There’s been more positive news for Australian homebuilder, land developer, and registered training organisation Simonds Group Limited [ASX:SIO] this month.
In fact, earlier this morning we saw a massive growth in their share price of 21.02%.
Definitely a sure sign of strong marginal growth and healthy profits, which was the latest strategy of the company’s new board.
Add this to the stabilised industry growth across all operational fronts, and we are looking at a very promising company for 2018.
But exactly how are they doing so well?
How trading potential helped its share value grow
In 2017, Simonds kickstarted 2,391 new home sites.
They added another 2,500 this year.
This determination is showing investors that larger companies — such as Mirvac — are not the only ones taking advantage of the construction boom. Simonds is having a fair crack as well.
And it’s these developments which are pushing this strong marginal growth and profitability.
The company is happy with this progress.
Their earnings before tax are expected to align with their predictions.
The board has also utilised new business rules and cost controls which is helping Simonds achieve its business potential.
Board members have high hopes for its new managing director and CEO, Kelvin Ryan who became a part of the company back in March.
On its ASX announcement Chair of the board, Ian Kirkwood stated:
‘Kelvin Ryan possess extensive experience in volume home building and has a strong track record in the industry, the board holds high regard for his experience and skills as evidenced in his first “10” days he is leading the drive to cement Simonds strong brand in the volume home building business.’
Thanks to these new business innovations and fundamental changes in its company structure, Simonds has dramatically improved its debt position in just two years.
Long term financial results can now be delivered at a more sufficient basis, while the company focuses on growing key business zones.
Product range also has the potential to increase, for Simonds now has the means to develop new products and transmute them into the market.
All is looking good for this Aussie company.
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