Mader Group founder Luke Mader has sold 4% of his stake and put a nice little ~$62mil into his back pocket. Don't worry, he still retains about 51% of the business.

They have also come out this morning and reaffirmed guidance, and disclosing that they've welcomed a strategic investor to their register.

Don't hold, has always been "too expensive", yet it shows what execution can do to price over time. EPS has consistently increased, as has the multiple.

Partial to a WA and Perth-based company, so will take a closer look over the coming days. Maybe as Luke lightens his load further I'll take some of his share.

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:

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02587249-6A1117523?access_token=83ff96335c2d45a094df02a206a39ff4

Edit: spelling, Maths

Matt Joass Presents at MicroCap Leadership Summit 2022

Business review starts at 5:30

https://www.youtube.com/watch?v=WfNEFhoO5ks

Mader provided a quarterly update this morning. Results vs PCP look great, however QoQ is a little more subdued with EBITDA actually decreasing. Revenues continue to grow consistently. The North American expansion is where most of my attention lies and as you can see from the QoQ table I've been tracking below this segment is accelerating.

Mader reaffirmed their full year guidance however they are on track to exceed.