SIO

About SIO

Simonds Group Limited (SIO) is into design, sales and construction of residential dwelling. Simonds Homes is Australia's volume homebuilders, with display homes located across the Australian eastern seaboard and South Australia. Simonds Homes product range includes single and double storey detached homes, with a target market being first and second home families in the metropolitan areas and large regional cities.

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What does Simonds Group (SIO) do and how does it make money?

If you build it, they will come… To do it for you. Founded in 1949 and based in Melbourne, Simonds Group is a provider of homebuilding and registered training services in Australia. The company is one of Australia’s largest volume home builders, operating display homes across the Australian eastern seaboard and South Australia. Simonds Group operates and earns revenue through three business segments. These include Residential Construction, Registered Training, and Development.

Within Residential Construction, the company engages in contracts to design and build residential homes, speculative homes and display homes.

Through the Registered Training segment, it provides registered training courses, payroll and asset services, and intellectual property services through its subsidiaries House of Learning (trading as Builders Academy Australia) and City-Wide Building and Training Services (also known as CWBTS).

Within the Development segment, the company develops and sells land for residential use. At this time, Simonds Group is the only national volume home builder with its own registered training organisation, Builders Academy Australia.

Is Simonds Group a profitable company?

Yes, Simonds Group is currently profitable but the company’s history of net income has been inconsistent. The company’s net income only arrived at A$205k in FY2017 but made a huge 1741% leap to A$3.77m by end of FY2018. Net income shot up again in FY2019 by 173% to A$10.31m only to drop by 46.65% to A$5.5m in FY2020. The company’s net profits then dropped another 14.66% to A$4.7m by end of FY2021.

For the first half of FY2022, Simonds Group reported a net profit of A$0.5m.

Is SIO stock a buy?

Simonds Group has been hurt by skyrocketing material costs and shortages, labour shortages, supply chain complexities, escalating COVID-19 infections and health mandates limiting on-site activity. Geopolitical uncertainties have not helped the stock either.

In February 2022 the company stated:

“COVID-19 is expected to continue to impact the group in the second half of FY22 as infection rates increase and staff and trades/suppliers are required to isolate for a period of time. Whilst further lockdowns are not expected to the extent of FY21 and 1H22, it is still possible there could be some restrictions on access to sites, our display centres and other potential impacts across the supply chain should they occur.”

Investors are likely to remain bearish until the pandemic, inflationary and geopolitical impacts abate.

How do I buy SIO stock?

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Does SIO stock pay dividends?

No, not at this time. Throughout its history, Simonds Group has only paid a dividend once in September 2015.

In the company’s most recent annual report, Simonds Group stated: 

“Future dividends will be subject to the directors’ assessment of the company’s financial position at the appropriate time.”

Find out more in our guide 'What is a dividend?'.

Who owns SIO stock?

Simonds Group Founder Gary Simonds owns the majority of SIO stock, holding 43.8%.

Other businesses holding SIO stock include Mcdonald Jones Homes Investments (16.44%), FJP Pty Ltd (13.84%), Asahi Kasei Corporation (10.04%), MOAT Investments (1.42%) and Madisson Homes (Trust 1.07%).

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