Alf sounded very positive in the presentation. Ok, he ALWAYS does, but he definitely left this watcher with an impression of real confidence going forward, with the current year having the potential to be the best ever, or close to it.
He made the point that not only are we immune from the higher debt servicing costs impacting most companies at the moment, but we are actually generating useful income in interest from our $115 million cash pile. That should be worth $4-5 million this year.
I was also pleased that he foreshadowed maintaining that pile at a minimum of $100 million. The gradual expansion he seems to be planning will be mostly funded from free cash flow. It is really helpful that free cash flow is of such strength we can do that! We are effectively funding gradual expansion largely free-of-charge, from money we are about to make.
Continued steady growth seems assured, and management seems committed to taking advantage of opportunities in a GRADUAL way. No “big moves” like around 10-15 years ago which had only mixed success.
I recall strong buying often comes in for SRV a couple of days after good results are announced. These seem to be VERY good results. Perhaps the share price will respond early next week. I’m highly tempted to go again, but I’m already up to 20,000 of them and kinda feel that’s enough. I’m monitoring myself closely to see if I get greedy overnight!
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