Well done fellow shareholders, we are on a winner here, no...

Well done fellow shareholders, we are on a winner here, no question.

Spot on ZMan, nice to see a company rewarding its current shareholders with the opportunity to reinvest dividends at a discounted price. What is also relevant is that SNL directors are keen to retain more earnings, and with debt being low, that means they have a use for the funds. And with a return on equity of close to 30%, I'm more than happy for them to retain earnings. (Incidentally, in 2011 with the DRP was in operation about 75% of the dividends were reinvested).

I can't help but see this company as following a similar path to ARB Corporation, a highly successful ASX200 company. Of course SNL doesn't manufacture and control the supply chain like ARB, but they do share characteristics such as:

* A focus on measured organic growth and low levels of debt.
* Management that has been involved in the company for a long period of time, they are shareholders and they engage in long-term planning and thinking.
* Directors that pay themselves modestly, and do not talk themselves up (ie. no glossy media presentations).
* They pay special dividends.
* They provide an outlook that generally underpromises and overdelivers (eg SNL forecast FY2014 revenue growth of 10% and achieved 20% growth).

Back in 2011 SNL stated that their "new branches take 4-5 years to become established and offer reasonable returns on investment". They have carefully planned their network, and we are still at the beginning of this strategy bearing fruit. The other aspect to their bright prospects has been the company's ability to understand their customers' needs and respond by broadening their product range.

Keep it going SNL .....