Yesterday evening network services company Service Steam Limited (ASX: SSM) posted its financial results for the full tear ending June 30, 2017. Below is a summary of the result with comparisons to the prior corresponding period.
- Revenue of $508.1 million
- Full year EBITDA of $48.4 million
- EBITDA margin of 9.6%
- Earnings per share of 7.78 cents, up 53%
- Net profit of $28.4 million, up 42%
- Final fully franked dividend of 3 cents per share, total dividends of 4.5 cents per share
- Group focused on a full year of revenue and profit growth in FY 18
Service Stream is engaged in the provision of the infrastructure required for fixed-line and mobile telecommunications and as is a beneficiary of the giant NBN project alongside other new digital infrastructure projects.
The stock has tripled in value over the past five years and management believes its three operating divisions of fixed communications, network construction, and energy & water all have growth opportunities ahead, after all posting decent year-on-year growth.
At $1.40 the stock sells for 18x trailing earnings with a 3.2% dividend yield.
