We rate Citadel's management team and growth prospects

OC Funds Management

One IPO that has impressed the OC Funds investment team is The Citadel Group (CGL), which listed on the ASX in November 2014. CGL is a company that specialises in enabling an organisation’s knowledge capital by integrating systems, people and processes to provide information on an anywhere-anytime basis. The company has two key divisions, namely technology and education. We are particularly attracted to the larger technology division which services a number of high quality public and private sector clients under managed services contracts which provide predictable, recurring revenue streams. The company recently announced the transformational acquisition of PJA Solutions, a leading provider of managed technology services to the Australian health and pathology sectors. We forecast that the strategically sensible acquisition will increase the company’s EBITDA by over 80% and will be EPS accretive in the order of 40% (assuming no synergies) in FY16. We rate the management team highly and believe that the company’s pipeline of organic growth opportunities is solid.


1 stock mentioned

OC Funds Management
OC Funds Management

OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment