Cyclical or structural shift

Cyclical or structural shift? It appears that conditions remains challenging for SMS Management and Technology (SMX). The Company delivered a profit result of just over $5million from revenues of over $150million for the half year. Whilst there were a number of once off items within the result the forward commentary from management would hardly fill you with confidence. The outlook commentary is littered with comments about management restructure and withdrawal from unprofitable sub contracts. in recent months, the Company has observed a slight improvement in business confidence with more clients taking tentative steps with new initiatives; however, the macro-economic environment remains somewhat fragile. Consultant utilisation has been below our desired levels and we are taking steps to ensure that utilisation improves in the second half. It seems that the days of highly paid consultants clocking up billable hours with corporate clients are a thing of the past. (VIEW LINK)