We have a more positive view of the Australian sharemarket after attending the RBS Morgans conference in Queensland this week.
Around 15 small cap companies presented at the conference with most of their chief executives expressing confidence in the future and identifying plenty of growth opportunities.
Corporate Travel Management was one of the stand out companies. Chief Executive, Jamie Pherous, who had the unfortunate experience of being the day’s last speaker, did not have to struggle to keep the room engaged. He re-iterated that the company achieved a 45% increase in transaction revenue in the September quarter and released guidance of around 15-20% in EBITDA (earnings before interest, tax, depreciation and amortization) growth for the full June 2013 year.
Corporate Travel Management has recently expanded into the US market, which has allowed it to provide a global offering to it’s existing clients.
Other stand out companies were Ardent Leisure, Super Retail Group and Silver Chef. These companies have all diversified their business model to adapt to changing market conditions, and this was reflected in their great results for the June 2012 year.
The ability to adjust to changing market conditions was a common theme mentioned by CEO’s at the Brisbane conference.
Businesses that are constantly changing and innovating, in order to improve their offering to consumers, will generally perform better than those that don’t innovate. Companies that adapt to changing environments and position themselves well for growth, as Corporate Travel Management, Ardent Leisure, Super Retail Group and Silver Chef have, should have every reason to be positive about the future.
Disclosure of interest: Milford Asset Management holds shares in all four companies mentioned in this blog