I made it to the AGM. The overheads of the chairman's and CEO's...

I made it to the AGM.

The overheads of the chairman's and CEO's presentations sum things up very well, but I gleaned a few more insights.

* The board was clearly disappointed with the 2018-19 result but equally they remain upbeat about the future (in their usual down-to-earth, pragmatic and quietly determined way!). While it was domestic sales that disappointed in 2018-19, they expect domestic spending on road infrastructure to remain firm over the next five years at least. And the graph on page 3 of the chairman's presentation shows what a great trajectory their international sales are on.

* I recall at last year's AGM either Darren or David mentioned how they continually monitor their supply chain, looking for ways to achieve cost savings. Those weren't just words. With the China-US trade situation, they've recently moved a substantial portion of their production from China to a Korean company. They're very pleased with the price/quality outcomes this move has delivered, and they expect it will help to boost US sales (not least because some existing and potential US customers are currently somewhat wary about sourcing product from China).

* It was no coincidence that their first sale of the HV2 barrier was to New Zealand because it was NZ that was first to provide regulatory approval for the HV2. Now that a number of US states have followed suit (and more are expected to follow, along with Australian states), the foundations are in place for substantial growth in sales of the HV2.

* The regulatory situation in the US is currently in a state of flux. From what I gathered, the Feds looking to exit regulation of safety barriers and leave such regulation entirely in the hands of individual US states. What this means for the roll out of stricter regulatory standards (which the HV2 would meet) is uncertain - but it's not necessarily bad news, eg. some individual US states might now accelerate the process.

* The company's costs could well drop somewhat in the current year because a number of largely one-off costs have been incurred in recent years, eg. the costs associated with seeking regulatory approvals and expanding their rental fleet. Such cost reductions would bolster the bottom line.

Overall, it was an excellent meeting and, if anything, my optimism about SRH's prospects has increased. There's no doubt the company is switched on and that they're leaving no stone unturned to sustainably increase their profitability. And there's no doubt that they are long term focused. They're building the foundations for future growth rather than pursuing short term opportunities (as demonstrated by their decision to reject the terms offered by a public lighting company despite the appealing size of that particular potential sale).