Assuming the half year underlying profit comes in as forecast (and SRH tends not to disappoint), that will make two very solid consecutive half year results - in a covid-crazy year.
It should be around $1m underlying profit for the 2020 calendar year (plus $350k in covid support). That's not bad for a $10m company (at 27c).
Not least when you consider the growth potential of two of the company's three divisions in particular - Rental and International. It seems to me these two divisions are still in the relatively early stages of their growth. And, for both divisions, the heavy-lifting groundwork has already been done - ie. substantial investments made (a lot of R&D), supply chains established and the business model tested and proven.
There's so much going on at Saferoads. Expansion of the highly successful rentals business into NSW. Bedding down a distributor for the Omnistop portable bollard in the US (and first sales already). New director appointment - Hayden looks to be an excellent addition to the board. The excellent Chairman and CEO presentations illustrate perfectly all that's going on.
Saferoads is primed for a substantial re-rating over the next few years imo.
SRH Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
(20min delay)