31/01/23
Mader has reported huge increases in revenue:
The NA result has been flagged earlier but really is a very bullish sign that their expansion into a new, and much, much larger Geography shows early signs of delivering outsized future returns.Impressively the Australian business which is much more mature still managed to increase revenue by 39% vs PCP.
Less exciting is the huge increase in debt over the last 12 months.
The explains this in part by the costs from the re-development of the Mader Maintenance Centre which allows them to now chase larger contracts. Also timing of receipts stuff which I take to be a bunch of fluff.
Clearly they are investing for growth and growing very successfully.
With time we should be able to tell how cost effective that is. Hopefully they will disclose a ROIC in the HY summary. If anyone can work it out please let me know!
The share price had run up considerably over the preceding weeks (a bit of a pattern, and has dropped off a few percent following this release)
Held
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Strong update from Mader here and SP has ticked up in last few days in anticipation.
The standout was the exceptional growth in NA, now representing ~20% of Total Revenue, from ~10% in PCP.
The bull thesis for Mader is that they can reproduce their home-market advantages oversees in the much larger NA market. This update would provide a strong vindication of this thesis. Held IRL (but not enough...
Full report here:
Edit: spelling, Maths