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SLK, SEALINK TRAVEL GROUP
nipper
post Posted: Oct 16 2019, 08:29 PM
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In Reply To: blacksheep's post @ Oct 16 2019, 08:14 PM

I think this evolution is a natural development, to scale up and hopefully counter the TransDev and Keolis type organisations. Macquarie is doing similar, acquiring outer suburban and country bus routes. As to the wasteland that is rail = too hard basket

Mostly, the consolidations stem from state governments abdicating their responsibilities (too hard with entrenched unions to reform sensibly). Most public transport only recoups a fraction of the cost, on a passenger per Km basis; the least worst outcome is to try and control the hemorrhaging.




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Oct 16 2019, 08:14 PM
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In Reply To: blacksheep's post @ Oct 10 2019, 10:42 AM

Updated chart below

extract from - Sealink Travel Boards The Transit Systems Bus
QUOTE
The acquisition of Transit Systems Group is expected to transform Sealink Travel into a major operator of metropolitan bus services.

-Sealink Travel likely to be re-rated post acquisition
-Significant portion of revenue now subject to long-term contracts
-Sealink Travel now more an infrastructure management business


QUOTE
Risks

Notable risks, Ord Minnett suggests, include exposure to the variability in passenger numbers on several of the routes the company services. Sealink Travel is also a sole operator on a number of key routes and there is a risk that competition emerges.

A significant portion of revenue will be subject to long-term contracts and there is a risk that one or a number of these could be lost, which may have an adverse impact on earnings.

Ord Minnett notes around one third of the Transit Systems contracts are due for renewal in the next 12 months, and the company has already been informed it will likely lose the London contract, although brokers expect this is unlikely to be material to earnings. The company asserts it can more than compensate for the loss of the London contract by winning a new route to service the Joondalup region in Western Australia.


Broker ratings/targets - FWIW

Ord Minnett BUY $5.85
Taylor Collison OUTPERFORM $4.50
Baillie BUY $5.20

Read more - https://www.fnarena.com/index.php/2019/10/1...it-systems-bus/



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 10 2019, 10:42 AM
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In Reply To: blacksheep's post @ Oct 9 2019, 12:15 PM

10 October 2019

QUOTE
UPDATE SEALINK INVESTOR PRESENTATION – TRANSIT SYSTEMS WA CONTRACTS
SeaLink Travel Group Limited (ASX:SLK) (SeaLink) notes that the Transit Systems Group currently
holds contracts to operate the Claremont (Perth, WA) and Marmion (Perth, WA) bus services. Those
contracts are due to expire in January 2020 and the Transit Systems Group has been in negotiations
with the Western Australian Government and associated transport authorities as preferred tenderer for
those contract areas.

SeaLink has today been advised that the Transit Systems Group has been successfully awarded
binding contracts to continue to operate the Claremont (Perth, WA) and Marmion (Perth, WA) bus
services for 10 years commencing in January 2020 and expiring in January 2030.

Further SeaLink has today been advised that the Transit Systems Group was awarded a binding
contract to operate a new contract for Joondalup (Perth, WA) bus services for 10 years commencing in
January 2020 and expiring in January 2030




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 9 2019, 12:15 PM
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In Reply To: blacksheep's post @ Oct 8 2019, 10:28 AM

SP up 18.16% - currently $4.62/share - could be retail investors getting onto the register to qualify for entitlement offer. Massive gap created

SEALINK SUCCESSFULLY COMPLETES THE INSTITUTIONAL ENTITLEMENT OFFER AND PLACEMENT
QUOTE
SeaLink Travel Group Limited (ASX:SLK) (SeaLink) is pleased to announce the successful completion of the fully
underwritten institutional placement and the institutional component of the 1 for 4 pro rata accelerated nonrenounceable entitlement offer (Entitlement Offer) of new fully paid SeaLink ordinary shares (New Shares) at an
offer price of A$3.50 per New Share.

KEY HIGHLIGHTS
• The institutional placement (Placement) will, on settlement, raise gross proceeds of approximately A$65 million
• The institutional component of the Entitlement Offer (Institutional Entitlement Offer) will, on settlement,raise gross proceeds of approximately $43 million
• Strong support shown by both existing and new institutional shareholders
Retail component of the Entitlement Offer (Retail Entitlement Offer), which is expected to raise approximately A$46 million, opens on Tuesday, 15 October 2019

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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
blacksheep
post Posted: Oct 8 2019, 10:28 AM
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In Reply To: nipper's post @ Oct 8 2019, 09:53 AM

My thoughts exactly - reverse T/O for Transit Systems Group - an easy way onto the ASX. Remember also they divested their marine business to SLK back in 2015. More like coming back home biggrin.gif

QUOTE
“The Board of Directors of SeaLink believe that Clint is uniquely positioned to lead the combined SeaLink and
Transit Systems Group business. Clint has worked with Transit Systems Group for 10 years and throughout this
time has acquired significant experience in managing a large passenger transport business delivering reliable and
safe services to large-scale government contracts. Clint also has an extensive background in marine transport
operations having built Transit Systems Group’s marine operations into Australia’s largest private operator of
passenger and vehicle ferries before divesting the business to SeaLink in 2015
.




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Oct 8 2019, 09:53 AM
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In Reply To: blacksheep's post @ Oct 8 2019, 09:42 AM

they probably will change name. SLK market cap of $400mill with Transit backing in with $635mill ! Reverse TO

Also new CEO will be from Transit. ... I would assume considerable degree of complexity in running Transit (despite long running Govt contracts)

other synergy I see .... Sydney Harbour tourism -> the SLK fleet and shuffling passengers around



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

sentifi.com

Share Cafe Sentifi Top themes and market attention on:


blacksheep
post Posted: Oct 8 2019, 09:42 AM
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In Reply To: nipper's post @ Oct 7 2019, 03:50 PM

Might have to have a name change? Transit Systems Group would be more appropriate

SEALINK ANNOUNCES STRATEGIC ACQUISITION OF TRANSIT SYSTEMS GROUP AND LAUNCHES CAPITAL RAISING
QUOTE
 SeaLink to acquire 100% of Transit Systems Group for an enterprise value of A$635 million plus an earnout component of up to A$63 million
 Strategically compelling acquisition creating a leading Australian multi-modal transport provider, with
established international operations in Singapore and United Kingdom
 Transit Systems Group is a highly scalable operating platform, with a strong track record of contract wins
and renewals and an experienced management team operating typically long-term, low-risk, CPI indexed
government service contracts
 Proposed transaction expected to be over 20% EPS accretive to SeaLink shareholders,1 pre-synergies and
before transaction and implementation costs
 Attractive acquisition multiple of 8.2x EV / FY19A pro forma normalised EBITDA pre-synergies2 or 7.8x
including net synergies of ~A$4.0 – 4.6 million3
 Pro forma net debt / FY19A normalised EBITDA of 2.5x4 expected prior to completion adjustments, mediumterm net debt / LTM EBITDA target of <2.0x4
 Current Transit Systems Group CEO, Clint Feuerherdt, to replace Jeff Ellison as SeaLink CEO




--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Oct 7 2019, 03:50 PM
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Posts: 6,336
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QUOTE
ASX-listed cruises and ferries operator SeaLink Travel Group is set to unveil a company-changing acquisition to broaden its portfolio and will ask investors to help fund the deal.

It is understood SeaLink is set to acquire Transit Systems, which is a family-owned bus company. It is expected to acquire the whole business, while the vendor will take a signifcant stake in SeaLink.

SeaLink is expected to seek to raise $150 million in a placement via Macquarie Capital, Ord Minnett and Taylor Collison to help fund the acquisition. The transaction is expected to be worth more than $300 million.

It comes as SeaLink has flagged its intention to expand its passenger transport operations to "create a multi-modal provider of transport".

Transit Systems has operations across the country including a metropolitan bus networks in Sydney, Perth, Adelaide and Melbourne. Among its operations, Transit Systems operates about 70 per cent of the passenger bus services in Adelaide for local commuters, after most routes were privatised in 2000

capital hungry. And on the Gov drip



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Apr 25 2019, 05:49 PM
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QUOTE
Sealink now faces competition on its mainstay Kangaroo Island route after KI Connect started operating a high-speed catamaran in June last year. So far Sealink reports no effect on its own sales but losing a monopoly position tends to be unhelpful in terms of maintaining margins, to say the least.

Sealink has less to worry about with a $5 billion proposal, championed by Nick Xenophon’s SA Best, to link the island to the mainland with a 14 kilometre bridge. As the island’s mayor muses, the plan is viable if an extra three million visitors a year were willing to pay $100 each in tolls.
- One way to redefine "populism "



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Feb 19 2019, 07:30 PM
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In Reply To: blacksheep's post @ Feb 1 2019, 06:00 PM

Solid report but suggestion of "subdued trading conditions" probably contributed to today's SP decline - down1.73% @ $3.98
SEALINK TRAVEL GROUP ANNOUNCES INTERIM RESULT FOR HALF YEAR ENDED 31 DECEMBER 2018
QUOTE
Highlights
Financial
 Total income of $130.4m, up $31.7m or 32.1%
 Net Underlying Profit After Tax of $13.1m, up $1.7m or 15%
 Strong Net Operating Cashflow of $28.9m, up 63% from $17.7m in the first half of FY 2018.
 Underlying EBITDA up 8.0% to $25.7m compared to $23.8m in 1H FY 2018 primarily attributable to a
pleasing Fraser Island contribution, offset by weaker Captain Cook Cruises performance in NSW and
WA.
 Lower tax expense associated with benefit of marine training incentives.
 Net debt reduced by $12.5m or 11.8%.
 Basic EPS for 1H FY 2019 increased 14.3% to 12.8 cents per share from 11.2 cents per share in 1H
FY 2018.
 Interim dividend of 6.5 cents per share in line with 1H FY 2019, representing a 50.7% return of aftertax net profit to shareholders.
 Underlying net profit after tax for the second half of FY 2019 to be higher than the first half of FY 2019,
assuming average seasonal and current business conditions.
The Board has declared a fully franked interim dividend of 6.5 cents per share, payable on 2 April 2019, which
is in line with previous interim dividend.


QUOTE
Outlook
SeaLink’s strategy of creating a strong geographic diversified tourism and transport operator to iconic tourism
destinations, with solid commuter markets, continues to position it well for sustainable earnings and growth.
Despite more subdued trading conditions in the tourism sector, we anticipate that SeaLink’s 2H FY 19 NPAT will
be higher than that which was achieved in 1H FY 19, assuming average seasonal and current business
conditions remain over the remainder of FY 2019.

We are pleased with our disciplined cost management, which we anticipate will enable SeaLink to build profit
margin in a normal operating environment, and we are continuing to actively pursue value-accretive acquisition
opportunities that have a strong strategic fit with our transport and tourism focus.

https://www.shortman.com.au/stock?q=slk
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--------------------
The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
 


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