@lukeyc88, I know where you are coming from about growth, and like as you mentioned about Dick Smith, i feel lack of growth is one of those subconscious perceptions of spotless. We are widely associated with 'mobs and buckets', and that isnt new, that doesnt change, so people assume the company doesnt change
In the prospectus it states Spotless has had a Compound Annual Growth Rate (CAGR) of 8.8% since 1990 (Fig 29), inflation averages 1.9% over that time. It also said they expect CAGR of 8.2 out to 2018 (Fig24). But i have a feeling they have stated lower forward growth figures since then, i will try and find a newer reference.
In any case we should expect continued growth, we can grow sideways, as we have seen by adding security (TGS), electrical (AE Smith/Nuvo), and metering services (UASG). And we can grow as more companies outsource services.
Our strategy of growing sideways can only work if we make smart, strategic acquisitions, and they perform as expected. There were problems with the Laundries acquisitions, one in particular, and i think that hurts us, we need to be able to proudly show off our acquisitions, so investors notice where the growth is. If we show on Tuesday that Laundries are doing well then it will make a difference, it will show that even if we make a mistake with an acquisition, we can fix our problems.
At the end of the day, Spotless is a management company, and they have to manage themselves properly first, any mistakes are magnified.
SPO Price at posting:
93.5¢ Sentiment: Buy Disclosure: Held
