I have followed the Chairman, Geoff Selig, since listing in...

I have followed the Chairman, Geoff Selig, since listing in 2015. I think it may be worth relistening to the interview he gave post the last set of results, from which I have drawn some further confidence regarding the medium to long-term outlook for the company.

The key takeaway points that resonated with me are:

• The business is in good shape overall and well-positioned to perform in the current economic environment.
• There is no major customer concentration across a largely blue-chip customer base.
• The company is diversified across a range of business streams and has diversified its earnings base markedly since listing (yet it gets rated as a 100% old-style printing business in decline).
• Yes, the MGM was a bit lower last year driven primarily by absorbing the lower-margin Ovato business. This is expected to normalize over FY 2024 & FY2025.
• Yes, cash conversion was in the %60s and not the usual %90s, a result of the increased working capital uptake following the consolidation of Ovato and also the bolstering of raw material supplies given the post-COVID uncertainties. This is also expected to normalize over the next couple of years.
• The balance sheet, while carrying more debt, remains in good shape and within covenant.
• Any shareholder who has been on the register since listing has received $1.05 of fully franked dividends over this period.
• I expect the dividend to be largely maintained as cash conversion improves and even if it is trimmed a bit, it is likely to still offer an above-average yield.
• In summary, a well-run company with a management that has skin in the game, with #1 market share in most of its categories on a single-digit multiple paying a double-digit ff yield. I like it.

https://www.finnewsnetwork.com.au/MediaCenter/MediaCenterMobile.aspx?Site=FNN2443
Disclaimer: Please do not rely on any of my comments, expectations, or figures and do your own research.