Revenue up 16%, NPAT down 18%. Some party trick there.
Yes, it has been a difficult time for SDI. But I think the company has underperformed on cost management.... it appears they are flotsam and jetsom on the tides of supplier forces. I'd be curious to now what 3.3M (freight) was in % terms? Double perhaps? Seems punchy given that there product is not bulky at all. Could they have passed these costs on to protect gross margin?
As madamser has said - was the correct decision to abandon plans for the new factory and the Cap Raise requirement. Surely their site can be reconfigured. And for storage - perhaps 3PL is the answer?
SDI Price at posting:
87.5¢ Sentiment: None Disclosure: Not Held
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