Publish date: Sat, 23 Jan 2016, 11:44 AM
When I wrote Mercury Part 1 on 18 January 2016, I mentioned that I was not particularly comfortable about growing by M&A :
Not withstanding the above, I am happy to report that Mercury announced on Friday that it has just secured RM106 mil contract :
This latest job win does not really have much impact on Mercury's fundamentals as it is essentially part of the RM6.6 mil net profit guaranteed by the Vendor of the construction division.
However, it does put some flash on the skeleton. Before this, I was a bit unsure about the direction of the new division. Now at least I know that the Vendor is putting in serious effort to nurture it so as to meet the annual RM6.6 mil profit guarantee.
Hopefully by end 2017, the new division will have gained enough traction to stand on own feet and become a stable profit contributor to the group.