SRG’s 1H20 underlying EBITDA of $12.1m was weak by historical standards, but largely expected given a very soft period in Construction in WA and VIC. Perhaps unappreciated is that during this time management has very successfully ramped up exposure to Asset Services. With this providing an increased baseload of recurring revenue, we continue to believe the swing in performance when Construction delivers more in line with historic norms could be significant. We maintain a BUY call on an unchanged $0.50 valuation.
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