Source: Investor Presentation, Feb 2021
- Saunders International Limited (ASX:SND) has continued to perform well across business operations and financial frameworks.
- The Company is witnessing an increased level of new contract business enquiries across its sectors and service markets.
- In 2021, Saunders aims to secure revenue opportunities and seek complimentary acquisitions.
Amid the challenging environment that the world is currently operating in, engineering and construction company, Saunders International Limited (ASX:SND) has continued to progress the Growth phase of its strategic plan.
There has been an increase in the pipeline of opportunities in the core and emerging markets. The Company has been duly delivering on the growth strategies set three years ago while achieving better outcomes on its projects.
Key Clients, Source: Investor Presentation, Feb 2021
Chief Executive Officer Mark Benson suggests that there is “a strong platform for further growth in the second half of FY21”.
To read about Saunders’ H1 FY21 results, CLICK HERE: Saunders International’s (ASX:SND) solid H1 numbers paint a bright outlook for FY21
In this backdrop, let us skim through Saunders’ strategic priorities for 2021-
Strategic Priorities for 2021
FY20 was the period when Saunders completed the turnaround phase of its strategic plan. The new operating model and organisational structure propelled improved operational and financial performance across the business.
Upon completion of the FIX phase of its strategy, Saunders’ key focus for FY20 and FY21 is to execute the Growth phase.
Notably, the Company has the scale, technical expertise, and established relationships to certify that it capitalises on the recent market initiatives in the sectors that it operates in.
Significant programs supporting Saunders’ strategic priorities are-
- Boosting Australia’s Diesel Storage Program : $ 200 million in grants translating to $ 400+ million in construction.
- Federal Government Bridge replacement program (Round 5 $ 85 million).
- NSW Government’s “Fixing Country Bridges” program : $ 500 million.
- Capital Facilities and Infrastructure (CFI) program – circa $ 40 million currently under construction by Saunders.
- The DFTP Tranche 2 program – budget $ 500 million 2021-2026.
Saunders’ promising outlook
Saunders is seeing an increased level of new contract business enquiries across all its sectors and service markets.
As on 31 January 2021, the Company’s work in hand was $ 90.9 million. Tendering activity showed the value of live tenders at $ 421 million (including $ 105 million of preferred contractor status projects). The pipeline that is yet to be tendered stood at $ 393 million.
The Company’s revenue for FY21 is expected to be between $ 100 and $ 110 million with EBIT anticipated between 7 per cent and 8 per cent.
SND was trading at $ 0.690 on 12 March 2021 (AEDT 10:55 AM). The market capitalisation stood at $ 73.3 million.