Riding the wave of success: How temporary accommodation became a target for investors
The company we will focus on has become a major player in the temporary accommodation and support services market, particularly in the mining and energy sectors. Its growth has been driven primarily by the Australian segment, which has seen significant revenue growth due to higher occupancy and rising accommodation prices. For the second quarter of 2024, it reported revenue of over $108 million, up 32% year-on-year. With a plan to reach AUD500 million in revenue by 2027, the company is in a strong position and its Australian operations suggest further growth potential.
In addition, the firm is attracting investor attention with its dividend policy and its recent announcement to buy back up to 5% of its shares. This combination of growth and shareholder returns makes it an attractive investment opportunity, which has been reflected in the share price rising by over 20% in the last three months. With an ROE of 11%, comparable to the industry average, and 64% growth in net profit over the…