New Risk • Aug 08
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 13% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$26m free cash flow). Earnings have declined by 9.4% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (13% increase in shares outstanding). Market cap is less than US$100m (AU$52.4m market cap, or US$34.4m). お知らせ • Apr 18
Macmahon Holdings Limited (ASX:MAH) agreed to acquire Decmil Group Limited (ASX:DCG) fromThorney Investment Group Australia Pty. Ltd., Horley Pty Ltd and others for AUD 100 million Macmahon Holdings Limited (ASX:MAH) agreed to acquire Decmil Group Limited (ASX:DCG) fromThorney Investment Group Australia Pty. Ltd., Horley Pty Ltd and others for AUD 100 million on April 16, 2024. Under the scheme, Decmil ordinary shareholders are to receive AUD 0.30 cash per share, and Decmil RCPS holders are to receive AUD 0.343 cash per share. Azure Capital and Highbury Partnership acted as joint financial advisers and HWL Ebsworth as legal adviser to Macmahon. Decmil is being advised by Steinepreis Paganin and MA Moelis Australia. New Risk • Apr 17
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 22% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$26m free cash flow). Share price has been highly volatile over the past 3 months (22% average weekly change). Earnings have declined by 9.4% per year over the past 5 years. Minor Risk Market cap is less than US$100m (AU$44.3m market cap, or US$28.5m). Reported Earnings • Feb 26
First half 2024 earnings released: AU$0.012 loss per share (vs AU$0.016 loss in 1H 2023) First half 2024 results: AU$0.012 loss per share (improved from AU$0.016 loss in 1H 2023). Revenue: AU$215.3m (down 16% from 1H 2023). Net loss: AU$1.84m (loss narrowed 26% from 1H 2023). Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 33% per year, which means it is significantly lagging earnings. お知らせ • Feb 13
Decmil Group Limited to Report First Half, 2024 Results on Feb 22, 2024 Decmil Group Limited announced that they will report first half, 2024 results on Feb 22, 2024 New Risk • Aug 23
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$24m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$24m free cash flow). Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 32% per year over the past 5 years. Minor Risk Market cap is less than US$100m (AU$27.2m market cap, or US$17.5m). Reported Earnings • Aug 23
Full year 2023 earnings released: AU$0.012 loss per share (vs AU$0.68 loss in FY 2022) Full year 2023 results: AU$0.012 loss per share (improved from AU$0.68 loss in FY 2022). Revenue: AU$489.2m (up 30% from FY 2022). Net loss: AU$1.84m (loss narrowed 98% from FY 2022). Over the last 3 years on average, earnings per share has increased by 75% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Board Change • Aug 19
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Non-Executive Director David Steele was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. New Risk • Jun 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 17% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (17% average weekly change). Earnings have declined by 43% per year over the past 5 years. Minor Risk Market cap is less than US$100m (AU$22.6m market cap, or US$15.1m). Reported Earnings • Feb 26
First half 2023 earnings released: AU$0.016 loss per share (vs AU$0.026 loss in 1H 2022) First half 2023 results: AU$0.016 loss per share (improved from AU$0.026 loss in 1H 2022). Revenue: AU$256.1m (up 13% from 1H 2022). Net loss: AU$2.48m (loss narrowed 37% from 1H 2022). Revenue is forecast to grow 19% p.a. on average during the next 2 years, compared to a 6.7% growth forecast for the Construction industry in Australia. Board Change • Jan 10
High number of new and inexperienced directors There are 4 new directors who have joined the board in the last 3 years. The company's board is composed of: 4 new directors. No experienced directors. No highly experienced directors. Independent Chairman of the Board Andrew Barclay is the most experienced director on the board, commencing their role in 2020. The company’s lack of experienced directors is considered a risk according to the Simply Wall St Risk Model.