Why did Smartgroup (SIQ) shares rally today?
SIQ +7.44%: the salary packaging & novated leasing company has got one over a rival today, picking up the South Australian Government contract off the incumbent McMillian Shakespeare (MMS). The contract will be handed over on 1 July next year, servicing the state government’s 110k employees where McMillian has 43k active services as disclosed in an announcement by the company today. The initial 5-year contract is expected to add ~$6.5m to EBITDA ~6% of current 2024 consensus expectations for Smartgroup. The announcement also came with a trading update for 2023 where the company expects revenue of ~$249m and Net Profit of ~$63m, a small beat to the $61.5m previously expected on the back of strong novated leasing volumes.
