Quote Originally Posted by Lizard View Post
PEH not on the list yet, but maybe one to make it in the next 12 months.

Listed 2008 at 50cps and acquired environmental consultancy and software type businesses. Got themselves into financial difficulty, particularly after one acquisition supposed to double the size of the business, suddenly ended up in VA a few months later (during the GFC).

Have historically produced about $7m revenue and losses, but HY revenue up 20% to $4.6m, so may see them getting $9-$10m revenue this year. Also maiden HY profit of $154k, but would have been about $465k if litigation costs (associated with failed business) and share based payments were excluded. Market cap $10m at 10cps. Balance sheet now strengthened with support of major shareholders, leaving net debt of $1m at last tally.

Overall, can't decide if they are poor operators or just caught some bad-luck in timing their listing and acquisitions. They seem to employ a lot of bright staff and they should be in a good area with specialist emissions consulting. The bump up in first half profit could be interesting if momentum is maintained in second half.
The third quarter report wasn't too encouraging for PEH, with staff costs increasing and revenues down over the quiet holiday period. Has been barely traded, although someone sold a few recently at 4cps (market cap $3.9m). However, it is now well bid up to 6.2cps, with few sellers in sight. Today's announcement outlines the potential for the business to benefit from the implementation of a new carbon tax in Australia, where they are ideally placed.

Having said that, it is so illiquid that not likely to be of interest to most investors.