"Relating to revenue, they have used the classic PCP comparison like many do (my biggest bugbear!) and not elected to compare vs H1 figures….I wonder why?"
+ Other comments relating to 'stalled growth'.
I think you've missed out of the fact that MSL has traditionally been a seasonal business, skewed to the December half hence why they report on a PCP basis. I took the following notes from when I have spoken with Pat in the past:
(For context, they have grown 45% in DH21 [on DH20] and are forecasting for 30-35% growth in JH22 [on JH21].)
For those that are interested in MSL I highly suggest watching the Investor Webinar relating the new acquisition - here.
While I don't have have time to do a full writeup (work commitments), I do think the presentation showed such great news for MSL moving forwards.
Hopefully I can get some writing out in the next week or so..
Keen to hear thoughts from anyone who caught the FY21 Results Web Presentation today.
I managed to jump on from the FY22 slides. Yet to have a chance to loop back and catch the full recording.
Initial comments simply based on the Q & A session.
I thought the management team were able to clearly address and respond to all the questions raised. Something of a rarity, I find, in companies at the smaller end of the spectrum.
It was also good to hear several off hand comments in relation to UK opportunities that hadn't been on their horizon earlier.
Once I'd had a chance to watch the full session I'll add any further comments.
As always, thank you so much @Noicewon11. Your reports are always so detailed and often analyse pieces of info that gets lost in company announcements, reports, presentations etc. I have been looking into MSL myself and have to agree with you in terms of valuation and the underpricing of it's stock. I think there is great growth coming in the next 24-48 months, especially as things begin to open up and now that the Premier League season has started again. I expect to see that reflected in the next quarterly update. I wanted to pick your mind on two things:
- I am interested as to how you see the golf portion of their business? Do you think this is an undervalued part of their business that will experience the same amount of growth in the coming few years? I have found it hard to properly analyse the business in a sense that at times it feels like you are really looking at two core businesses, that being the golf side of things and the other being the venue/stadium side of things where I think the latter has more growth potential over the next 24 months. Or are they more intertwined than I am giving them credit for and therefore we should see major growth in both areas? Would love to hear your thoughts on that side of things.
- The second side of things that has always intrigued me about MSL ever since I first did a deep dive is the amount of data that they have access to. I asked on an investor presentation a few months back whether they are doing anything with the data they obviously have access to in these thousands of venues, however the response was that they have no plans for the data as of yet. I wanted to know whether you see a use for such data and whether there is potential to provide a more comprehensive analysis of the businesses/venues that are using MSL products and even use some sort of AI to help out? I know it is a far-fetched idea but I find it to be an emerging part of business these days with people like Woolworths owning their own data company.
Interested to hear your thoughts and again thank you for such a thorough and well thought out report. - Jackson