M - by the looks of it all from the receivables management side.

Cash flow statement a bit a worry with negative operating cash flows of nearly $8M.

The RMG balance sheet has not improved much over the past six months. Intangibles have increased to a massive $72M and Net Tangible Assets are still negative.

Intangibles are high at $72M and this needs to viewed in the context of only $1.8M showing as amortisation expense. Still an awful lot of goodwill or whatever to be written off - this has to put a strain on future earnings.

I made a few bob on the post-float hype and based on current performance I'm glad I got out when I did. >From this point in time all I can see is the RMG price drifting down - any speculative gains are not going to come through soon.

Receivables management is a growth industry, especially now that a lot of this work is outsourced to the likes of RMG. If RMG are to suceed they need to do well in Australia and that is where their acquisitions have been made. The competition is pretty tough over there though and others seem to be making a better fist of it then RMG..

As such these seem to be a better bets from an investment point of view

Gerry's favourite Collection House Ltd is one. Look back in the forum to see what he has said about them.

Another in this business that has had a bit of talk about recently is Credit Corp (CCP) - price gone from A$0.40 to A$0.56 since mid November and a pretty strong upward trend. Pretty small turnover compared to others but profitable and currently tradng a P/E of 15 odd

Cheers

Peter

Messages by Date [	Next by Date:	Re: Re: [sharechat] WORKING AT THE COAL FACE - QBE result G Stolwyk
	Previous by Date:	[sharechat] AQL .... Fools & Their $ David Ling ]
Messages by Thread [	Next by Thread:	Re: [sharechat] RMG half year result G Stolwyk
	Previous by Thread:	[sharechat] Dolly connection DR ]
Post to the Forum [	New message	Reply to this message ]