RediShred Capital Corp V.KUT

A boring but profitable company

[Torontojay]

Who doesn't love the shredding paper business? Nobody wants to do it but it's a service that is still very much in demand. Let's take a closer look at this company. 

 

• The Company generated record revenue of $17.0 million CAD, growing $4.5 million CAD, or 36% versus Q1 2022.
• Consolidated EBITDA for Q1 2023 was a record $4.7 million CAD, growing $0.7 million CAD, or 17% versus Q1 2022.
• The growth in consolidated EBITDA was driven by organic growth from increased bookings for existing and new customers, growth from acquisitions completed in the past twelve months; and price increases.
• Free Cash Flow for Q1 2023 was $2.4m CAD ,growing $0.8 million CAD, or 48% versus Q1 2022, driven by higher cash generated from operating activities from higher EBITDA and more favourable changes in non-cash operating working capital, partially offset by higher capital expenditures to support the Company's growth.

Here is what's ignored from the report. Most companies hide their true organic growth by making acquisitions after another when the core business may be deteriorating. Redishred has proven over many years that their business plan of acquiring and growing organically is like clockwork. A simple yet boring rinse and repeat strategy that should pay off handsomely in the future. I really like the direction this company is going and I think it's a hidden gem in the making.