Looking ahead short term - did someone point to lower turnover ?
To reach therefore higher GP & bottom line - that tends to point to higher margins..
Is that possible in today's times & competitive environment or wishful thinking ?
STU have some good brands & businesses in the fold.
Many initiatives, including co-locating into shared STU premises should have been done
long ago (while Board were apparently dreaming at the helm) and not after or forced
as a result of things hitting the fan badly ..
The proof in performance & how well Directors ultimately pull things together
to regain where they were at a few years back before all the carnage, and better
above those levels will be what watchers will be looking for.
We have already had one false start on recovery tracks - with interim div, then
things abruptly slid backwards the next half with no next Dividend paid.
The current Board & many of the top brass were also onboard through the carnage
of recent years, so they also need to now prove they are up to what is expected of
them in clawing STU back out of the hole and staying there with solid performance
They have already seen wiped out in the watch of many of them - over half the
value STU had in Shareholder Funds, all of the Cap Raise a few years back
which resulted in the forced leaning down to get to the current slimmer beast, so
their credibility is very much on the line & current times suggest there is no
room for repeats or excuses on why they should be capable of delivering up
and substantially keeping STU's performance at or above those enhanced levels ..
The ultimate challenge - Can STU's Board & Top Brass pull things above the $1.75 SP
that was at one point on the table - which they didn't like before it was withdrawn ?
IMO - that is the line in the sand which STU's Board & Management must reach or exceed
and hold to ultimately prove they are worthy of their seats & positions with STU
If not, then new fresh talent required which is more vibrant & capable of performance
execution & delivery without further carnage.
After all, how difficult is it selling reasonable quantities of nut bolts & steel etc at a reasonable
margin and getting it closer to perfection than the beast has managed in the past how many
years it has been in existence ?
Discl: hold a parcel
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