Pinned straw:
Okay numbers for SCEE but the reason to be excited about this company are the structural tailwinds behind the company, which they have spelt nicely in the highlight section of the media release announcement.
Short-term investors might have expected a little more growth this year (not sure the guidance) with a posible sell-off in the share price, but their future expectations for FY25 plus 'FY26 and beyond' should soothe any concerns. Maybe. I don't know. Market can be silly in the short-term.
Yes, really solid performance here. Plenty of plusses and just a few negatives...well, there's only one!
SXE operates on very skinny NPAT/REV margins & they are getting skinnier (FY24 of 3.97% v FY23 OF 4.32%) - niot much margin for error in any fixed pricing scenarios.
That said, they are gyrating away from the resources sector to a heavier concentration on infratstructure and commercial (and particularly data centre stuff) + they now have a higher degree of recurring revenue.
The plusses are many - growing revenue, growing order book, high participation in the 'in vogue' sectors such as electrification and decarbonisation, grwowing $ value of EBIT, NPAT, EPS & ff divs.
One of the not so obvious plusses of SXE is management's ability to grow ROCE (FY24 @ 16% isn't too shabby) on the back of some very smart acqusitions. They acquire at the rate of one every two years and the last four have been outstanding - not one dud - Datatel, Hetday, Trivantage & the most recent being MDE (which admittedly needs to prove up) Think EBITs of 2.1x, 2.9x, 3.4x and 4.3x. - wonderful buying. I expect that ROCE to continue to improve.