2 Stocks in a Troubled mode – RCR and LVH

3 min read | August 28, 2018 06:20 PM AEST | By Team Kalkine Media

Financials and Updates

RCR TOMLINSON LIMITED (ASX:RCR) - As at August 28, 2018 RCR is looking to raise approximately $100 million from the Entitlement Offer. Under its working capital facilities, RCR’s financiers have agreed to make an additional $25 million available, to support RCR’s working capital requirements with a reduction in the bank guarantee of $25 million. Including cumulative write-downs of $57 million on the Project and a statutory net loss after tax of $16.1 million, RCR has reported an Underlying EBIT loss of $4.2 million as at June 30, 2018. As per the audit report, the group recorded a loss of $16.1 million for the year. The stock has currently been suspended but was last trading at a market price of $2.800 and with a flat daily price change as at August 28, 2018. The stock has however, undergone a performance change of -25.53% over the past 12 months. The P/E is 15.640 and EPS is still on a positive side 0.179 AUD which is associated to profits and dividends scenario.

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LIVEHIRE LIMITED (ASX:LVH) - On its talent acquisition alone, LVH has currently spent $240 billion each year in the US Driving escalated costs, direct revenue loss, and impediments to workforce transformation for companies, average time to hire is more than twice i.e. 68 days that of 5 years ago. Increasing from 2% to 16% over the next 3 years, were the talent acquisition spends on technology. The FY 18 revenue is currently at $1,651,000 up from $776,000 in FY 2017 with cash receipts of total $2,007,000 up from $927,000 in FY 2017. The enterprise value is currently at $106.8 million. Several low value clients who had an average revenue per client of $7,201 and did not fall within ideal client profile were churned during FY18. The stock was trading at a market price of $0.470 and with a daily price change of -$0.050 as at August 28, 2018. The stock has however, undergone a performance change of -25.53% over the past 12 months. The P/E is 15.640 while the EPS is still on a positive side at 0.179 AUD with which company expects some future growth.

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