SGH CEO Ryan Stokes on company results, housing, energy and gambling ad restrictions | The Business
The SGH share price plunged nearly 10 percent after the company formerly known as Seven Group Holdings posted its FY26 results to the ASX. The diversified industrial conglomerate’s results to the end of June show underlying net profit after tax of $920 million, down 0.4 per cent. Shareholders will receive a final franked dividend of 32 cents per share.
SGH owns a number of businesses including Boral, Westrac, and Coates, and is a major stakeholder in Beach Energy and Southern Cross Media (the latter company recently merged with Seven West Media).
SGH chief executive officer Ryan Stokes told ABC’s The Business the reaction from investors “overplayed” the FY26 result and FY outlook. “Our businesses are in a good position. We know over time that will sort itself out and value will be realised. So we’re more comfortable with how that will play through over the next two weeks, month(s),” he says.
On the state of the economy, Mr Stokes describes it as “relatively robust” and beieves it has likely passed the worst of the energy shock. He says: “I think usually the supply channels find different pathways to equalise. I think the government’s response to procure fuel has added a degree of confidence that the supply would be met and I think that has helped. We need to continue to look to how Australia’s fuel supply will be looked after but from a user perspective. We don’t have any near-term concerns.”
But Mr Stokes says the government’s gas reservation scheme will see small domestic energy producers priced out of the marketplace if there are not changes to the legislation. He says “if LNG producers are forced to sell (an) effective quantum of gas that the otherwise domestic gas sector does produce, there isn’t really a place or role for domestic gas producers”. “So we think the right outcome is how do we ensure supply for manufacturers to ensure we have a strong economy, but ensuring that that domestic gas sector is seen as part of a future made in Australia, not as a consequence.”
On the housing construction pipeline, Ryan Stokes says construction should continue to hold up despite interest rate hikes and the Federal Government’s tax changes. “I think the fundamentals around the requirement for supply are probably a more pressing aspect. So you see this population growth requiring that supply to be built. So we still see that playing through, which should support continuation in housing construction and more residential construction coming through. But overall, we’ve seen the activity level in the economy being relatively robust.”
In this extended interview, Mr Stokes touches on future merger and acquisition opportunities following failed takeover attempts of ASX-listed steelmaker Bluescope, whether the recent merger between Southern Cross Media and Seven West Media means his family business is taking a step back from the media industry. He also addresses what proposed gambling advertising restrictions could mean for broadcasters already dealing with structural transformation. He says it is a fact they’ll have to manage. “I think we want a sensible outcome. But we want an outcome that doesn’t mean you have a restriction on broadcast, but in a social media context, you’re flooded with ads. So this dynamic that you can close it off on one and not on every attribute is the right answer.”
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