We should get an update on the H1 dividend by the end of Jan. Based on the Q1 results and my estimates for Q2, I'm expecting a H1 dividend of 2.2c which would be a 22% increase on the H1 divvy last year. The bigger question will be the outlook for calendar 2022. There are a lot of tailwinds for this business given strong LH demand (particularly in anything supply chain related and construction is picking up). There are also wage pressures building across a number of sectors. The uncertainty for me is what impact does COVID have on ASH's supply of labour - i.e. can they deliver sufficient labour to meet demand? Overall however I think the positives outweigh the negatives so they should be able to continue to deliver solid earnings growth. The other growing elephant in the room is when will the next acquisition be made - they are due and have the balance sheet capacity to do something even bigger this time.
ASH Price at posting:
59.0¢ Sentiment: Buy Disclosure: Held
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