Some useful comments during the call : - gross margin improvement (150 bp according to them) is due both to better trading conditions and more ending projects (this last element having an impact of only 20 to 30 bp), - gross margin is now considered to be at a normalised level, - at this stage, they do not expect major deviation for margins in FY 25.
Regarding margins, also interesting to note that their new businesses (modular or Design and Build) are done with higher gross margin than the rest of the business.
I am not really concerned by the revenue decrease in FY 24 : - backlog orders continue to grow (+ 33 %), - probably better also that the company focuses on margins vs growing revenues, which gives a better visibility on their high level of cash flow.
SHA Price at posting:
$2.67 Sentiment: Buy Disclosure: Held
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