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(31-05-2024, 12:21 PM)weijian Wrote: Centurion's customers are not very happy that accommodation costs have increased, with Nordic Group as an example, believing that the cost increases will work itself out in due time. Nonetheless, "hope" is not a good thing to depend on though.
Hi weijian,
I beg to differ with Nordic Group's view. Costs is a function of revenue. As your revenue increases, you should expect higher costs. Increasing productivity and automation should be factors that needs to be considered before doing acquisitions to increase revenue, and not after.
Frankly speaking, their issues is mainly due to their many acquisitions done during a short period of time. All these businesses need time to integrate their processes and systems back into the group to be cost efficient. Initial bump in revenue and profit had gone, now it is back to the price to be paid for doing fast revenue bump up through acquisitions.