20/10/2022 09:34

Service Stream (SSM) 71c

The servicing company for essential networks across Australia held its AGM yesterday and provided guidance for the year ahead, although it was very non-descriptive. They said that group trading performance over Q1 was in-line with Management’s expectations while they expect continued revenue and profit growth during FY23, on the back of a full-year contribution...

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31/08/2022 09:30

Service Stream (SSM) 72.5c

The servicing company for essential networks across Australia delivered a much weaker FY22 result than we expected and failed to give guidance for the year ahead, deferring that until their AGM in October. Weaker earnings have led to a weaker dividend now and we’ve lowered our assumptions for future payouts accordingly. Top line revenue is not the issue, there is demand for SSM services and that led to a beat in terms of annual revenue achieved plus...

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31/08/2022 09:29

Active Income Portfolio

The portfolio was higher during the week up 0.38% with cash at an elevated 12%. Pendal (PDL) was the top performer adding 7.55% following the confirmed tilt by Perpetual (PPT) while G8 Education (GEM) edged 4.12% higher following their results which showed improving occupancy levels in their centres. On the flip side, Service Stream (SSM) -14.20% was the biggest drag on a weak FY22 result which we cover below.

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24/08/2022 09:28

Active Income Portfolio

The portfolio was down -0.70% in the week, underperforming its absolute return benchmark although outperforming the -1.8% decline in the market. Cash in the portfolio is elevated sitting at around 12% while the portfolio is up 2.89% for the financial year to date. The biggest drag on returns this week came from Service Stream (SSM) -17.96% following their FY22 results – click here to view. On the flip side,  both...

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23/08/2022 17:30

Service stream (SSM) 85c

SSM –17.16%: A weaker than we hoped FY22 update from SSM, particularly given how upbeat management were the last time we spoke with them, suffice to say, that’s why the stock fell 17% today. Revenue of $1.565bn was strong and ahead of expectations however EBITDA from operations at $91.1m was around 5% weak while adjusted  NPAT of $31.4m...

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17/08/2022 09:13

Active Income Portfolio

The portfolio was up +0.73% for the week with cash now at 6% following the sale of APA Group (APA). The portfolio is up 3.76% for the financial year to date, well ahead of its absolute return benchmark (RBA cash rate +4%).  Service Stream (SSM) +4.57% and BHP Group +4.35% were both strong while Centuria (CNI) +3.23% bounced back from recent...

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03/08/2022 09:37

Active Income Portfolio

The portfolio added 1.16% for the week with cash at 2%. For the month of July, the portfolio was up 3.11% recovering well from a tough period in markets. Commonwealth Bank (CBA) +5.42% was strong, as was Pendal (PDL) +4.33% and Transurban (TCL) +4.25%, while Service Stream (SSM) -6.25% and Centuria Capital (CNI) -5.08% were the only two positions that fell.  

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27/07/2022 09:33

Active Income Portfolio

The portfolio edged +0.89% higher during the week while cash sits at ~2%. Service Stream (SSM) +7.77% was the standout while a bounce back in BHP +4.53% and Pendal (PDL) +4.29% also added to the ledger. The main drag was G8 Education (GEM) which fell by -5.45% while a -2.42% pullback in APA Group (APA) was also a negative influence. The composition of the...

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20/07/2022 09:27

Active Income Portfolio

The portfolio was up +0.68% for the week with cash still sitting at 2%, although we will get a further inflow given the redemption of the CWNHB which implies the true cash position is ~6%. Pendal (PDL) was the top performer during the week up +5.48% - more on this below, while Service Stream (SSM) +3.13% and Wesfarmers (WES) +2.68% also did well, pleasingly these...

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13/07/2022 10:29

Active Income Portfolio – Amendments

We are making a number of changes to the Income Portfolio.

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