Just thinking about SND, and I have held for years, is that one of the advantages of buying businesses that have no debt and nice clean financials is that they can stumble along for a long time looking for ways to turn things around. ......... For those reasons I havent minded having it in my bottom drawer all this time.
Naos comments on SND:
"The highlight for the month came from SND which made three significantly positive announcements.
- The first of these related to the award of a $15 million contract from Sydney Water..
- The second was a contract win ...from Rio Tinto to provide repair and maintenance services...
- And finally, SND announced that the 1HFY20 result is expected to be between $1.2-$1.6 million EBITDA on revenues of circa $30 million, with the balance sheet having a healthy cash balance of $9.4 million.
In our view, these announcements show that SND is shaping up for potentially its best 2-3-year period in the company’s long history.."
In terms of potential future opportunities, it is also worth noting that the Federal Government recently announced a Request for Information (RFI) process for potential liquid storage projects around Australia. The purpose of the RFI according to Government is to strengthen local industry, as well as enhance Australia’s onshore fuel security.
.We estimate that if Australia is to store its recently acquired fuel onshore (currently stored in the US), the total spend on storage facilities to reach the necessary capacity, prior to the acquisition of any land and buildings, would be between $1 - $1.5 billion. Submissions close on the 10th of July and we expect a decision to be made later in the calendar year
Saunders is experiencing strong growth in its core services and sectors and an increasing level of new contract business enquiries and requests for tenders in emerging services and sectors, Defence and Energy. Tendering activity shows the value of live tenders at $303.8 million. The pipeline (yet to be tendered) is at $367.6 million.
Whilst we continue delivering on our recent growth the economic outlook both locally and internationally remains uncertain due to COVID-19. Although the COVID-19 pandemic is likely to lead to further economic stimulus, which should be positive for Saunders, the financial performance of the Group will be dependent on how the continued pandemic impacts our clients and our people. Our FY21 budget is based upon a revenue target of $100 million with EBIT margin of 3.75% to 4.75%.
It is experiencing strong growth in core services and sectors.
the company, in its prudent cash conserving way, did comment on this (and remember revenues would be lumpy)11 million in cash and no final dividend, in fact no dividend since 2018. A 1c dividend would only cost them a little over a million bucks...
DIVIDENDMr Benson further said “Whilst we remain cautious of the current economic climate we are positive about continued improvement in FY21 and will be focussed to build on the foundations we have set as a result of the implementation of our renewed operating model and the continued strategic diversification into new sectors and services.”
not a ripple.
The grants/ tender have been telegraphed for a while. ... and yes, the volume is negligible.Probably need to see some contracts before there is any action. Its a rather quiet registry!
SND announced one of its largest contract wins to date, with a $26 million contract to assist in the redevelopment of fuel infrastructure within the Larrakeyah precinct in Darwin. This win further highlights the diversification strategy that SND has embarked on in terms of both client base and the range of projects. In addition to having a record order book, given there is a number of large government tender opportunities concluding over the few months, we believe the opportunity exists to continue this recent momentum.
It was also pleasing to see the appointment of Nick Yates (former CEO of BSA) as an Independent Director, who possesses significant contracting and public company experience. Over time, we believe a transition to a majority independent board with an independent Chairman would be in the best interests of all shareholders.
The miracle of compounding losses, thanks god we have dividends not...Some one must have noticed! Popped up 5% today, its back up to what I paid for it many years ago! One of my original positions in my personal portfolio. I have held the faith.
Some one must have noticed! Popped up 5% today, its back up to what I paid for it many years ago! One of my original positions in my personal portfolio. I have held the faith.
And the Market gods will ensure you will regret it by next month?I'm out on the SP pop, needed some cash anyway, have held for 10 years.
And the Market gods will ensure you will regret it by next month?
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