We rate Citadel's management team and growth prospects
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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.
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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
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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