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SRG - SRG Global

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Ok mea culpa, I was wrong & I am out. Once again this business just cant translate contracts into profit. One of the red flags I was looking for when the AR landed today was management's history of never discussing profit, EPS, NPAT, FCF or any form of real income. Sure enough they manage to not discuss it all in any of the documents released to market today. The only place was where they legally couldn't avoid it, in the P&L the negative EPS was stated.

Everywhere else all they talked about was bull**** earnings (EBITDA), as a result I sold out this morning, the big lesson here is I should have sold out 12 months ago, they did the same thing in the past, which I had documented in my investment journal, hence it was the first thing I looked for this morning.

It reminds me why a focus on understanding the financials of business is imperative if you want to be an investor as opposed to a speculator/gambler. Also a focus on Management execution and communication - clearly a long term problem here.

Well they say you learn most from your losses & mistakes, hopefully thats the takeaway from this!
 
management's history of never discussing profit, EPS, NPAT, FCF or any form of real income. Sure enough they manage to not discuss it all in any of the documents released to market today. The only place was where they legally couldn't avoid it, in the P&L the negative EPS was stated.

Everywhere else all they talked about was bull**** earnings (EBITDA),

- to paraphrase Charlie Munger
 
came across this one when researching for new targets to (consider ) buying

i have have mixed success in 'mining services ( and construction services ) companies

but i like the concept of selling shovels/trucks to miners

i doubt this will equal my big winners in this sector , but the price range is right ( under $1 ) for a toehold

A leading diversified industrial services group SRG is a diversified industrial services group that provides multidisciplinary construction, maintenance, drilling and geotechnical services to clients in sectors including Mining, Industrial Processing, Infrastructure, Renewable Energy and Commercial.

SRG operates three segments: Asset Maintenance; Mining Services; and Engineering and Construction.
Asset Maintenance delivers inspection, condition monitoring, testing, access solutions, repair and maintenance and shutdown services, underpinned by long-term contracts that generate recurring revenue.
Mining Services provisions production drilling and geotechnical services through long-term contracts that also generate recurring revenue. Engineering and Construction’s specialist capabilities include bridge, dam and tank construction, structural concrete contracting, design, supply and installation of facades and engineered product sales.

All segments firing: Ongoing growth expected

We forecast group revenue CAGR of 16.7% over FY23-26 driven by:
1) growth in asset bases across the Resources, Industrial Processing, Utilities and Infrastructure sectors following recent and current significant investment in these sectors, lifting asset maintenance requirements;
2) cross-selling revenues following the integration of Asset Care;
3) an acceleration in iron ore and gold production volumes over the next five years, boosting demand for production drilling and geotechnical services; and
4) near-term growth in the value of work done for Infrastructure, Non-Residential and Resources building construction, fuelled by Government and private spending. Investment thesis: Initiate with Buy; TP$1.30/sh SRG’s short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry.
The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term.

We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years. Trading at 4.2x FY25 EBITDA, we see potential for a rerate towards the Industrial Services peer group average of 5.6x.

a small snippet of recent Bell Potter research

i do not currently hold this share ( and don't currently have an order in the market )
 
divs4ever said:
came across this one when researching for new targets to (consider ) buying

i have have mixed success in 'mining services ( and construction services ) companies

but i like the concept of selling shovels/trucks to miners

i doubt this will equal my big winners in this sector , but the price range is right ( under $1 ) for a toehold

A leading diversified industrial services group SRG is a diversified industrial services group that provides multidisciplinary construction, maintenance, drilling and geotechnical services to clients in sectors including Mining, Industrial Processing, Infrastructure, Renewable Energy and Commercial.

SRG operates three segments: Asset Maintenance; Mining Services; and Engineering and Construction.
Asset Maintenance delivers inspection, condition monitoring, testing, access solutions, repair and maintenance and shutdown services, underpinned by long-term contracts that generate recurring revenue.
Mining Services provisions production drilling and geotechnical services through long-term contracts that also generate recurring revenue. Engineering and Construction’s specialist capabilities include bridge, dam and tank construction, structural concrete contracting, design, supply and installation of facades and engineered product sales.

All segments firing: Ongoing growth expected

We forecast group revenue CAGR of 16.7% over FY23-26 driven by:
1) growth in asset bases across the Resources, Industrial Processing, Utilities and Infrastructure sectors following recent and current significant investment in these sectors, lifting asset maintenance requirements;
2) cross-selling revenues following the integration of Asset Care;
3) an acceleration in iron ore and gold production volumes over the next five years, boosting demand for production drilling and geotechnical services; and
4) near-term growth in the value of work done for Infrastructure, Non-Residential and Resources building construction, fuelled by Government and private spending. Investment thesis: Initiate with Buy; TP$1.30/sh SRG’s short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry.
The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term.

We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years. Trading at 4.2x FY25 EBITDA, we see potential for a rerate towards the Industrial Services peer group average of 5.6x.

a small snippet of recent Bell Potter research

i do not currently hold this share ( and don't currently have an order in the market )
Click to expand...
Maybe one to watch, casually.
 
SRG Global Secures $125m of Contracts in diverse sectors across Australia Highlights:
• SRG Global has secured $125m of contracts across Australia
• Multi Year Term Contracts secured in the energy and resources sectors
• Renewable energy project for structural remediation works with existing client
• Specialist design and construct contract in the resources sector for concrete tanks

SRG Global Ltd (‘SRG Global’ or ‘the Company’) (ASX: SRG) is pleased to announce it has been awarded multiple contracts with existing clients in the renewable energy, resources and energy sectors across Australia.

The value of the new works secured is $125m, which includes:
• A six-year term contract for asset integrity and rope access services with Rio Tinto at their Yarwun Refinery in Gladstone, QLD. The contract works will commence in June 2024 and is expected to be completed in 2030;
• Asset integrity services contract extension with Origin Energy at their upstream infrastructure network across Queensland (QLD). The contract has commenced and is expected to be completed in 2025;
• Specialist structural design and construct contract to replace the existing roof support, walkway and water shedding system at the Tumut 1 Power Station site for Snowy Hydro Limited in Cabramurra, New South Wales.
The contract has commenced and is expected to be complete within 18 months; and
• Initial infrastructure contract for the design and construction of concrete tanks for BHP Iron Ore in Newman, Western Australia (WA).
The contract has commenced and is expected to be complete within 24 months. David Macgeorge, SRG Global Managing Director commented: “We are pleased to secure these diverse range of contracts across Australia through established relationships with Tier 1 clients across Australia.
I am particularly pleased that the combined offering of our up-front capabilities of our Asset Care business combined with the back-end execution of our Asset Maintenance team continues to gain traction with our clients.
“SRG Global continues to go from strength to strength, underpinned by our strong growth profile and recurring earnings base approaching 80% of our overall earnings which is in line with our long-term strategy.”

– ENDS –

i do not hold this share

curses probably hinders my plan to buy into these cheaper ..
but might help my in the monthly comp.
 
after snagging a small toehold in SRG on the last day of trading in June

i am cursing ( OOPS , tipping ) it again for July

i am hoping for sub 80 cents this time ( but no order in the market currently )


mid-term the mine maintenance business might be a winning niche ( if the global economy shrinks )

Bell Potter has a $1.30 target on it ( within 12 months ) , i think the economy has more headwinds coming ( but will be delighted to be proven wrong )

should be diverse in services to survive mid-term ( if it avoids take-overs )

remember i invest for a long time ( when fate lets me ), not an exciting time .. but have had a few of them and some crying times as well
 
Rabbithop said:
Just wonder why divs chucked it out of the window
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i would rather be early ( if there is a slide )

i can make calm , calculated buy offers on the way down ( maybe even take some cash off the table during the bigger rallies , in the down trend )

long term i think it has 'legs '

but will long term be 5 years , 10 years or never
 
divs4ever said:
i would rather be early ( if there is a slide )

i can make calm , calculated buy offers on the way down ( maybe even take some cash off the table during the bigger rallies , in the down trend )

long term i think it has 'legs '

but will long term be 5 years , 10 years or never
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That's quite a long term for me.
 
Rabbithop said:
That's quite a long term for me.
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considering the nice companies i have lost to take-overs , yes there is certainly survivor bias

CSR had been in the family since the 1970's , and is on the way out

even my holdings in 2020 show even bigger companies can't survive the take-over demons
 
Rabbithop said:
Farmer, thought you maybe interested to know...Capt Fool had just unleash All his Prisoners.
There are heaps of gurus n professors out there to follow...do you miss him🤔
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@Rabbithop Ah Rabbito I deal with enough fools in my working life and therefore I don't miss the Good Capt one little bit.
As you have so rightly pointed out there is an abundance of very clever people on site to follow.
 
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