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 was around ~20% below consensus – the dividend of 1cps was also light on – we were expecting ~2cps. This is a FY23 story given the acquisition and integration of Lend Lease Services division in the period which dramatically increased the size of the business, and to that end they said guidance would be provided at their AGM in October – that’s also a disappointment as it infers they don’t have a great line of sight on the business. Overall, a weak update that we were disappointed in and we are again reconsidering our position in SSM.
MM was disappointed with the SSM result
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