Southern Cross Electrical (SXE)

[finicky]

I'll be keeping an eye on this one. It has announced a very disappointing H1 guidance today - negative $2m underlying. Predicts pick-up H2.
On the face of it, a tempting mine servicing company with other irons in the fire like a newly acquired telecommunications business that does work for NBN.
SXE has no debt, a net cash position of $41m as at its September presentation (post Datatel acquisition).
Achieved strong ROE during the boom years.

Chart was going well till today, see what transpires.

Southern Cross Electrical Engineering Limited (SCEE) advises that due to the slower than expected ramp-up
of work in the first half it forecasts an underlying net loss after tax of circa $2.0m for the half year ended 31
December 2016. This forecast result has been impacted negatively from several sectors in which SCEE operates: Significant mobilisation for our oil & gas projects has now commenced but was later than SCEE had
originally envisaged; While tendering activity remains robust in the mining and utilities sectors, certain clients have been
slower than anticipated to release contract packages; and
Datatel, SCEE's newly acquired telecommunications subsidiary, has experienced a temporary slow-down
of work in the roll-out of the NBN in Western Australia. Expansion on the East Coast into Tasmania,
Victoria and Queensland has only recently commenced and is forecast to accelerate.
However the Company remains confident in the underlying flow of work in all sectors in which it operates
and forecasts a profitable H2 leading to an anticipated result for the full year of an underlying FY17 NPAT in
the range of $4.0m-$5.0m