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SND - Saunders International

Discussion in 'Stocks Q-Z' started by So_Cynical, Oct 22, 2009.

  1. Dona Ferentes

    Dona Ferentes

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    Yesterday's Ann of supplying tanks to the dept of Defence bought in some buying but quickly snookered by today's half yearly and more of same.

    (Not T-34s but fuel tanks)
     
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  2. finicky

    finicky

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    Gee are they really talking about Saunders?
    From the January investment report of the Naos Emerging Company's fund (ASX:NCC) which, by the way, is trading below after tax NTA , has a good dividend history apparently and has an ex -dividend date coming up (Mar 13 I think). I am not a holder of NCC.

    Naos cmments on SND:
    "The highlight for the month came from SND which made three significantly positive announcements. The first of these related to the award of a $15 million contract from Sydney Water to build a new reservoir in Penrith.

    The second was a contract win worth in excess of $30 million from Rio Tinto to provide repair and maintenance services for up to 16 precipitation tanks. And finally, SND announced that the 1HFY20 result is expected to be between $1.2-$1.6 million EBITDA on revenues of circa $30 million, with the balance sheet having a healthy cash balance of $9.4 million.

    In our view, these announcements show that SND is shaping up for potentially its best 2-3-year period in the company’s long history. It is also key to note that one of SND’s three major competitors being CB&I, which is owned by Dow Jones listed McDermott’s (US: MDRIQ) filed for bankruptcy protection in January, effectively limiting a competitor for the foreseeable future. Pleasingly the guidance released by SND shows that the business has returned to an EBITDA margin level of ~5% in a time where few if any major projects were recorded.

    We believe with a much improved cost base and operational structure SND has the ability to grow revenue from circa $50-$60 million to closer to $100 million, and also to increase margins from the recently announced 5%
    to a figure closer to 8%-9% once the benefits of increased scale are realised and more rational pricing occurs as a result of the more benign competitive landscape."
     
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  3. Dona Ferentes

    Dona Ferentes

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    and a Covid-19 impact update from NCC
    • We do not expect any significant change to existing operations.
    • SND currently have the largest order and tender book in the company’s history with Tier-1 clients i.e. RIO, Australian Defence Force and Sydney Water.
    • Well capitalised with circa $9.5 million of cash, no bank debt and a further circa $9.5 million in PPE as at 31 December 2019.
     
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  4. finicky

    finicky

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    I recently read that the Australian government was buying oil at low prices to strategically store. But they are are storing it in the USA because we don't have our own storage facilities (tanks). Seems pathetic. Saunders makes tanks. Might have something to do with our fairly non existent refining capabilities as well?
     

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