Well it turns out they are massively profitable after all! :)...

Well it turns out they are massively profitable after all!

The Precast division has been holding Simpec back so I only expected $0.5-1 million max underlying profit for this half but it turned out to be $2 million and would have been $2.5+ million without the Precast loss which has been addressed by moving to the Alltype facility.

So add in the Alltype profits moving forward combined with the cost savings and $5-7 million of underlying profits are possible here even without any growth!

Far from being misleading with their guidance in the quarterlies of $1.5 million profits from subsidiaries, they were actually under promising and have over delivered today with $2 million!

Bring on the next couple of quarterlies where the cash flows will be booming with the Alltype acquisition and it’s very hard to not see this business getting a rerate at some stage.

The crazy thing is that you can actually buy your shares back cheaper now than before this sensational result thanks to the markets getting smashed and everyone being fearful!

Some of WSI’s larger market cap peers are far less profitable with much larger complex contracts meaning more risk. I really like how the management team are going for sustainable profitable growth here for longer term shareholder value.