This probably should have been lodged with the ASX before it was presented at Sharecafe. Price sensitive announcement etc. Looks good though. Nice to see a that operating leverage starting to flex.

I'm not sure how much is left for the upcoming H1 results release after today's Sharecafe webinar. Mike presented a pretty full set of H1 results.

My quick thoughts:

1. I missed the first part of the presentation, but from other updates on SM doesn't feel like I missed a lot of detail.
2. Agree with @mikebrisy that the main feature for me was the consistency in message and progress. No big surprises or disappointments, just steady progress and most stats in line with expectations.
3. Main disappointment for me was essentially static NPAT.
4. On the other hand FCF was stronger than expected. I assume most of the discrepancy between NPAT and FCF is that depreciation and amortisation was a lot larger than capex. That difference can't last forever. Capex was reasonably consistent so I assume that is a good sign that NPAT will soon lift.
5. If (big IF) FCF is matched in H2, then dividend could be meaty. Mike has previously suggested a 30% payout, which would be about $700k, or roughly 3% half-year (6% annualised) dividend fully franked.

@wtsimis ... yes, thanks and @DrPete I agree, very odd to do a public outing just before results.

I expect he'll play a straight bat and just offer a company profile. I think the format is 10 minutes present and 5 minutes Q&A, so easy to bat away any questions trying to get at guidance.

That's said, it will be interesting to hear the language he uses about the $60m revenue opportunity that is in their parnter network but which doesn't flow through $SGI. For me, that's the short term sugar hit (high return at minimal effort).

Thanks @DrPete appreciate your insight into the FCF and @mikebrisy .

Based on the call at 1230pm i was thinking results may be released this morning.

Will be keen to see the language used re sales and margins.

Looking through Wesfarmers results yesterday and their Industrial and Safety division led by Blackwoods for a comparative for Stealth, there was reasonable revenue growth or 3.2% to $1,009m and margin expansion from 4.8% to 4.9% which saw earnings grow to 49m. A specific all out re strength in the "mining, utilities, manufacturing and government sectors".

Just heard Mike say:

• "We are well positioned to continue our hockey stick growth"
• Referred to the $60m opportunity from 3 suppliers accessible by FY25 (I note this was previously 5)
• Continue to progress on paying down debt
• All our indicators are heading in the right direction
• On profitability "we still have some work to do"
• Reiterated the attractive economics of the hire business, emphasising its an "adjacency" (i.e., doesn't cannibalaise sales)
• Our second half is typically stronger 55-58% in H2
• Excited about efficiency opportunities ... we continue to pick up 200bps on CODB ... now at 24% aiming to get below 20% (Consistent with earlier messages)
• Competition - Blackwoods 4-4.5% market share at T/O of $2-$2.5bn - reiterating fragemented market structure
• "Having lots of fuun"

His entire demeanour was confident and measured and, importantly, very consistent with what he's said before.

Nothing to indicate the next report will be anything but positve. Although note the point from @DrPete that H2>H1.

Disc: Held in RL and SM

Mike just presented on share cafe and very solid update.

First half sales rose to 56.5m and aiming for a FY rev 125m

Gross profit 16.6m or 29.38%

Earnings 1.4m up 70%

EPS .45c up 49%

FCF 2.4m for the half

Net debt 5.8m of which 1 m is fixed and will be paid of by June 30th.

Re-itereated dividend but will outline at half year.

On track for 2025 sales of 200m and now aiming for 300m by 2028.

Many opportunities to move into inc rental division with 68% gross profit and 25% net profit

Costs for the half were down another 200 bp which is impressive. At 24% COBD aiming to reach 20%

Look forward to the half year official release

Disc ; Held on SM RL

Was anything of interest said in the webiner?share price movement suggests something was slipped

Hi @jayjayjayjay no nothing new in respect to what Mike had previously covered and as @mikebrisy stated the strength of the presentation was the consistency.

My feeling is Stealth is not well covered to provide support, so expectations were low or non existent heading into the H1 even though Mike for past 18 months has remained clear, focused and delivered (on the whole) on opportunities .

When looking at the share price response we need to put some perspective.

Based on H1 results and what is likely to transpire in H2 Stealth @ 20c and 20m Market cap Stealth would be trading on a FCF basis of just over 3x .

This is very low.

Add to this widening margins and reduced debt that IS being delivered and new channels of revenue we should see Stealth Group hit the radar of many more individual and possible some analysts.

Add to this a chunky dividend 6% and can see more upside to occur with SP.

Over the past month managed to add to already an overweight position at prices 18-20c.

In respect to the upcoming H1 results i will be looking for more detail on

1. How 200bp in CODB has been gained and the actions that twill allow allow this to fall below 20%.
2. Additionally more detail on the drive for the 60m with suppliers in revenue and the timeline on how this is likely to play our ie 20% in H2 2024 =, 80% in 2025.
3. Clarity / Confirmation on the dividend ie 30% of FCF. Can see this be nice dividend over next 3yrs plus.
4. Any acquisitions on the radar (this was mentioned today by Mike so feel there is something brewing)

Happy Holder and want to call out @DrPete for him identifying Stealth.