SRG Global's Stellar 295% Return: A Strategic Transformation

SRG Global (ASX:SRG) investors have witnessed an impressive 295% return over the last five years, a testament to the company's strategic transformation towards annuity/recurring earnings. This shift has not only enhanced the company's earnings profile but also positioned it for sustainable growth and dividend returns.

SRG Global's strategic transformation has been instrumental in driving its revenue growth and stability. The company has focused on growing its Maintenance and Industrial Services segment, which now generates over two-thirds of its earnings from recurring maintenance work. This strategic move has contributed to the company's strong revenue growth of 26% to $809 million in the full year 2023, with net profit after tax increasing by 42% to $31.8 million.

The acquisition of ALS Industrial Pty Ltd (Asset Care) in February 2023 has further bolstered SRG Global's growth and shareholder value. The acquisition, valued at $80 million, implied a multiple of 5.2 times Asset Care's FY23 EBITDA. This strategic move has expanded SRG's service offerings and positioned the company for sustainable growth and returning capital to shareholders through its dividend strategy.

SRG Global's shift towards annuity/recurring earnings has been further solidified by securing a 10-year term maintenance contract with Transpower New Zealand Limited worth approximately NZ$130m. This contract, commencing on July 1, 2024, for an initial five years with a further five-year right of renewal, underscores SRG's industry-leading position in New Zealand's maintenance services sector.

SRG Global's impressive performance can be attributed to its strategic acquisitions, such as ALS Industrial, and its focus on growing recurring asset maintenance services. The company's commitment to sustainable growth and returning capital to shareholders through its dividend strategy has positioned it as a strong performer in the market.


SRG Global's strategic transformation towards annuity/recurring earnings has been a key driver of its impressive 295% return over the last five years. This shift has enhanced the company's earnings profile and positioned it for sustainable growth and dividend returns.

SRG Global's focus on growing its Maintenance and Industrial Services segment has contributed to its strong revenue growth and stability. The company's revenue has increased by 26% to $809 million in the full year 2023, with net profit after tax increasing by 42% to $31.8 million.