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SND - Saunders International

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To be beneficiary of Fed govt spending on strategic fuel storage, also Fed and NSW spending on bridge building programs.

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Yes, it could finish this year in a very strong position if the 2nd half plays out as they hope.
 
from Naos, a long-term investor in SND:

SND announced a further $10 million in new contract wins, all of which were associated with infrastructure projects. This occurred at the same time as the government announced that nine projects have been offered grant funding to increase Australia’s diesel storage capability. We believe that a significant majority of these project owners are either current or previous clients of SND. The grants can only cover up to a maximum of 50% of the total value of the project, which we believe will preclude some smaller and less well funded competitors from tendering on such work. The decisions on which contractors will assist in building these new projects should be known before the end of the calendar year.
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Capping off a very busy period for SND was the announcement of the acquisition of specialist process automation and electrical solutions business PlantWeave. Albeit only a small business with $5 million of revenue, this acquisition provides SND with a significant increase in capability in area sector experiencing increasing demand due to technological change and other requirements. SND has worked with PW previously and we believe there is substantial scope for this business to scale substantially over time whilst delivering strong margins.
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And from Saunders, at the time of acquisition: the acquisition of PlantWeave provides Saunders with an opportunity to expand its technical service offering to its existing clients in the Oil & Gas and Resources sectors. The diversified service will assist with accelerating market penetration into the Defence and Utilities (Power and Water) sectors.

Saunders customers are increasingly moving towards technology driven solutions and PlantWeave will drive Saunders market entry into Cyber Security, Industrial Automation Systems, Process Optimisation and Industry 4.0 Technologies.

..... still only M/C of less than $80M. Co seems to be getting beyond the 2018-19 overextension.
 
Yes, will be interesting to see the full year results, I have been a holder for years, good little business.
 
SND would have been unlikely winners of this contract!!

A $270 million fuel storage facility will be built in Darwin over the next two years to support continued US defence operations in the Top End. With a capacity of 300 million litres, the facility will be the largest fuel storage project in the Territory once built.

It will be built at East Arm at the Land Development Corporation's future Bulk Liquids Area site, neighbouring the existing 174-million litre Vopak fuel storage facility.

The US government's Defence Logistics Agency has awarded the construction tender for the facility to Florida-based logistics, government, marine and energy solutions company Crowley Government Services.
 
Bingo! As expected Saunders got the bulk of the work for Crowleys on the Darwin Fuel Storage project, a great win for the company.

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I would think the Heham fabrication yard gives SND a distinct advantage when tendering for jobs north of the Hawkesbury. A big element of any cost would be the transportation of the girders to site.
 
Just read thru the AR, great result for SND, happy hodler here! The divvy is not as good as it sounds, I think the final divvy last year was 1.8c anyway.
 
Yep, as I said, last year the final was 1.8c anyway. Chart doesnt show final & special for 2022 yet.
 
Some say it's watching paint dry. Nice patina. Three year chart:
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And, drumroll, from long time holder, Naos
NOTABLE INVESTEE COMPANY UPDATES - SND
Notable Events: FY23 Guidance, Contract Wins
SND continues to go from strength to strength and Q2 FY23 showed no signs of a slowdown in momentum. In Q2, SND secured two substantial contracts, the first of these being a $9 million contract with Parks Fuels, for the development of extra diesel storage as part of the Federal Governments ‘Boosting Australia’s Diesel Storage Program’. Although not material in its own right, the client has been issued a grant to build a second facility in Port Kembla with the contract yet to be awarded. We would argue SND has a high likelihood of winning this work given the above.
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The second contract was a $44 million contract to build the aviation fuel terminal at the new Western Sydney Airport. For context this is the second largest contract awarded to SND in the company’s history and represents just the first stage of a two-stage project.
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SND also provided FY23 guidance at their AGM, at both the revenue and EBITDA level. Revenue is expected to be between $190 million and $220 million (FY22: $130 million) and EBIT margins are expected to be between 6.5% and 7.5% (FY22: 7.21%). Clearly, SND is going through a period of significant growth when compared to the $66 million of revenue reported in FY20. With this growth comes a significant amount of execution risk, especially as SND is in large part a contracting business. We believe these risks are adequately reflected in the margin guidance, especially as it has been provided some 8 months out from year-end. If execution can continue as planned, and unknown variables such as weather remain benign then we believe EBIT margins may potentially exceed guidance.

Over the past 4 years, Mark Benson and his team have transformed SND from a sub-scale contracting business with a high fixed cost base and a very narrow work focus, to a business that now has scale, provides more complementary services along with its core offering, expanded into select adjacent industries and works with Tier-1 clients with a significant exposure to defence.
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We continue to believe that if achieved, the FY23 guidance will not just be a flash in the pan but the start of a new base that SND can continue to build upon. The value of live tenders and pipeline jobs continues to increase and now stands at over $1.5 billion, and we expect SND to continue to put itself in the best position possible to secure further large contracts with Tier-1 clients.
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Lot of waffle from NAOS, wouldn't call them a long term holder, I think they have held for a few years at most. It is a great little business, obviously not a growff prospect and operates in a unsexy sector, but they are good at what they do, lots of insider skin in the game and sensible capital allocation.
 
and a bit of a shock; down 7%

Crowley has decided to restructure the delivery of their Defence fuel storage facility in Darwin, NT. As a result SND today announces that it has been issued with a ‘Notice of Termination for Convenience’ by Crowley relating to the $165 million contract both parties entered into in November 2021 for the Design and Construction of fuel storage tanks and the Engineering, Procurement and Construction Management services for the overall US Defence fuel storage facility in Darwin, NT.

The contract involved the following:
▪ A $140 million contract for the D&C of 11 tanks for a jet fuel storage facility in Darwin; and
▪ A $25 million EPCM services contract for the delivery of the entire fuel facility and marine loading and unloading facility at Darwin Port.
 
I don't get a contract like this. The counter-party opts out well after commissioning at its "convenience".
Since SND don't mention compensation for the work already done, including 11 designed for purpose tanks, it sounds like we're in the hole for it. Plus SND have to provide them with assistance, WTF? Must've been a lot of tender competition to accede to terms like that.

Held
 
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