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MAD - Mader Group

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Erlang said:
Not enough employees for all the work they have? Surely better than the other way around.

IG? Instagram? That never occurred to me.

I guess this one:

www.instagram.com

Mader Group (@mader_group) • Instagram photos and videos

4,978 Followers, 533 Following, 695 Posts - See Instagram photos and videos from Mader Group (@mader_group)
www.instagram.com www.instagram.com
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Hi @Erlang,

Have you considered the negative effect that having insufficient employees could/will have on profits.

One example that immediately comes to mind is that excessive delays may evoke onerous penalty clauses in a contract.

There will always be a knock-on effect. For example payroll costs could be considerably higher than budgeted as the Company will need to entice employees to the company.

This may well have a negative impact on the share price.

Cheers, Rob
 
Hi @rnr

Thanks for the remarks.

True. I had considered them not getting enough work due to a shortage of workers. But yes, penalty clauses are also a concern.

I don't know where they are need workers. My understanding is that, for example, they've only arrived in, say, Queensland relatively recently, so it would make sense they don't have enough workers there. And, as mentioned above, they have arrived even more recently in Canada.

But, for now, I am comfortable with waiting to see the results in terms of profits.
 
Mader Group released their quarterly update.

1651040589629.png


Record quarterly revenue of $98.1m, up 29% vs the prior corresponding period (‘PCP’) and up 4.3% vs Q2 FY22.
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Closing on $3

  •  Mader reports another record quarterly performance, with revenue of $118.8m, up 21% quarter on quarter and 38% vs the prior corresponding period. The strong performance is attributed to exceptional customer demand and a further expansion of service offerings across multiple industries.
  • The delivery of this quarterly revenue takes FY22 revenue to $402.1m (unaudited), exceeding previous market guidance of revenue of at least $370m and representing year on year revenue growth of 32%.
  • The Company reaffirms FY22 NPAT will exceed at least $24m and expects to release its audited NPAT results on 23 August 2022.
  • Revenue generated by the Australian business during the quarter was $99.5m, up 29%. Demand for core mechanical and ancillary service offerings remained strong.
  • The North American segment delivered $16.9m, up 149% on the PCP (143% on a constant currency basis) and 22% vs Q3 FY22. Market growth was largely driven through an increase in demand for core services across the United States.
 
MAD continuing to deliver increased performance with a lot of growth potential in the North American market.

Quarterly update includes a profit upgrade which the market didn't seem to like that much which was curious. valuation is definitely at the high end but I think they've got a lot of growth potential and have really defined the business model/culture which I like.


1666693693928.png
 
I have Picked MAD for the July Stock Picking Comp.

I have been Screening 52 week highs as a method of selection for rising stocks and for entry points.

Time will tell this one, it is a bit random but will be interesting.

All the best

bux
 

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