Smartgroup renews major defence contract
Smartgroup (ASX: SIQ) salary packaging and novated lease firm announced on Wednesday it had renewed its contract with the Department of Defence, with shares rallying 18% in response. We believe the contract represents approximately 23% of the company’s revenue and more in earnings. The new contract covers a six-year period and will provide a real platform for future growth. This positive announcement accompanies the recent earnings upgrade and is a significant catalyst for our team to continue to hold SIQ shares in the investment portfolio.
Wilson Asset Management has a track record of making a difference for shareholders and the community for more than 20 years. As the investment manager for eight leading LICs – WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB),...