More problems in the engineering and contracting sector yesterday - RCR Tomlinson shares were suspended yesterday on fears about its earnings, while shareholders again sold off Lendlease shares for a second day.
Now for the big test for RCR Tomlinson’s survival attempt – big shareholders have ponied up $70 million, which is enough to keep it alive, but retail shareholders are going to be asked to contribute another $30 million to the $100 million issue at $1 a share.
Target $3.53 (was $2.94). The broker thinks the company is on track to deliver close to 20% earnings growth in FY13 on the back of a solid performance on the Fortescue project. The problem is, if there is one, is that the company needs to come up with $250m in revenue in FY14 to replace Fortescue.