MHM Automation - MHM

[black knat]

MGL.Mercer Group Ltd.64,520,706 shares on issue.Market cap at 25 cents is $16,130,177.
Good to see them making a profit.Has it taken 20 years or longer.?
After tax profit of $ 447,000 on turnover of $27,864,000 is very slim margins/pickings.
76% of revenue is now coming from recent acquisitions H&C and Milmeg.
Positive was the strong cash flow of $2.6 mil and the big reduction of debt down to $2.2 mil.
Fabrication still has issues.
So current 6 months profit is $.447 mil.Say they managed to get it up to $1mil for the year, the PE ratio would be 16.1.
Now I am not going to pay that for this type of business, in the sector they are in.
Also remember they are not paying a divie,and if/when they do, it will not be imputated.
This wonderful "window of opportunity" I will leave for others....lol.

No question at a margin for around 1.5% is slim as things stand. Question of whether they can grow revenue without adding further to overhead.