LandMark completes revenue-boosting acquisition
Independent property valuation and consultancy firm, LandMark White (ASX:LMW), has completed its acquisition of Taylor Byrne Holdings, further cementing LMW’s position as the largest ASX-listed valuation services business and expanding the company’s regional footprint throughout the eastern seaboard of Australia.
Taylor Byrne is a leading regional property valuation firm with 26 offices across Queensland and New South Wales.
Not only will the acquisition boost revenues by an estimated 50% — it is also set to provide earnings diversification and improved margins.
Over the coming months, LMW will work closely with Taylor Byrne and the newly formed transaction committee to integrate operations and build upon the duo’s combined capacities.
Undervalued at current levels
Management estimates that annualised revenues and EBITDA will increase by $22.7 million and $2.3 million, respectively.
Given that Taylor Byrne is a high margin business, there should be a significant bottom line impact, and management intends to provide revised 2019 earnings guidance in the coming weeks — a potentially market moving development.
With its 2018 dividend of 4.6 cents implying a yield of 8.3%, LMW is trading on a trailing PE multiple of 10.3, below the sector average of 15, suggesting it may be undervalued.
Consequently, any acquisition related earnings boost, combined with organic growth within its established businesses, should reflect attractive forward investment fundamentals.
This information is general financial product advice only and you should consider seeking professional advice before making any investment decision. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.