The company is well under the "max" leverage it could pursue. They can go up to 80% and on a gross basis was under 70% at June 30. Accounting for the free cash on the books and leverage is much less.
I agree that it would have to be a very bad and protracted recession to see off the strong balance sheet and cause a nasty dillutive capital raise. If anything its more likely SVR exits this period with a better competitve position and may even snag an loan book acquisition at an attractive price.
management owning a lot of stock including the Chairman taking up a good whack of DRP shares is also comforting.
Ann: FY24Q1 Trading Update, page-11
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Last
$1.23 |
Change
0.015(1.24%) |
Mkt cap ! $252.1M | |||
| Open | High | Low | Value | Volume |
| $1.23 | $1.23 | $1.23 | $1.711K | 1.397K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 1489 | $1.23 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.24 | 2561 | 4 |
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| Last trade - 10.10am 18/09/2024 (20 minute delay) ? |
| SVR (ASX) Chart |