SIT’s full year results broadly confirm the picture seen when the preliminary sales figures were announced but there has been a slight improvement with outturn sales growth of 3.4% against the 3.3% signalled in January. Both sales and EBITDA modestly beat our forecasts and the heating and water metering business continues to show growth across the year. The fourth quarter saw a rebound in gas metering and we expect this to continue in FY 23. Heating may slow however given the impact of higher interest rates in US on home expenditure. Manufacturing cost gains will come but not until FY 24. Against this the company is cutting its dividend in order to preserve cash and cut debt to enable it to pursue growth opportunities.
