SXE

[galumay]

1H 19 - a solid year, nothing outstanding but good numbers.

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Why will this business be around in 10 years? - Electrical Contractors for large projects will always be required, growth in things like renewables and storage as well as diverisfication and acquisitions have all helped increase my conviction SXE will be round in 10 years. Been around for over 40 years already.

[galumay]

H1 2021 - Very poor result, some of it due to contract delays but still disappointing. If they ccan deliver $400m + revenue for the full year as promised things will look better. Still a problem given the acquisitions they have made, should be do better.

[galumay]

FY 2021 SXE ended up delivering $370m revenue, so a big improvement on H1, but not quite as good as it might have been, overall a reasonable year and the business is essentially debt free aside from performance guarantees and bonds, $50m cash and hopefully a good 2022 ahead. Dividend increased 33%



Assuming no serious Covid impacts this year, the following outlook was provided,

"With a strong order book and visibility of an emerging opportunity pipeline we are targeting FY22 revenue of circa $500m and EBITDA in the range of $29m-$33m."
 

[galumay]

A great H1 2022 for SXE, really good numbers from one of my highest conviction positions. Payed an interim divvy for the first time in 6 years and that puts it on a yield of about 10%! Also dont mention the large component of JobKeeper in the previous comparable period, makes the figures much more impressive when factored in.

[galumay]

As we knew, very strong result for FY2022, only annoyance is the announcement of results posting bull**** earnings and no mention of actual earnings (which were up 10%.)

[galumay]

H1 2023 report was very strong, one of the few you will see this reporting season showing strong growth in earnings on flat revenue. Outlook is guiding for a softer H2 with 10% drop in revenue.