The decision by the ASX to reduce the reporting season from five weeks to just three has caused an incredible deluge of results with about 400 pouring in yesterday on the last day of the season.
As always, there are plenty of juicy yarns tucked away in the smaller, struggling companies and we always like to take a look at the David Koch-associated outfit Palamedia. Our regular Kochie watcher writes:
Well Crikey, it looks as if Palamedia has made some big improvements, but are they sustainable? A $1 million rise in revenue is a good result and had the impact of some one-offs, but my concern is the extremely high turnover in staff – some 70% in the last 12 months.
The new sales-manager has been given the “employ as many as you can to get the sales up” mandate – which makes me a bit anxious.
And the most telling thing of all is that director John McNIven has stumped up his own money, unsecured I might add, to keep the thing afloat. He must really believe it’s going to make it. But wait, he’s charging an annual rate of 20 per cent on his money – payable monthly.
The banker in him can’t help but quantify the risk! And this may end up being converted to equity – watch this space.
The word is that Lexis Nexis is buying Palamedia’s ABIX business for $1 (one dollar) and that the rest of the titles are being shopped in the market. It looks as if the second half is going to be the one that determines if McNiven gets any of his money back.