Supply Network HY13 numbers (SNL)

I’ll be honest, when I originally posted about SNL back in 2011, I thought I’d found a cheap company with a stable business that wasn’t set to grow much faster than the economy.  Back then, it was a $19m market cap minnow, selling for 9.2 times earnings.  Since then market cap has more than tripled, to $53m, and earnings have kept a reasonable pace, with a P/E multiple of 13.39.  Over the past 2 months alone it has rocketed from the $1.20 range up to $1.60!

 

So today management released preliminary HY13 figures.  NPAT of $2.08m represents an increase of around 17% against PCP, with a half year dividend of 3.5c.  I’ve already sold down half my holdings, and my 1 year capital gains discount applies at the end of February.  I’m still sitting on a 75% profit on my most recently bought parcel, so if share prices are still at current levels in a month’s time I will take profits.  Much of SNL’s growth has been from Central Queensland mining, and if commodity prices fall it could lead to reduced sales.