SNL guided for flat profits and 5-6% Revenue growth in their AGM Address, it will be interesting to see if they out perform.
Valuation at current seems reasonable on the expectation of flat growth.
But the company has many growth levers:
- Increasing product range
- Store roll out
- New customers
The company is really focusing on growth over cash profits, over $7M increase in inventory +30% over pcp clearly above the natural rate. One would think this will settle down once they get there product range sorted. A reasonably aggressive investment plan for new stores and distribution centres.
This is definitely a FY16/17 story could be a solid long term play.
SNL Price at posting:
$2.15 Sentiment: Hold Disclosure: Not Held
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