not an altogether unexpected reaction from the investment community but as a somewhere who sees this company as a very long term investment opportunity, I was happy, and was again impressed by the new MD.
I think the market didn’t like the customer power at play.
- Rebates up from 8 to 10%.
- Terms for customers being extended
- home branding impacting some lines (4mil impact)
- customers de-stocking (5mil impact apparently)
- the new deals sound like they are beneficial to customers in the short term (at the expense of GUD) with benefit to gud in the medium to longer term.
- new filter competition (bmc?), preventing price rises for RYco.
- gross margin pressure due to fx
- lower cash conversion due to investments in nwc
but having said all that there were certainly some positives:
- i think clearly their financing terms will be unibail-esque as I’m sure banks will be throwing money at them with rates where they are.
- They feel that home branding has reached a floor
- cash conversion guidance sounds very conservative
- Davey growing with volume, and price increases to come. High demand for some products.
- plenty of acquisition opportunities
- tailwinds from an extra 5 months of AAG this year.
And then the all important valuation...
With ebit growth forecast the company has a prospective ev/ebit of about 11 which seems excellent for a cash generative company that when all manner is going against them they still manage to report earnings growth. Net debt:ebitda is low and we can obviously expect bolt-ons in the near term.
To me the result seemed resilient and I’m a happy shareholder. If the market wants to have a short term hissy fit, then I’ll be waiting.
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- Ann: Full Year Statutory Accounts
not an altogether unexpected reaction from the investment...
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Last
$10.66 |
Change
-0.025(0.23%) |
Mkt cap ! $1.501B |
Open | High | Low | Value | Volume |
$10.66 | $10.74 | $10.61 | $1.075M | 100.9K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
11 | 615 | $10.65 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$10.66 | 629 | 4 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
19 | 1031 | 10.630 |
5 | 1241 | 10.620 |
10 | 3228 | 10.610 |
9 | 4495 | 10.600 |
3 | 747 | 10.590 |
Price($) | Vol. | No. |
---|---|---|
10.650 | 423 | 12 |
10.660 | 1900 | 8 |
10.670 | 4044 | 12 |
10.680 | 2420 | 9 |
10.690 | 1163 | 5 |
Last trade - 13.32pm 28/05/2024 (20 minute delay) ? |
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Last
$10.65 |
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Change
-0.025 ( 0.00 %) |
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Open | High | Low | Volume | ||
$10.67 | $10.73 | $10.61 | 11532 | ||
Last updated 13.48pm 28/05/2024 ? |
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INFINI RESOURCES LIMITED
Charles Armstrong, CEO
Charles Armstrong
CEO
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