Hi Richard,
WOR are experiencing the same staff shortages as many industries across Australia, we believe wages growth is inevitable into 2022 which will be a major contributing factor to our reflation outlook over the coming year (s). It’s actually one of the key themes that was obvious in company meetings during results – wages are going up, particularly in WA due to their hard border closures.
Engineering services business WOR has endured a really tough decade post GFC but it currently looks good from a risk / reward perspective, but note it’s an aggressive investment in our opinion – obviously the 4.75% unfranked yield is attractive in a today low rate environment.