If you were the multinational customer, you would be taking your time to screw SML for a superb deal.
It will happen imo but not just yet.
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True. If they just would get rid of all these loss making stainless steel facilities, sell their loss making property and their huge truckfleet (maybe Fonterra would be interested?), than it might be possible to turn them into a quite successful hedgefund.
I guess shareholders invested at IPO time something like $350m (from memory), so $42m pa would not be a too bad return ... not sure, though whether this is sustainable.
Management of shareholder capital is a different subject, though.
They turned so far ~$350m IPO in 2013 (IPO) plus a $200m CR in 2020 into a total of $282m (market cap today) and never a dividend paid.
I guess - sure, could have been worse (they could have lost all) - but still. Lets hope their next decade is better.
Not sure though, I understand the 5 year plan they present. I see lots of pink and lots of small logos, I see taht there is a lot of stuff they must do anyway and some of their starting conditions but where exactly is the plan to prosperity? Anybody spotted it? For sure, they must have come further in 10 years?
But, to finish on a high note ... looks like they have a really diversified leadership team. What could possibly go wrong?
interesting a capital raise is in the mix now if the assets dont sell that are for sale
Having Abbott on board (the contract must be significant for Synlait to have invested what they have already) is going to provide a material lift to Synlait profits, with positive impact already commenced. Abbott have chosen Synlait as a supplier very wisely, and this business relationship is going to meet the expectations of both businesses very well.