At the AGM on 25 November 2022, the Chairman said:"...Trading...

At the AGM on 25 November 2022, the Chairman said:

"...Trading momentum this financial year has remained strong. Assuming current trendscontinue, we expect revenue for the first half of FY2023 to be in the range of $116-$118million and profit after tax in the range $12-$12.5 million as we sweat existinginfrastructure. Although we expect revenue growth to continue in the second half, highercosts from the Truganina DC and branch, the expansion of Somerton and preparations forYatala will reduce profit growth over the second half..."

So this implies that 2H 23 revenue was around $134 to $136 million with 2H 23 NPAT around $14.9 to $15.4 million.

Very impressive, especially when one considers that retail sales figures are starting to show how shoppers are closing their purses/smartphone apps/wallets with this flowing through to trucking companies (and rail operators) in lower demand for freight that ends up in retailers' warehouses.

Retailers are in many cases allegedly overstocked according to media, so for that section of the trucking fleet, one might expect fewer kilometres and hence fewer problems that SNL needs to quickly solve with its same day metropolitian delivery of its enormous range of truck and to a lesser extent bus spare parts.

Should we have a recession, the median age of the nation's trucking fleet will tend to rise, accentuated by the lower instant asset write offs available from 1 July 2023. This helps SNL as its 'sweet spot' is when truck (and road coach/bus) warranties expire. Older fleets require more servicing.

If every company was like SNL in underpromising and consistently overdelivering, we'd all be more materially affluent.