Following a 20% upgrade to profit guidance for the 2016 financial year, Aristocrat Leisure (ASX:ALL) added significant value to the Ralton Australian Shares portfolio. The profit uplift was driven by a number of factors including market share gains in Australia and North America, continued growth in participation gaming machine installations (annuity-style income) and further stellar growth for the Digital division (from a low base). This growth reflects the continued investment in product by ALL through it studio strategy. Looking forward, we believe ALL’s operating momentum should continue while its main peers remain distracted by their own large-scale acquisitions. With a strong balance sheet and free cash flow, ALL has the option of increasing distributions or making another acquisition. We are comfortable with ALL pursuing acquisitions given its success integrating VGT and Product Madness. (VIEW LINK)
Andrew has been with Ralton since its inception in 2006 and leads the investment management of Ralton’s managed accounts. He brings over 25 years of funds management and investment banking experience having held senior positions with major...
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