SSH (ASX:SSH) rockets 18% on earnings, margins
November 20, 2023SSH Group’s share price soared 18% by mid-afternoon on its revelation it had grown its EBITDA an impressive 169% to $4.7 million while running a healthy 40% gross margin.
The Western Australian industrial service business investor’s $3 million EBITDA improvement for the second year of its life on the Australian Securities Exchange ؘ– November 2022 to October 2023 – was a 169% improvement on year one.
Its unaudited earnings before interest, tax, depreciation and amortisation of $553,253 was a 72% increase on October 2022.
The West Perth and Kewdale-based group achieved a 40% gross margin for the four months to the end of October 2023.
SSH Group Managing Director Daniel Cowley-Cooper praised the growth-focused team’s outstanding results.
“I acknowledge the exceptional results achieved by our team and their contribution to our success to date,” Cowley-Cooper said.
“The collective effort and dedication to operational excellence and strategic initiatives two years post-listing has yielded significant successes and reinforces our belief in our service offering to our valued clients.”
The company is executing a revenue-gaining strategy by pivoting towards sectors with higher margins.
It builds and buys quality businesses in growth markets that it believes can be scaled and deliver high returns on investment.
Customer demand has seen SSH’s Tru Fleet business rental fleet asset uptake reach 85%, exceeding an 80% utilisation target.
SSH has also had contract wins in its Bridge Resources division, and improved asset utilisation and strong customer demand for equipment hire and fleet rental services in both its KMH and Tru Fleet businesses.
The group views its subsidiary Tru Fleet’s rental fleet as optimal in size and has banked $280,000 in startup funds that it had extended to the business.
The group is also looking at new opportunities that complement its current priorities and will keep the market abreast of its mission.
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