"Yes, revenue for PCP was about $46m so improvement suggests that the current six months may reach $50m which, I think would be their best six monthly revenue result ever. "It sure will be a record Revenue half (assisted by the weak A$, it must be said) but still in keeping with the long history of strong top-line growth, through all manner of economic conditions and exchange rates:
View attachment 4870972One interesting bit was the Australian domestic sales (still proportionally small in terms of overall group sales), but 34% growth is likely to reflect meaningful market share gains not to be sneezed at, providing those market share gains can be sustained (obviously the weak A$ is rendering imports un-competitive...let's see how long it lasts).
And it looks like they have finally cracked the code in Brazil (+14%), because its been a succession of good growth figures from that region.
Also, European sales growth at 4.1% is not too bad, given the A$ was some 8% to 9% stronger than the Euro and the pound, against the backdrop of rapidly weakening European economies, esp, UK and Germany, which are key markets for SDI.
Also, good signs of pricing power to recover GP margin in the face of rampant logistics cost pressures.
So plenty of bouquets, but the one brickbat is the North American business, which is struggling... A$ Sales up 5.5% when the A$ was close to 10% weaker between the respective 4-month periods. The US is a very competitive market and one in which SDI has struggled to make any real inroads.
Looking beyond just the noise of 4 months' worth of business, what shareholders should want to happen over the next 2 or 3 years, is that the company needs to be all things to all men (and women), by:
1.) Funding the renovation of the new warehouse,
2.) Knocking the debt (arising from the recent expansion of the company's commercial land bank) on the head, and at the same time
3.) Continuing the progressive dividend trend which had commenced several years ago (obviously, Covid disrupted 2020):
View attachment 4871119The business certainly generates enough surplus capital to do all three.
.
(20min delay)