Further info from agm and new acxq -
The new acq cmi brought in $104.3m of very sticky sales for fy23 (and is extremely capital light - and the acquisition they bought previously (ex engineering)brought in $12m
So if status quo takes their sales to 350m
They see both already growing (cmi - 2 yr ebit cagr 31% (short period i realise) and will also be very synergistic.
Also their rev is also growing this year (last 2 yr (only listed 2 yes ago) rev cagr was 26.1%)
The new acq helps to improve their margins (ebit marg will go from 10.3% to 11.7%) and also opens up new lucrative pipelines for them to grow and will also be very synergistic.
Also their rev is also growing this year (last 2 yr (only listed 2 yes ago) rev cagr was 26.1%- all organic)
The new acq helps to improve their margins (ebit marg will go from 10.3% to 11.7%) and also opens up new lucrative pipelines for them due to the synergy of the two businesses.
More Areas of growth-
- Ipg now can do the entire infrastructure and construction for ev chargers (some just got put into glenbrook- it was a big process) - eg. Site assessment, infrastructure design, all the brand products needed - they sell, they then can manufacture the ev charging boards, and they can now also do all the engineering and construction with services and maintenance ongoing.
- They are now getting a lot if data centre work - they can now design, provide, engineer, install, etc.
- Huge tailwinds in electrification and energy transition
- Busduct is a great new product and growing very well
- They installed a bus development unit and its performing above expectations- bringing in a strong pipeline of business
- Expanded warehouse space bu 4000 sq m to free up 30% capacity in distribution centre
- Will continue to seek out accretive acquisitions - focussing on synergies, cultural fit, to enable them to expand product portfolio- decarbonisation, decentralisation, digitalisation
- Plenty of room to grow
- To grow into new mkts and new geographies
- Increasing prices and to sell more
- Previous acq - gemtek and addelec integrated perfectly and is the reason they can do the whole gamut of ev charging stations
- Very confident in h1fy24 guidance - ebit up approx 20% to 13.5-14m (pre impact of cmi acq - remembering it will be strongly accretive) - expect second half to be at least same as h1 - = 27-28m minimum (approx 20% growth)
