Domestic investors may have underestimated Spotless

Domestic investors may have underestimated Spotless. In recent months the fund has established a holding in Spotless, Australia's largest provider of mostly essential integrated facility services. The company benefits from high visibility over future revenue streams, with greater than 75% of revenue contracted for 3 or more years, embedded price escalation clauses, an extremely high contract retention rate, and a diverse customer base which includes local, state and federal governments, and multinational corporations. We believe domestic investors have underestimated the sustainability of the restructured cost base, a view re- enforced by the most recent set of results, and several meetings with management have given us confidence that contracts and costs continue to be managed tightly to continue to enhance profitability. At our entry points the stock is positioned to deliver us >5% dividend yield and generates an after tax cash earnings yield of almost 9%. Read the latest fund report here: (VIEW LINK)