The Brains Trust - 2015, page-13914

64, the split of revenue for SHM is almost 50% kitchen appliances and 50% consumer items, although the ebitda margin is 2.8% and 13.2% respectively, so a big difference in contribution to total ebitda and each dollar increase in consumer revenue is worth a fair whack more to the bottom line. Both divisions saw ~6% growth on pcp, which is solid for a 30 year old company. They're also hoping to improve ebitda margins by around 1% for FY and are ahead of prospectus by ~10% at this stage. All in all, pretty good.

In terms of projecting forward, you'd have to think there's some degree of elasticity of demand for the consumer side of their revenues, which could be impacted if Australia sees a recession. How impacted they would be, I'm not sure. The kitchen side of the business is tied to new dwellings and regardless of what house prices are doing right now and what they'll do over the next 12-18 months, there's strong construction numbers in that period for Sydney and Melbourne and even Brisbane, I believe. This should see kitchen revenues lift. After ~2 years from now, the picture probably becomes less certain, as we know the impetus for new construction projects is linked to capital growth expectations and availability of credit.