8 Oct 20: SRG held its AGM today.   There was nothing particularly new in the AGM. 

• They have won $385m of contracts since 1 July 2020.
• Further imminent / near-term contract wins expected
• They confirmed the FY21 EBITDA guidance oef $38-$42m. 

I was disappointed though that no other shareholders asked any questions at the AGM.

I asked about their Free Cash Flow which was negative in FY20 and whether they expected it to turn positive in FY21.  Operating cash flow should increase but the new contracts will require capital and they are in a growth stage so they were not prepared to point to it being FCF positive in FY21.

I asked whether their margins were being maintained with the large of new contracts.  Yes, they are maintaining margins at around 11%.

I asked whether the company would consider a on market share buyback.  The chairman's answer was that they are not considering a buyback.

The AGM slidedeck can be downloaded from this link.

https://www.asx.com.au/asxpdf/20201008/pdf/44nh5kwj7wsz4k.pdf

Impressive list of contract wins for SRG.  More than $100m since 1 July 20.

23 Jul 20: $40m specialist facades contracts in Syd and Melbourn.

21 Jul 20: $25m 5y access and maintenance services contract with Yara Pilbara

15 Jul 20: $25m contract with John Holland for the new Government backed $564m Victorian Heart Hospital.  SRG will design, supply and install specialist engineered curtain wall facade.

7 Jul 20: NZ$25m 8 yr contract for inspection and specialist services on the Auckland Harbour Bridge. 

16 Mar 20: $70m 5 year Drill and Blast Contract with Saracen.

27 Feb 20: $72m Integrated construction package with Multiplex for the One The Esplanade project at Elizabeth Quay in Perth.  Design, supply and installation of engineered curtain wall facade for the 29-level, 54,000sq project that will accommodate approx. 3,000 people.

29 Jan 20: $90m multi-disciplinary Asset Services contract with Alcoa