Consensus community valuation
On 12th May, just over 6 weeks ago, I updated my valuation for SRG Global, moving my price target up from my previous one ($1.18) to $1.67 and gave my reasons, basically because they were growing at a good clip and their M&A had been working for them in terms of acquisitive growth on top of their organic growth. Everything was heading in the right direction at a good clip.
SRG closed at $1.41 that day. Today they have risen +7.59% to close at $1.70 (after tagging $1.75/share earlier in the day), which is a new 15 year high for them. The last time SRG's share price was up here they were called GCS (Global Construction Services) and it was May 2011. They also had completely different management and were a completely different company.
Seven years after that all-time high in 2011, GCS acquired SRG in what they called a merger of equals, and SRG's MD, David Macgeorge took over that same MD role in the larger merged company, which changed it's name to SRG Global and changed it's ticker code from GCS to SRG (which was the same ticker code that SRG had been using before the merger).
Over the next 12 months, everybody who had worked in a senior position (both Management and Board members) for GCS before the merger left SRG Global so while GCS actually took over SRG - likely because GCS had a slightly higher market capitalisation at the time the merger was announced - it was really SRG taking over GCS. Even Peter Wade, who had been the GCS Chairman and hung around as the Chairman after the merger, quit after a year paving the way for Peter McMorrow to resume his prior role as Chairman of SRG.
The rationale for the merger between GCS and SRG was to create a stronger combined entity with a broader service offering and increased scale, positioning them as a leading global specialist engineering, construction, and maintenance group. This enhanced capability would potentially allow the merged company, SRG Global, to better partner with clients throughout the entire asset lifecycle. The merger also aimed to achieve cost synergies and revenue growth through increased cross-selling opportunities. As they always do.
A more honest answer would be that it brought together GCS' experience and clients in the west coast energy sector with SRG's east coast and international construction and infrastructure industry experience and clients to create a larger and stronger company, and one which was supposed to be admitted to the ASX300 Index at the next rebalance in March 2019, or 2020 at the latest. It actually took another 6 years (after that March 2019 index rebalance) to achieve that desired index inclusion because the share price sank after the merger. SRG were only added to the ASX 300 Index this year.
The following couple of years were not a nice ride for SRG shareholders (I was one of them at the time), with their share price being sold down to as low as 20 cps in May 2020. However, it's been a nice uptrend since then, an uptrend which has moved into an even higher gear more recently.
Note - that chart above only shows monthly data points, so it doesn't show the full extent of the drawdown in 2020.
So today SRG released this little gem: $850m-of-Contracts-Secured-in-Diverse-Sectors.PDF
Multiple contract wins across 6 different sectors:
The market liked it, and so do I. Pity I'm not currently holding any SRG shares!
It's not a bad looking chart. Bottom left to top right over the past year, with just the one stumble in Feb/March after the half year results, but they've made up all of that and plenty more since then.
Not a bad looking chart, eh!?!
But is saving up a heap of recent contract wins and then releasing them all in the one announcement during the final week of the financial year a good look?
Well that likely depends on who you are and what your personal incentives are I suppose.
If we look back at SRG's AGM on 28th November 2024, shareholders were asked to vote for what looked like some very generous "Incentive Performance Rights" for SRG's MD, David Macgeorge (DM) and also for Roger Lee (RL) who is an Executive Director, Chief Financial Officer (CFO), and Co-Company-Secretary at SRG Global.
Before joining SRG, RL held various executive roles at Broad Group Holdings (now part of Leighton Contractors Group) including Director/CFO and Managing Director. He also held other Executive Finance roles at Leighton Contractors (now known as CPB Contractors, a wholly-owned subsidiary of CIMIC Group which is majority-owned by Hochtief, a German company, which is ultimately controlled by Grupo ACS, a Spanish construction giant).
But for the purposes of this straw, we're talking about Incentive Performance Rights for DM & RL, SRG's MD & CFO.
But wait, there's more folks!
Shareholders were ALSO asked to vote on additional "Retention Performance Rights" for the same two gentlemen at the same AGM.
Some Details:
[Exceprt from the Notice of Annual General Meeting & Proxy Form, released to the ASX on 25th October 2024]
First the Incentive Performance Rights:
In the context of SRG Global's various Remuneration Reports, General Meetings and associated resolutions, the term "ASR Hurdle" refers to a performance condition tied to the company's Adjusted Shareholder Return (ASR). The ASR is a metric that measures the total return to shareholders, factoring in both share price appreciation and dividends, adjusted for certain items to provide a clearer picture of the company's performance
And now the Retention Performance Rights:
How happy were shareholders to wave that lot through? Well, the resolutions were passed, however there was a protest vote, as shown below in the orange squircles:
SRG is still a relatively small company without much insto ownership at this point, so proxy advisers didn't really come into play very much. There's DM and a few (not many) supportive small cap fundies onboard and a lot of retail shareholders. ETF provider Vanguard Group is the only current substantial shareholder of SRG (with 5.01%).
SRG were only added to the ASX 300 Index in March this year (3 months ago, i.e. after that AGM in November last year), so they haven't been on many people's radars up until very recently. And most market participants probably still don't know anything about them today.
As you can see, the share price as at June 30th 2025 (this coming Monday) is the biggest determining factor in the ASR Hurdle that determines how much of the Incentive Performance Rights (IPRs) vest to DM and RL.
Half of those IPRs depend on EPS hurdles (I like that part!), and the other half depend on the ASR which is mostly dependent on the share price at June 30th.
So the SRG share price on Monday (30th June) will determine how much of a possible 275,000 IPRs (half of 550,000) David Macgeorge receives, and how much of a possible 225,000 IPRs (half of 450,000) Roger Lee receives, and that will happen again each year for the next two financial years also (they can earn the same number of IPRs each year for 3 years under this plan). The other half depends on SRG's EPS. But - to be clear - the EPS half is NOT affected by the share price, and the ASR half is not affected by the EPS, each half has its own distinct hurdle.
At first glance, it looked like the Retention Performance Rights (RPRs) (the other Rights) don't vest until after 30th June 2029, as they are for a period of 5 years from 1st July 2024, however it says in the explanatory notes that: The Retention Performance Rights will be issued to the Related Parties (or their respective nominees) no later than 3 years after the date of the Meeting (or such later date as permitted by any ASX waiver or modification of the Listing Rules) and it is anticipated the Retention Performance Rights will be issued on one date.
It also says: The Company values the Retention Performance Rights at: (a) $1,944,000 for David Macgeorge; and (b) $1,296,000 for Roger Lee, being the value of the Retention Performance Rights) (based on the valuation methodology set out in Schedule 5).
And it should be noted that those RPRs have ASRs as the sole hurdle, so, again, the SRG Share Price will be the largest determining factor in how many of those RPRs DM and RL receive, whenever they receive them. But only the SP on 30th June each year -- that's the day that matters. The SRG share price throughout the rest of the year doesn't matter at all in terms of those Rights hurdles. Just the June 30th share price each year.
So, yeah, I reckon there's some good motivation there for SRG's MD and CFO (who is also an executive director) to release all of this good news so close to June 30th and have the share price react positively to it.
And I don't think I'm being overly cynical either - show me the incentives and I'll show you the outcome (Charlie Munger).
That said, there has to be good news there to release, and there was, so it isn't nothing, it's something, I'm just saying perhaps the time to be buying SRG is probably after their half year results in Feb or March when their share price sometimes slumps - as it did this year - rather than close to June 30th when their management is MORE incentivised to get the SP elevated.
Whatdayareckon?
Scroll down - latest update is at the bottom:
Early August 2019: 14-month price target - by October 2020. I think they'll have a good FY20 and they'll continued to be positively re-rated by the market as more and more good news emerges.
05-Feb-2020: When I set that 77c PT six months ago, SRG had plenty of upward momentum. Not so much lately. More down to sideways. However, 77c is still doable by October 2020 (my original target date) if a few things go right for them. I'm sticking with the 77c price target, even though it's almost double their current SP. As an SRG shareholder I may be a little biased towards them, but I reckon they can do it. IF a few things go right for them.
08-Aug-2020: Okaly Dokaly. Here we are - another 6 months have passed, and SRG spent most of that time drifting further SE - getting down to as low as 18 cps in March, before a bit of a recovery, then dropping back down to 19 cps on July 1st. They did however rise through July to peak at 31 cps on the 28th. As I type this, they last traded at 29.5 cps.
In just the past month, starting from July 7th, they have made SIX separate new contract award announcements, including a NZ$25m Transport Infrastructure Maintenance Contract, a A$25m Specialist Facades Contract, a $25m 5-Year Access and Maintenance Services Contract with Yara Pilbara, another A$40m of Specialist Facades Contracts two days later, then A$30m of Water Infrastructure Projects with WaterCorp (WA), and another $NZ50m of New Work in NZ, plus that their NZ business had now fully returned to normal levels of operational activity following the easing of COVID-19-related restrictions there. On the back of that their SP rose +33.33% in July - from 21 cps to 28 cps, getting as high as 31 cents, and closing out last week at 29.5 cents.
However, we saw a similar flurry of new contract announcements in the first half of July last year, and a subsequent SP move up from about 50 cps to around 60 cps, but then the momentum reversed and they fell back down to that 18 cps low in March this year.
It COULD happen again...
However I'm still holding SRG, and still expecting them to get their act together at some point and convert all of this work into profits. But what are they worth? While I wouldn't pay 77 cps for them as they currently are, I think they can get back to those sort of levels within 2 years, so I'm happy to have a 12 month price target for SRG of 77c. They have some positive momentum currently - finally, but they have disappointed shareholders (including myself) since the "merger of equals" between the "old" SRG and GCS (Global Construction Services) to create SRG Global, and there is always the potential there for further disappointment.
I said last time that 77 cps still looked OK IF a few things went right for them. These recent contract wins are a good start. They're a small company - their market cap was only $94m at the end of June (when their SP was 21c), so these contracts, while they look pretty insignificant in terms of individual revenue value, actually ARE significant to a company like SRG Global. They need more to go right for them to reach the potential I'm looking for, but I think it can happen.
Sticking with a PT of 77 cps, but making it a 2-year Price Target, so 77 cents by August 2022.
06-Feb-2021: Have reviewed this once again, as it was marked as "Stale" yet again. The positive NE trajectory of their SP over the past 7 months has been encouraging, and I still feel they can make it up to 77c by August 2022, so no change to that 77c PT at this point. SRG continue to make semi-regular positive new contract and contract extension announcements, and I'm still backing their MD, David Macgeorge, to build this company back up to fulfil some of their vast potential. They should be beneficiaries of increased infrastructure spending in the region, particularly in Australia, and particularly on dam walls and large bridges, plus they have positioned themselves well for multi-storey building facade repair/replacement work (that I have discussed elsewhere). They have multiple strings to their bow. I still hold SRG shares.
09-Aug-2021: SRG have risen +205% since their 18 cps Covid-19 low on 24-Mar-2020 to the 55 cps they closed at on Friday. They retested that low in late June, with tax loss selling, and closed at 19 cps on July 1st last year, however they are back up to 55 cps now and I think they'll likely go higher when they report this month. I have given plenty of details of their history and what they do above and in various straws here. Bottom line (today) however is - I still think 77 cps is a good price target for SRG, and it looks a lot more achievable today than it did one year ago.
2024:
12-April-2024: SRG's SP has been heading northeast since late January (from 65 cps up to 82.5 cps recently (a new 12-month high for them), and they're still around 80 cps now. It's late, so I'll link to their latest presentation: Euroz Hartleys Rottnest Island Convention Presentation on 13-March-2024.
Don't be put off by that rediculous cover page, it gets better.
It's 22 slides long, but here for your viewing pleasure are the 5 slides I consider to be most important to the investment thesis. If you're not interested after these five, then you're likely wasting your time looking at the rest of them. This company is right up my alley, in my wheelhouse so to speak, so I'm certainly interested, but they won't be for everyone.
Debt free (now), cashed up, great cash conversion, growing at a good clip, profitable, albeit with rather ordinary margins (see bonus slide below) which is not altogether uncommon in their sectors, paying good fully franked dividends that have been increasing since 2020, have just upgraded FY24 EBITDA guidance, are successfully transitioning to annuity/recurring earnings type work, and they have management that have proven that they won't chase work unless it's profitable work that suits their skill set (this is from personal experience from talking with Tony Hansen who held SRG in his EGP CVF and talked to their MD David Macgeorge reasonably regularly - see page 8 of his August 2023 Report plus evidenced by SRG's lumpy revenue in prior years which backed up David Macgeorge's stated views on not chasing unprofitable or barely profitable work and that he would rather have a division doing nothing at all than losing money).
Also, the GCS people (from the SRG-GCS merger in 2018) appear to have either left the company or got with the program now after the very disappointing couple of years directly after that 2018 merger of Global Construction Services and SRG to create SRG Global and the company is clearly back on track.
There is plenty to like here.
I've added them back in to my Strawman.com portfolio and I'm looking to get back onboard SRG in one of my real money portfolios as well soonish - they're on a watchlist.
Website: https://www.srgglobal.com.au/
SRG Global - Construction, maintenance & mining services – SRG Global
About: https://www.srgglobal.com.au/who-we-are/
Investor Page: https://www.srgglobal.com.au/investors/
What We Do | SRG Global - SRG Global
Our History | Who We Are - SRG Global
Engineering & Construction Services | What We Do - SRG Global
Mining Services | What We Do - SRG Global
Asset Maintenance | What We Do - SRG Global
Asset Care NDT solutions - SRG Global
Engineered Products | What We Do - SRG Global
Access Solutions | Scaffold and rope access - SRG Global
(25) SRG Global: Overview | LinkedIn
SRG Global's MD, David Macgeorge.
Appendix-4D-1H-FY24-Half-Year-Report.pdf (srgglobal.com.au)
SRG Global FY24 Half Year Results Investor Briefing (youtube.com)
That'll do.
10-Sep-2024: Update (post FY24 results):
Not holding this one today, but they're doing well. The indigestion from the swallowing of GCS into SRG via that reverse takeover (where GCS - Global Construction Services - acquired SRG and then changed their name to SRG Global and everybody from GCS left the company and the management that ran the old SRG remained running the "new" SRG) seems to have passed now, and David Macgeorge (SRG's MD) has the company humming now.
I used to hold SRG IRL, as well as here on SM, and I got back in here briefly for a shorter term trade earlier this year, but then sold out and took profits after they rose a bit. Had better ideas. However, SRG would have been a good one to have kept here in my Strawman.com portfolio - they've been good to me over the years, mostly.
With their FY24 full year results released on August 20th, they also announced a CR to help pay for the acquisition of Diona Pty Ltd, who are (according to SRG) in a market leading position in program and asset management services in water security and energy transition with utilities / government agencies under long-term collaborative program and asset management agreements, complementing SRG Global’s current end-to-end full asset life cycle capability in water, defence, resources, transport and energy transition.
SRG have had a plan, and that plan has included increasing recurring revenue from MIS - Maintenance and Industrial Services - which is far less lumpy than their traditional E&C - Engineering and Construction - contracting and sales revenue - and in FY24, SRG's MIS division (mostly recurring revenue) represented 62% ($661.5m) of their $1.069.3 billion of revenue vs 38% for E&C ($407.8m) and what's more, that MIS income was far more profitable than the E&C income, with EBITDA and EBIT(A) for MIS being more than 3 x their corresponding EBITDA and EBIT(A) for E&C - see below:
Source (above slide and the 3 slides below): SRG FY24 Results and Diona Acquisition Announcement [20-Aug-2024]
The market reacted positively to both the results and the acquisition announcement:
SRG's margins are ordinary (single digit), however they are profitable, and growing everything except their margins, which are roughly stable; their margins are down a bee's whisker on FY23, but still above the previous two years (see slide above).
The market also liked the outlook statement, particularly the increased annuity / recurring income which they predict will represent circa 80% of their earnings in FY25 (the financial year we are in now) and beyond (see below):
Just on that Diona acquisition...
- Earnings Accretive? Tick!
- Margin Accretive? Tick!
- Complementary Businesses with significant cross-selling opportunities? Tick!
- Assists with that push into further annuity-style recurring revenue? Oh Yeah! Big Tick!
Source: FY24 Results and Diona Acquisition Announcement [20-Aug-2024]
See Also: FY24 Results and Diona Acquisition Presentation
And: Diona Acquisition Announcement
Those were all released on August 20th - and the day after (the 21st) they released this: SRG-Global-successfully-completes-$60m-equity-raising(21-Aug-2024).PDF
So, with all that, being continued progress and a positive acquisition that should provide some acceleration to their plan, I'm happy to raise my price target once again for SRG, this time to $1.18.
SRG's results presentation stated that their market capitilisation was was around $500m. It's now 20% higher at just over $600 million, and they're in the All Ords, but need to be bigger to get into the ASX300 index - with the smallest ASX300 companies having market caps of around $720 to $750 million.
This moves SRG one step closer, but more importantly is positive for the overall business on multiple fronts, including shareholder returns - due to increasing their margins and being EPS accretive - and increasing their annuity / recurring revenue - and making the company far less reliant on winning big E&C contracts.
All good. Not among my very favourite companies in the sector, due to their low margins, but there are also a lot of worse companies in the sector than this. SRG are certainly making the right moves, and they are moving in the right direction now.
12-May-2025: Update:
Raising my price target to $1.67 today, to reflect SRG Global's continued progress.
This is a company that is well managed and while their margins are not huge, they are improving (see blue rectangle below) and despite a couple of acquisitions over recent years, which is one way to achieve increased Revenue and Earnings (and to assist their MD to hit his remuneration incentive hurdles), they are also increasing their earnings per share (and dividends per share) (see green rectangle below) which matters in terms of generating positive TSRs (total shareholder returns).
Source: 1H FY25 Half Year Results Announcement.PDF
See also: 1H FY25 Half Year Results Presentation.PDF
Here's what ChatGPT said when I asked for a summary of SRG Global's acquisitions in the past 5 years:
Over the past five years, SRG Global has strategically expanded its capabilities through several key acquisitions, enhancing its presence in the infrastructure, building, and automotive sectors.SRG Global+3LinkedIn+3Australian Securities Exchange+3
1. Bartek (December 2022)
SRG Global acquired Bartek, an engineered products business based in Queensland, for AUD 2.6 million. This acquisition significantly expanded SRG Global’s product range in the infrastructure and building sectors, particularly in rebar couplers, precast ferrules, starter bars, threaded anchors, and rebar threading services. Bartek's over 20 years of experience in the engineered products segment bolstered SRG Global’s supply chain capability through improved vertical integration and increased its geographic footprint in engineered products. MarketScreener+7NewsnReleases+7srgglobalproducts.com.au+7NewsnReleases+4Kapitales+4Australian Securities Exchange+4Kapitales+2Australian Securities Exchange+2NewsnReleases+2
2. Diona (February 2023)
In February 2023, SRG Global entered into an agreement to acquire 100% of ALS Industrial Pty Ltd (ALS Asset Care) for AUD 80 million. This acquisition was expected to be accretive to FY23E earnings before any revenue and cost synergies, enhancing SRG Global’s exposure to growing sectors, particularly in water security and energy, and expanding its presence on the east coast of Australia. SRG Global+2Australian Securities Exchange+2Argonaut+2
3. Formation of RESRG Automotive (April 2025)
In April 2025, SRG Global merged with REHAU Automotive to form RESRG Automotive, a global supplier of coated exterior systems and components to automotive OEMs. This merger, facilitated by Atlas Holdings, combined the strengths of both companies, bringing a combined 160 years of experience to serve the world’s leading automakers. PitchBook+4Atlas Holdings+4Plastics News+4Atlas Holdings+3REHAU+3Atlas Holdings+3
These acquisitions reflect SRG Global’s strategic focus on diversifying its portfolio and strengthening its position in key industrial sectors.
--- ends ---
One problem with that - the #3 acquisition listed above had nothing to do with the Australian listed SRG Global (ASX: SRG) - it's a different company in the USA who shares the same name - see here: https://www.atlasholdingsllc.com/news/atlas-holdings-launches-resrg-automotive-with-acquisitions-of-rehau-automotive-and-srg-global/
So be aware that there are TWO SRG Global's, although that overseas one has now been absorbed into Atlas Holdings, so should not generate any further news in terms of "SRG Global".
The following link will take you to the history of that other (US-based) SRG Global that is NOT ASX-listed when they were part of a company called Guardian Glass - from 2009 to 2019. https://guardianglass-srg-stage.adobecqms.net/content/srgglobal/en/our-company/history.html.
It says that SRG Global™ was born in 2009, combining the trim operations of Guardian Automotive (the "G") and Siegel-Robert (the "SR") to form one of the largest manufacturers of chrome plated plastic parts in the world. The new company was headquartered in Warren, Michigan, with operations around the globe. Again, nothing to do with the SRG Global listed on the ASX.
Shows the limitations of ChatGPT and other generative AI tools - in this case when there are two companies with exactly the same name.
The overseas SRG Global was an automotive parts manufacturer, while the ASX-listed SRG Global is a diversified infrastructure services company that was born out of Australia’s greatest engineering challenge, the Snowy Mountains Hydro-electric Scheme, in 1961. For years, SRG's main competitive advantage was their IP around ground anchors and other engineering solutions for dam walls and later small footprint structures that are significantly larger above ground than they are where they meet the ground. This doesn't mean the structures are small, just that they have a relatively small footprint as a percentage of their overall size. Below are a couple of examples:
That's a 6-lane highway up there (3 lanes each way with a high divider in the middle - it's Adelaide's South Road extension that connects the north end of South Road to the Northern Expressway.
That (above) is the view from below. Below is a view up top of the northbound three lanes, then following that the southbound three lanes:
SRG now also do specialty building facades:
Source: https://srgglobal.com.au/sectors/specialty-building/
They also provide parts and equipment for builders, and they have two main divisions, similar to the larger Monadelphous Group (MND): E&C (Engineering and Construction) and MIS (Maintenance and Industrial Services).
Source: https://srgglobal.com.au/who-we-are/
I don't currently hold SRG, but they remain on my radar - I've held them in prior years and done alright out of them.
In summary, they have some decent recurring revenue through their MIS division, and the have some specialty areas within their E&C division that they are market leaders at, and while they are still a small company that remains under most people's radar, and they have fairly ordinary margins, their margins aren't too bad for the industries that they operate in, and their margins have been steadily improving (margin expansion), while a few of their competitors have seen margin compression (reduced margins) over recent years.
Most importantly, they are expanding both organically and inorganically (via acquisitions) and their earnings PER SHARE are growing, enabling them to increase their dividends per share as well as to fund their growth.
They do use debt for acquisitions, but they pay it down rapidly. They are currently debt free (no net debt).
And they have a $3.4 Billion Order Book and have called out an opportunity pipeline worth $8.5 Billion.
They have also upgraded both revenue and earnings guidance alongside those H1 results in Feb:
Not currently holding, but plenty to like here.
A nice set of results for SRG today. The ability to pass on costs is evident in how well margins have held up over the last couple of years. The overarching story here is the transition to being primarily an asset maintenance business with some construction exposure. The AM business continues to grow nicely (segment result below). The EBITDA contribution of the Asset Care business was $5m in the FY segment contribution but, assuming no growth, will contribute $15m in FY24.
Decent revenue tailwind across the business, and a business that is reducing the earnings risk from mispricing construction projects has the potential to bring rising earnings and a rising multiple.
24-Aug-2021: SRG Global (SRG) reported their full year results this morning, and they have delivered increased profit, cash and doubled their dividend, and they are forecasting strong growth in FY22 .
Highlights
- Revenue Up 4% to $570m (from FY20)
- EBITDA Up 61% to $47.1m
- EBIT(A) Up 151% to $25.1m
- Strong operating cashflow (FY21 Net Cash of $12.2M from FY20 Net Debt of $8.4m)
- Well-funded for Growth - available funds of $88.2m + undrawn $27.7m equipment finance facility
- Final Fully Franked Dividend Doubled to 1 cent per share (total FY21 dividend of 2 cps)
- Record $1b Work in Hand, Up 41% (from 30 June 2020)
- Strong opportunity pipeline of $6b in diverse sectors and geographies
- Two Thirds Annuity Earnings Profile in FY21 and beyond (recurring revenue)
- Long term Strategy on track and well positioned for long term sustainable growth
- FY22 EBITDA expected to be ~15% higher than FY21 EBITDA result
"The FY21 results demonstrate the continued execution of the SRG Global strategy. The significant level of new contract wins and the record work in hand of $1b is underpinned by demand for the Company’s engineering led, end-to-end solutions, across the asset services, mining and construction sectors."
"The Company is well positioned for long term sustainable growth with two thirds annuity-style earnings and positive exposure to a diverse range of sectors and geographies across the asset services, industrial and mining sectors and government stimulus programs in the infrastructure and construction sectors."
"SRG Global has significantly strengthened its financial position over the past twelve months, moving from net debt of $8.4m to a net cash position of $12.2m. It has also improved its liquidity to $88.2m of available funds, plus an additional undrawn $27.7m of equipment finance facility, with the Company well-placed to fund future growth."
I hold SRG Global (SRG) shares. They have been through a period since the merger with GCS (Global Construction Services) where they have certainly underwhelmed the market and have not lived up to their own or the market's expectations. However, I feel they are starting to live up to that potential now, starting with this positive FY21 result, and strong guidance for FY22 (FY22 EBITDA expected to be around 15% higher than FY21 EBITDA). They certainly have some tailwinds now, and the headwind of a tight labour market and skills shortages - particularly in WA - has not bothered them very much at all in FY21, which is a good sign for the future as well.
