Post the most recent February 2024 reporting season the team have undertaken the following changes for the SMID Portfolio.
ADDITIONS/INCREASES
Following solid results and a positive outlook for several of our companies through reporting season we have strengthened our conviction and decided to increase our position in the following businesses:
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ALS Ltd (ALQ) – exposure to mineral exploration and expansion
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Monadelphous (MND) – maintenance of processing plants and new construction
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Perenti (PRN) – drill and blast for underground copper and gold mines
These companies are all within the mining services sector where we are substantially overweight. Activity levels remain very strong in the end markets for most minerals, and we are attracted to the longer-term dynamics of such commodities as countries like Chine and India continue to industrialise their economies.
EXITS/REDUCTIONS
Following very strong results from Beacon Lighting (BLX) and Seven Group (SVW) and the resultant share price performance we have decided to lock in some profits for these two holdings.
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SVW after this reduction will remain our biggest position and we continue to be very attracted to the earnings profile of this group and the continued upside from both its Westrac and Boral operations.
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BLX has been trading much better than expected through a difficult period by firstly pushing up its gross margins and secondly through strong progress from its new trade initiatives. So timely to now be taking some profits.
Please do not hesitate to reach out if you have any questions or queries.
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