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Last edited 2 years ago
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#ASX Announcements
stale
Added 2 years ago

@DrPete it looks like your prediction of 15.5M was pretty close, with receipts from the first quarter being $16M and their SP has slipped since your last report, not quite to 13 but heading that way.

Not that it changes caution about this company but it is interesting to note their fairly rapid pivot away from the covid hotel income to more fleet hire income and it will be interesting to see if this can substitute for that income. Their purchased fleet was 80% leased in the first month and may well be an intended add on to their purchase of Karratha machinery. Their labour hire business has also pivoted away from covid hotel staffing (by necessity!) and more towards the mining sector it seems.

I have not followed past management successes to know how good they are but am interested to see how they manage to steer this ship over the next 12 months. We certainly need more clarification on income from the fleet hire business for this to become really interesting again.


SSH quarterly Oct 2022.pdf

#ASX Announcements
stale
Added 2 years ago

SSH update June 2022.pdf


Handy update! Love your work @DrPete123 . Plenty of room to move for this one, even if your valuation is overs. With good value add acquisitions it could easily go beyond your valuation too.

#ASX Announcements
stale
Added 3 years ago

SSH acquistion.pdf

Seems like a nice acquisition, just can't find anything about the age of the machinery - if anyone else can please post. Certainly looks like it is good cash wise and is well funded. This business will be a slow burn but seem to be building a foundation to become a large scale player.

#Bull Case
stale
Added 3 years ago

SSH update 2nd quarter 2021.pdf

SSH quarterly link. Seem to be putting in place some good stuff. Paying off debt too. Expanding licences around the country, readying for expansion/acquisition.

#Financials
stale
Added 3 years ago

SSH update.pdf

Revenue increasing well for these guys. Certainly a developing story.

#Financials
stale
Added 3 years ago

SSH quarterly.pdf

Nice update from a young company. Seems like they are putting good things in place for a strong year.

#Business Model/Strategy
stale
Added 3 years ago

@DrPete, this is probably the most simple read that gives a good background of the company fairly briefly.  It is their investor presentation from 17th Sept.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02422901-6A1050831?access_token=83ff96335c2d45a094df02a206a39ff4

#Bull Case
stale
Added 3 years ago

Sorry for delay getting more info.  Just got out of hotel quarantine so had to say hi to my wife for a few days!!!  Latest release attached.  Very interesting company in its early stages.

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#Bull Case
stale
Added 3 years ago

Interesting recent IPO for SSH Group (SSH), a small company based in WA.

SSH delivers services and products through 3 divisions – safety, people and equipment.  The Safety Division includes providing security, site and facility safety, road safety and crisis support services.  The Equipment division ties in to the Safety division nicely by providing site-essential safety equipment for hire (many long term contracts for large scale projects).  The People Division provides labour hire, recruitment, placement and associated services.  Their base is in WA but they see opportunities to enter the national market which they believe is quite fragmented.  There could be the scope for organic and acquisition based expansion.  SSH Group estimates there is $39.3B of market revenue which is not serviced by major players.

The founder of the company is Daniel Cowley-Cooper and he has become the Managing Director and still holds over 25% of the stock (shares held in escrow for almost another 2 years, performance rights not available for 3 years).  Stefan Finney is the COO and ED, has been with the group 5 years and has good previous experience managing multiple business units.

There is some risk that major projects dry up, although it appears infrastructure spending is not going away in a hurry.  They have landed big contracts before and seem to have established good working relationships with clients so there is no reason they can’t continue to win big projects.  Barriers to entry for other players is it requires significant investment in equipment to become a player.  

Revenue and gross profit have increased at a good rate.  Figures a little difficult to follow going from private to public but revenue seems to be heading north rapidly (28M for first half 21 and gross profit 3M compared to full year 2020 of 15M and 4.2M), NPAT increasing well on a % term but still small.  Money from IPO used to purchase more equipment that can be rented at a good return over long periods for large projects.

Comments welcome.  Not held yet.

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