Skydive the Beach - Selling Excitement (and Narcissism)

Dean Fergie

If my social media feed is anything to go by, there is a growing propensity for individuals to now do 'exciting things' because they can tell the world about it online. Skydive the Beach (SKB) has just made its second significant acquisition in NZ by purchasing Skydive Wanaka for $10m. This further consolidates and expands SKB’s leading footprint in the Aust/NZ skydiving adventure tourism sector. The company now controls 18 drop-zones and is expected to complete more than 160,000 tandem jumps in FY17. At more than $400 a throw, the company is generating some serious revenue. Thanks to the social 'sharing' generation, organic growth in SKB's business has been running at 7% with acquisitions bolstering top line line growth to more than 70% in the past two financial years. Make no mistake, SKB is a 'real' business with growing revenues, profits AND a regular dividend. Plus the balance sheet is in great shape, net debt is just $5m versus a market cap now in excess of $150m. Read our previous notes on SKB in past Cyan reports here.

Dean Fergie

Dean has over 25 years experience in the funds management industry covering all major asset classes. He holds as Master of Applied Finance and is a Graduate of the Australian Institute of Company Directors.



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