well revenues were down in FY20, so some component of bounce...

well revenues were down in FY20, so some component of bounce back is possible too.

I don’t really think Lindsay is a good comparator, mainfreight and DHL are probably better and certainly reported outstanding improvement in profitability over the last year, so it would be disappointing if WWG doesn’t too. The revenue growth here, however, is well above system growth suggesting they are taking market share and certainly the AGM comments and the financials seem to suggest that they are getting new clients who are themselves growing.

Obvioisly no one knows what the world will look like in two years time, so it is hard to envisage exactly what the business looks like. But since listing, they’ll have doubled revenue (they did just 40m in 2016!), lifted gross margins from 18 to 26% whilst significantly expanding their geographical base and their product/service mix. I strongly suspect they are going internationally with their partner airlines, substantially decreasing the geographical expansion risk. For instance when referencing the expansion to LA, they’ve specifically alluded to the LAX-PVG route for freight support. In terms of current roles- they are hiring in their Sydney warehousing functions, sea freight and a full stack Java developer. This is all in addition to the recent board announcement and Singapore expansion. All of this suggests that the business will be a lot larger in two years time when the exogenous circumstances may well be different.

Still a lot of risk hence a small position for me.