Ann: 1H FY22 Half Year Results, page-13

I have doubled my SLC position in the last week. Not sure why we sold-off so significantly, but I'm grateful for the opportunity to add. If it keeps falling, I may see if I can free up some more cash for another bite?

My reasoning:

• I have a long-term perspective, so am prepared to hang on to this for 5+ years;
• this HY report only had 5 months of Exetel - so next HY will paint a better picture of what we bought;
• I think P.Tyler is pretty switched on - so I trust he will allocate the cash wisely that we're about to be awash with (from HK/S'pore asset sale). Assuming good investments, whether organic or inorganic (or both), this should further accelerate our business in future years;
• as SLC mentioned, the full synergies from Exetel haven't hit yet. Execs. said that they think 25% gross margin is achievable in Consumer business (currently 20.6%). So over the next 6-12 months, we should be getting closer to that mark I reckon;
• The student WIFI business should return to pre-COVID levels over the next couple years, and currently isn't contributing much. It'll take time, but international borders are now re-opened and the world is adjusting to life after COVID, with most people becoming vaccinated. So this's another revenue stream that will contribute again in the not-too-distant future, as the international students roll back in;
• and lastly, I like the idea of buying hard assets and I am in the "inflation is real" camp. I'm no economist, but too much money has been printed around the world in the last couple years: there has to be some response to that. SLC should be able to adjust pricing of their products to offset this.

All in all, I think this is a good little company with a bright future.