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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.