SGI - Stealth Group Holdings

[System]

Stealth Global Holdings is a distribution group supplying an extensive range of safety, industrial, healthcare and workplace consumable products to business customers.

Stealth primarily serves businesses in the resources, transport, infrastructure, engineering, construction, manufacturing, general trade and industrial sectors.

Stealth's core products are safety, industrial, healthcare and workplace consumable products and their key services include distribution and logistics services, contract supply and on-site inventory management solutions.

It is anticipated that SGI will list on the ASX during September 2018.

https://www.stealthgi.com

 

[frugal.rock]

This stock sitting up requesting future acknowledgement.
Chart since inception and 3 month.

 

[Dona Ferentes]

never heard of this company b4

Stealth Global Holdings Ltd (SGI) is a distribution group providing a range of safety, industrial, healthcare and workplace consumable products and supply chain solutions to business customers. The Group operates in Australia, UK, Africa, Asia, Europe under three competitive brands, Heatleys Safety and Industrial, Industrial Supply Group, and BSA Brands (UK) a joint venture with Bisley Workwear .

 

[Dona Ferentes]

This stock sitting up requesting future acknowledgement....

had another of those spike days, today. (less is more)

Trading Update

Stealth’s trading performance continued to improve in 1H 2021, building on the momentum started in the second half of FY2020. Revenue returned to positive growth, up 7% on 2H 2020

As a result of the change in the Company’s Africa strategy in December 2019 to refocus on more profitable customers, group revenue was down 23% on 1H 2020, however earnings have significantly improved in line with the strategy. The Company delivered a record statutory EBITDA, higher gross margin %, and higher statutory Net Profit on the lower revenue base.

 

[Dona Ferentes]

Through its wholly owned subsidiary, Heatley Sales Pty Ltd, SGI will acquire the business assets of Skipper Transport Parts


Highlights
• Stealth has agreed to purchase the business assets of Skipper Transport Parts from Eagers Automotive Limited subsidiary, AMCAP, for a cash consideration of $4.2m.
• STP is a market leading Australian distributor of Industrial Maintenance, Repair and Operating (MRO), Automotive, Truck & Trailer, Mining, Bus and Agriculture products.
• Key assets to be acquired include:
› Branch store locations in Perth, Albany, Esperance, Karratha, Port Hedland, and its onsite stores operations at several customer locations across Western Australia and Queensland,
› 34 employees, ~1,250 customers and ~300 suppliers,
› Technology stock management systems and websites,
› ~ $0.5m of PP&E and ~ $3.7m of Inventory (~250,000 products in-stock).
• Stealth forecast that STP is expected to deliver Revenue of ~$18.0m and EBITDA of ~$1.1m within the first 12 months following the completion of the transaction, resulting in an estimated purchase multiple of ~3.8 times forecast EBITDA. Stealth reported 1H2021 Revenue of $30.4m and underlying EBITDA of $2.1m for the six-months trading to 31 December 2020. The collective annual revenue following completion is ~$90 million.
• The acquisition will be funded through debt facilities provided by Commonwealth Bank, with transaction completion expected on 31 July 2021.
• Stealth has also secured a 3-year distribution agreement with AMCAP for the distribution of various Original Equipment Manufacturer ‘OEM’ genuine and after-market parts including Ford and Holden in Western Australia as well as Cummins Filtration, Donaldson and Exide Batteries Australia-wide.
• STP is a strategic fit and highly complementary to Stealth’s existing operations, allowing all Stealth’s subsidiary businesses and STP to merge and cross-sell to some 75% of all customers with its wide-range product offering and high-touch solutions models across the collective WA sales network.
•

 

[System]

On November 30th, 2023, Stealth Global Holdings Ltd changed its name to Stealth Group Holdings Ltd.

 

[verce]

I'm currently researching this company because it looks really good. Has anyone got any thoughts they want to share? Good or bad.

 

[verce]

@frugal.rock

 

[frugal.rock]

I'm currently researching this company because it looks really good. Has anyone got any thoughts they want to share? Good or bad.

Nice chart, although it's suddenly looking precarious.
Come up with anything of interest from the research?

 

[verce]

Nice chart, although it's suddenly looking precarious.
Come up with anything of interest from the research?

View attachment 172900

Nothing really of note (but this is not a bad thing!) - they seem to be quiet achievers in a very mundane sort of enterprise. Which is one of Peter Lynch's favourite style of investments.

I recommend listening to their recent webinar.

 

[debtfree]

ASX Microcaps with a blue-chip profiles: Stealth Group​

By Kerry Sun - Mon 25 Mar 24, 2:53pm (AEDT)

Key Points​

• Stealth Group is a distributor and retailer of industrial and automotive products in Australia
• The company reported $111 million revenue in FY23 and seeks to triple this by FY28
• Stealth Group currently has a market cap of $27 million, with $8.8 million cash on hand

The world's biggest central banks are set to reverse a record string of rate hikes and stocks towards the small end of town are widely expected to benefit. In this series, we're going to take a deep dive into profitable microcaps with unique businesses and strong balance sheets (which hopefully means no unexpected or nasty capital raises).
First off the ranks is Stealth Group (ASX: SGI) – One of Australia's largest industrial distribution groups, operating 70 company and independent partner stores and providing more than 1 million products to commercial, trade and DIY customers

Stealth Group At a Glance​

• What do they do: Stealth Group is headquartered in Perth and operates under five subsidiary brands – Heatleys, Tool Centre, Skipper Transport Parts, Industrial Supply Group and United Tools.
• Management: Chief Executive and founder Michael Arnold founded the company in 2014. He has over 36 years of experience in distribution and supply chain management and previously served as the COO of ADG Global Supply. He beneficially owns 10.9 million shares in the company
• Market cap: $27 million
• Cash on hand: $8.8 million as of 31 December 2023
• Shares on issue: 100.9 million
• Share price performance: Up 18% year-to-date and up 120% in the past twelve months

Full write up from Market Index below:

ASX Microcaps with a blue-chip profiles: Stealth Group

Explore ASX microcaps poised for growth as central banks pivot. Learn about Stealth Group's solid performance and future prospects.

www.marketindex.com.au

 

[Dona Ferentes]

...details of its acquisition of Force Technology International Pty Ltd, a market-leading distributor of consumer mobile accessory products in Australia.

OVERVIEW & SUMMARY STRATEGIC RATIONALE
• About Force: A leading wholesale distributor and solutions provider in the large and growing $2.2 billion mobile accessories market, selling its products through ~3,310 retail reseller store outlets across Australia. Approximately 48% of Force sales are generated from its own-label and private-label products.
• Stealth to acquire 100% of the shares in Force for approximately $9.5 million with an additional outperformance incentive if specific profit targets are exceeded in FY26.
• Transaction multiple of <4.0x EV/EBITDA for FY23 and FY24F, before transaction costs.
• Funding: The acquisition is being funded by
(a) the issue of new ordinary shares in the capital of Stealth and
(b) the assumption by Stealth of the existing working capital finance facilities of Force held with the Commonwealth Bank.
• Rationale: Aligns with Stealth’s focus on higher-margin, capital-light, cash-generative, and diversified product ranges featuring own-label, private-label and exclusive brands, and a nationwide distribution network.
• Larger Business: The combination creates a substantially larger, scalable distribution-focused business with an end-to-end customer acquisition and engagement platform to business, trade, and retail consumer markets.
• Expansion of Distribution Network: Significantly accelerates Stealth’s reach to ~3,310 retail reseller store outlets across Australia.