Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. Independent Non-Executive Chairman Darren Perry was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 26
First half 2024 earnings released: EPS: AU$0.023 (vs AU$0.014 loss in 1H 2023) First half 2024 results: EPS: AU$0.023 (up from AU$0.014 loss in 1H 2023). Revenue: AU$149.2m (up 15% from 1H 2023). Net income: AU$1.10m (up AU$1.76m from 1H 2023). Profit margin: 0.7% (up from net loss in 1H 2023). The move to profitability was driven by higher revenue. Revenue is forecast to grow 6.1% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Commercial Services industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 140 percentage points per year, which is a significant difference in performance. New Risk • Feb 23
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.4x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.4x net interest cover). Share price has been highly volatile over the past 3 months (23% average weekly change). Minor Risks Significant insider selling over the past 3 months (AU$1.7m sold). Market cap is less than US$100m (AU$52.6m market cap, or US$34.5m). Buying Opportunity • Nov 30
Now 25% undervalued Over the last 90 days, the stock is up 51%. The fair value is estimated to be AU$0.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 98%. For the next 3 years, revenue is forecast to grow by 6.1% per annum. Earnings is also forecast to grow by 42% per annum over the same time period. Buying Opportunity • Oct 23
Now 23% undervalued Over the last 90 days, the stock is up 124%. The fair value is estimated to be AU$0.73, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 98%. For the next 3 years, revenue is forecast to grow by 6.1% per annum. Earnings is also forecast to grow by 42% per annum over the same time period. Announcement • Oct 06
Millennium Services Group Limited, Annual General Meeting, Nov 12, 2023 Millennium Services Group Limited, Annual General Meeting, Nov 12, 2023. Agenda: To consider the re-election of a Director. Reported Earnings • Aug 22
Full year 2023 earnings released: EPS: AU$0.013 (vs AU$0.048 in FY 2022) Full year 2023 results: EPS: AU$0.013 (down from AU$0.048 in FY 2022). Revenue: AU$265.8m (up 2.0% from FY 2022). Net income: AU$602.0k (down 73% from FY 2022). Profit margin: 0.2% (down from 0.9% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Commercial Services industry in Australia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 91 percentage points per year, which is a significant difference in performance. Buying Opportunity • Jul 03
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 18%. The fair value is estimated to be AU$0.35, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company became loss making. Reported Earnings • Feb 24
First half 2023 earnings released: AU$0.014 loss per share (vs AU$0.042 profit in 1H 2022) First half 2023 results: AU$0.014 loss per share (down from AU$0.042 profit in 1H 2022). Revenue: AU$129.7m (down 1.6% from 1H 2022). Net loss: AU$660.0k (down 134% from profit in 1H 2022). Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Commercial Services industry in Australia. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 5% per year. Announcement • Feb 07
Millennium Services Group Limited Announces Appointment of Amarjit Sidhu as Chief Financial Officer, Effective 1 March 2023 Millennium Services Group Limited announced the appointment of Amarjit Sidhu as Chief Financial Officer (CFO), effective 1 March 2023. Amarjit's succession to the role of CFO, follows over five years' experience with Millennium, most recently as Head of Finance (2IC to CFO), responsible for ASX reporting, managing the Group's independent audits, management reporting, treasury, forecasting and taxation. Prior to Millennium, Amarjit spent nine years in audit and taxation with accounting firms across Melbourne and the United States servicing clients in the manufacturing, property development and education sectors. Amarjit has considerable experience in financial control and management, corporate governance, business partnering, taxation and treasury in the pharmaceutical, manufacturing and labour-hire industries. He has also performed significant roles in corporate acquisitions and restructures. Amarjit has more than 25 years' experience in finance-related roles. He is an Australian Certified Practising Accountant (CPA), has completed an MBA at Deakin University and holds a Bachelor of Commerce (Accounting & Finance) from Monash University. Announcement • Dec 06
Millennium Services Group Limited Announces Resignation of Michael Constable as Chief Financial Officer, Effective 28 February 2023 Millennium Services Group Limited announced that Mr. Michael Constable is stepping down from his position as Chief Financial Officer to take up other opportunities outside of the company. Mr. Constable's final date of employment will be 28 February 2023. Millennium CEO, Royce Galea commended Michael for his significant contribution and commitment to the Company, and for his support to the Board and senior management throughout his service. Buying Opportunity • Nov 17
Now 23% undervalued Over the last 90 days, the stock is up 22%. The fair value is estimated to be AU$0.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 6.1% in 2 years. Earnings is forecast to grow by 166% in the next 2 years. Buying Opportunity • Nov 09
Now 23% undervalued Over the last 90 days, the stock is up 45%. The fair value is estimated to be AU$0.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 6.1% in 2 years. Earnings is forecast to grow by 166% in the next 2 years. Announcement • Oct 07
Millennium Services Group Limited, Annual General Meeting, Nov 30, 2022 Millennium Services Group Limited, Annual General Meeting, Nov 30, 2022. Agenda: To consider re-election of director. Reported Earnings • Aug 18
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: AU$0.048 (down from AU$0.38 in FY 2021). Revenue: AU$261.6m (down 4.4% from FY 2021). Net income: AU$2.22m (down 87% from FY 2021). Profit margin: 0.8% (down from 6.3% in FY 2021). The decrease in margin was primarily driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 30%. Over the next year, revenue is forecast to grow 1.6%, compared to a 8.0% growth forecast for the Commercial Services industry in Australia. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Feb 28
Millennium Services Group Limited Announces Executive Changes Millennium Services Group Limited has announced that Mr. Scott Alomes, CEO Millennium, has tendered his resignation and will be leaving Millennium at the end of March. Mr. Royce Galea will be the interim CEO and Managing Director. Having been one of the Founders of the business he is very familiar with the customers, staff and strategy and will continue to drive the business forward on the platform already established. Board Change • Oct 31
High number of new directors Independent Non-Executive Chairman Stuart Grimshaw was the last director to join the board, commencing their role in 2021. Reported Earnings • Aug 20
Full year 2021 earnings released: EPS AU$0.38 (vs AU$0.36 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: AU$273.7m (up 6.4% from FY 2020). Net income: AU$17.4m (up 4.6% from FY 2020). Profit margin: 6.3% (down from 6.4% in FY 2020). Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Recent Insider Transactions • Jul 01
Insider recently sold AU$389k worth of stock On the 24th of June, Wayne Crewes sold around 695k shares on-market at roughly AU$0.56 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of AU$293k more than they bought in the last 12 months. Recent Insider Transactions • Apr 26
Insider recently bought AU$97k worth of stock On the 20th of April, Michael Sheehy bought around 158k shares on-market at roughly AU$0.61 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Announcement • Mar 05
Millennium Services Group Limited Appoints Darren Perry to the Board as Independent, Non-Executive Director Millennium Services Group announced the appointment of Darren Perry to the Board as Independent, Non-Executive Director. Perry has a long and distinguished career in employment and industrial relations law. He is currently Partner International Employment Law at Seyfarth Shaw LLP; an international legal firm with 17 offices globally and over 900 lawyers. Perry brings with him terrific expertise across a wide range of human resources and legal issues. He has been at the forefront of advising major employers on collective bargaining strategies, responses to industrial action, and major workplace projects including automation and compliance reviews. He has also worked extensively with companies around corporate governance, executive contracts and remuneration and handling disputes relating to executive termination. Executive Departure • Mar 03
Independent Non-Executive Chairman Roger Smeed has left the company On the 28th of February, Roger Smeed's tenure as Independent Non-Executive Chairman ended after 2.4 years in the role. As of December 2020, Roger personally held 661.73k shares (AU$364k worth at the time). Roger is the only executive to leave the company over the last 12 months. Announcement • Feb 26
Stuart Grimshaw to Become the Chairman of Millennium Services Group Limited, Effective March 1, 2021 Millennium Services Group advised that following the MIL Chairman, Roger Smeed's recently announced decision to retire at the end of February 2021, Mr. Stuart Grimshaw will become the MIL Chairman effective 1st March 2021. Reported Earnings • Feb 25
First half 2021 earnings released: EPS AU$0.37 (vs AU$0.018 loss in 1H 2020) The company reported a decent first half result with improved earnings and profit margins, although revenues were flat. First half 2021 results: Revenue: AU$135.0m (flat on 1H 2020). Net income: AU$17.1m (up AU$17.9m from 1H 2020). Profit margin: 13% (up from net loss in 1H 2020). Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Is New 90 Day High Low • Feb 17
New 90-day high: AU$0.65 The company is up 59% from its price of AU$0.41 on 19 November 2020. The Australian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is flat over the same period. Is New 90 Day High Low • Jan 20
New 90-day high: AU$0.63 The company is up 49% from its price of AU$0.42 on 22 October 2020. The Australian market is up 10.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 5.0% over the same period. Is New 90 Day High Low • Jan 04
New 90-day high: AU$0.57 The company is up 63% from its price of AU$0.35 on 06 October 2020. The Australian market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 6.0% over the same period. Announcement • Dec 02
Millennium Services Group Limited Announces Retirement of Roger Smeed as Chairman and as Director Millennium Services Group Limited announced that Roger Smeed has announced that he will retire as the Chairman and as a director of the company on release of financial year 2021 half year results in February 2021. The company will make an announcement on a new Chairman prior to Roger's departure in February 2021. Mr. Smeed joined the company as Chairman in September 2018 and has led the Board for the last 2 years. During that time, the Company has implemented significant improvements including the appointment of the cur ent CEO and CFO and a focus on compliance and higher margin contracts, which have contributed to a substantial turnaround in the company's financial position. Mr. Smeed has advised the Board that he came to his decision having achieved his objective of leading the company through this extensive and successful turnaround. Mr. Smeed felt it is the right time for him to hand over his role with the company and for him to concentrate on other busines interests. Mr. Smeed has agreed to continue to work with the Board in an advisory capacity for 12 months after he leaves the Board in late February 2021. Announcement • Nov 24
Millennium Services Group Limited Announces Non-Executive Appointments to the Board Millennium Services Group Limited announced, the appointment of Stuart Grimshaw and Rohan Garnett to the Board as Independent, Non-Executive Directors. Mr. Grimshaw has a long and distinguished career in financial services. Most recently he was Chief Executive Officer and Board Member of EZCORP a Nasdaq listed company which he originally joined in November 2014 as Executive Chairman. Prior to joining EZCORP, he was Managing Director and Chief Executive Officer of Bank of Queensland Limited. Mr. Garnett is presently Executive Manager, Government and Public Affairs at Qantas Airways. Rohan has held senior Australian and International management positions with Qantas, Jetstar and British Airways. Rohan has an Honours degree in economics from Sydney University; has served as a non-executive director on a number of boards and is an experienced company director. Is New 90 Day High Low • Nov 23
New 90-day high: AU$0.44 The company is up 14% from its price of AU$0.39 on 24 August 2020. The Australian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 5.0% over the same period. Announcement • Aug 24
Millennium Services Group Limited Auditor Raises 'Going Concern' Doubt Millennium Services Group Limited filed its Annual on Aug 20, 2020 for the period ending Jun 30, 2020. In this report its auditor, Moore Stephens, gave an unqualified opinion expressing doubt that the company can continue as a going concern. 
