The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
Signs are emerging that employment ads and employment demands are on the up, which is only going to lead to volume and revenue increases in FY15.
There are three reasons I remain bullish on SEK.
Firstly, because of offshore exposure. SEK’s operations in southeast Asia, China and Latin America are set to deliver double-digit growth in FY15. The company’s purchase of Jobstreet will become accretive and begin adding value this year. This will also lead to further deleveraging of the balance sheet on the growth in these regions.
Secondly, due to SEK’s investment drive and organic growth profile, along with its acquisitions. The company is moving into education, a service with excellent exportability. The domestic pick-ups in services have been highly promising, and SEK is posed to roll these out to other markets.
Lastly, the stronger balance sheet will lead to stronger shareholder returns. With the current pullback impacting all sectors and stocks, this return is only going to increase on a percentage basis.