News & Media

Acquisitions underpin strong near term growth opportunities not reflected in share price.

• SGI provides direct exposure to the growing industrial consumables market,
  driven by favourable conditions across key industries, expanding
  industrialisation and improving workplace safety regulations. Around 95% of
  revenue is attributable to non-discretionary items.
• Over the near term, SGI will benefit from increasing contributions from
  several recent acquisitions, including C&L Tool Centre (Dec 2020), Skipper
  Transport Parts (Aug 2021), and United Tools (Mar 2022), which in
  aggregate add $40m annual revenue.
• The company also expects to progressively extract significant synergies from
  these acquisitions, including $34m+ incremental revenue and at least $0.5m
  in costs. We expect the resulting material increase in the scale of the
  business will enable it to deliver significant additional benefits in time through
  greater purchasing power and other economies of scale.