Two quality names playing catch up

Two quality names playing catch up. As you were. That is the take away message David Allingham from Eley Griffiths Group has taken away from meetings with the CEOs of Australian listed companies during corporate reporting. Whilst revenue growth remains elusive there was some good news. Thankfully we are finally seeing the delivery of significant cost-outs and that has been a corporate strategy for two years in Australia... The issue moving forward is that we will need that revenue growth to chime in. Everyone is aware of this and the costs can only go so far. The aspect companies can't control is the revenue environment, which remains subdued. As a result those companies with revenue growth have been materially re-rated. However, Allingham says there are a number of very high quality small caps that he believes have been left behind presenting an opportunity for investors. He shares two examples: