Spotless Group (SPO): Strong outlook drivers
Spotless Group (SPO) continues to be one of our top stock picks. SPO’s balance sheet is sound, net debt to shareholder funds is 69.5% and EBITA is 8.0x. We anticipate SPO will have a strong FY16 result due to three key drivers: 1. They are the leading operator of social infrastructure public private infrastructure partnerships in Australia and New Zealand; 2. They have an impressive pipeline of tender opportunities in the outsourced facilities market; 3. There is a continuing number of acquisition opportunities. Share price is currently $2.08 (as at 29/09/2015) and the forecast fully ranked dividend yield for FY16 is an attractive 5.1%. Our Head of Research Peter Quinton provides a video summary. &feature=youtu.be
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