Yes, @Wini, I do agree. This is a heavily concentrated family company masquerading as a Public Company - why they don't take it public, I don't know.

The maintenance costs of listing and public scrutiny, plus the apparent lack of need for capital, suggest they would be far better off flying below the radar in these more challenging, higher-competition times for the recruitment industry.

This, of course, gives them some leverage to 'shift the furniture' to suit themselves within reason. Obviously, they want to present a rosy picture of consistency and reliability, and they have done so for quite a number of years. I've got my eye on that suspicious build-up in debtors at the end of FY25... some $3.5m above normal.

Was this a bringing forward of revenue and profits to square away a better, more consistent FY25, in which case 1HFY26 will be the sufferer? If not, 1HFY26 cash flows should actually be higher than the $10m they are claiming as their debtors normalize—something to keep an eye on when the 1H results are out.

The additional competition will lead to sharpened pencils and lower margins. Everyone wants to chase the Tech sector for its growth potential, and the recruitment industry is no different.

My thought was that HIT, because of its strong government connections, would get some form of preference as the 'propeller heads' workforce required in defense and cybersecurity grows. This extra revenue at a lower margin would still give them a good NPAT, eps, and dividend flow (which is of interest to me and my SMSF). Indeed, if the number of ads on its website correlates with revenue, then revenue should increase in 1HFY26; but, as above, margins are the issue as well as the extra costs of doing business.

And given that my career days are over, I can assure you that lack of interest/drive does occur, and a level of comfort takes over. I wonder what Ray's thoughts are here?

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