From the SKE thread but worthwhile following PRG Programmed Maintenance Services

When looking at at outsourcing related businesses a year ago I came up with a subset of PRG TEM UGL SKE SPT and TSE

Of those SKE and PRG (Programmed Maintenance) seemed the best of the group and I ended up taking PRG on board - mainly because PRG's EBIT margin of 13% was significantly higher than SKE's 4% and because PRG was trading at a lower PE than SKE at the time.

In addition I felt more comfortable with PRG because of business dealings here and in OZ and one could keep ones eyes and ears on how they were progressing.

As it has turned out both SKRE and PRG have done very well over the last year -but SKE did do a little better. when it put on a surge since acquiring another business.

I expect PRG to be a good steady performer - it's PE is creeping up but only 13 times forecast earnings. There is no real reason to expect the forecast double digit earnings growth not to eventuate as a lot of future income is to a certain extent 'locked' in.




Occasionally you do hear talk that they could be a takeover target for somebody like Spotless. After all PRG has a relatively low market cap at $200M - the smallest of all the companys mentioned.

I'll stick with it for a while longer .... but sec still watching SKE as well.

(And no - PRG isn't Pacific Retail)