- Saunders International seems well-positioned for growth with a record orderbook, in excess of $ 107 million, and strengthening pipeline of new opportunities.
- SND expects earnings to improve with further implementation of strategic initiatives and delivery of recent project wins.
- Saunders has reported $ 77 million in project wins in FY20-H2
- Revenue guidance for FY20 is circa $ 66 million - $ 70 million with EBIT margin forecast between 1.8% and 2.3%
Innovation, excellence, and growth seem to be the efficient tripod stand on which ASX-listed Saunders International Limited (ASX:SND) has been successfully operating for decades.
Owing to its considerable knowledge and experience of over 69 years, Saunders has been one of the most active contributors to the development of Australian industries. The Company provides a series of solutions that are innovative, cost-effective, and reliable, along with trouble-free project delivery. The Company caters to a diverse client base, which has expanded to include water utilities and mining sector players.
Besides its services and offerings, the Company’s stock has often been a hot stock on the exchange and garnered ample media and investor attention. SND last traded at $ 0.430 on 19 June 2020. In the past six months, the stock has delivered returns of 38.71%.
Let us acquaint with the Company’s vision, values, and capabilities.
The Company is driven by a commitment to safety, innovation, excellence, and growth. Parallelly, SND envisions and ensures delivery of engineered solutions (high-quality) across the complete asset life cycle.
Its sustained growth has enabled Saunders to emerge as a reputable, multi-disciplinary company, practicing its vision across Australia and around the Pacific Rim via its PNG entity.
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The Company has five core values of safety, integrity, innovation, teamwork, and leadership, respectively. These are further aligned to employee behaviours. Let us understand how-
Safety- One team, one goal, zero harm
Safety is the first culture imbedded in everything Saunders does, including behaviour at work and home.
Integrity- In all decisions
SND deems itself accountable for all its actions, results, successes, and failures. Honesty and reliability are vital values while the focus remains on delivering commitments.
Innovation- Application of information, imagination & innovation
Core business focus since inception (Est. 1951) has been to provide clients with innovative and cost-effective solutions for their individual project specifications, and the Company continues to challenge itself to improve while remaining open to collaboration with others to bring ideas to life. SND also thrives to create solutions that meet customers’ needs and exceed their expectations.
Teamwork- Passionate people working together to deliver excellence
Chairman Timothy Burnett has often stated that the Company’s people have been the driving force behind SND, and that the future success of Saunders will be through building on the strengths of its people and capabilities. Moreover, with recent material changes to SND’s operating model, the board and management team are focused on ensuring people and culture remains a high priority.
SND’s 220+ strong permanent work force continues to deliver quality products for customers while inspiring each other to reach their full potential, collaborating with each other and customers in finding solutions. The Company also recognises and rewards high performance.
Leadership- Passionate people working together to deliver excellence
Leaders at SND show personal drive as they engage with and motivate others, even to speak up and challenge the status quo. Moreover, delivering clear, candid and timely feedback is also a core value of the Company.
Vision and values of the Company reflect in its capabilities of offering construction, maintenance and civil engineering services to sectors including infrastructure, energy and resources. SND uses in-house expertise to work on varied projects covering services such as design, construction, manufacture, installation and maintenance services.
In its Annual General Meeting last year in November, SND notified that its new 2025 strategy includes clear initiatives to continue the diversification and growth of the business, with a focus on higher margin projects driven by its technical engineering capabilities. Ever since, the Company has been bagging major contracts in diverse spheres- Sydney Water and Rio Tinto to name a couple of its clients. Other contracts have been inked in the areas of defence and terminal expansions.
Amid the current COVID-19 environment, SND continues to remain focused on cash preservation via reduced capital and discretionary operating expenditure. The Company is also focused on the health and wellbeing of its employees, customers, and their families during these unprecedented times.
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