Mining services business NWH has really struggled in 2021 following the overall sectors path. Services companies like NWH are all about people, and the sector has battled with Covid lockdowns and difficulties with staffing which has meant that good revenue growth is not translating into strong profit growth given pressure on margins. It’s the reason why those stocks tend to always screen on the cheap side.
On a more positive note, at their AGM in late November the company maintained earnings guidance with EBIT set to be up 25% from FY21 which reads well making it disconcerting to see the stock continue to drift lower.
MM is neutral to positive NWH though we don’t intend to average our position
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