Atturra is a provider of IT services provider- think of it as a mini TechnologyOne (ASX:TNE). ATA helps its clients ensure their IT systems are up to data and will get the job done. Since its late 2021 listing it has more than doubled its revenues and more than tripled its underlying profit, due to the demand for IT services but also through organic & M&A growth.

The company has guided to $292m revenue and $30m EBITDA for FY25, with the latter representing a >10% margin. It hopes to achieve this growth through its expertise in particular industries such as defence, utilities, education and government; as well as becoming a one-stop shop for its clients. It has >85% repeat business and low churn.

Australian Ethical is an ESG-oriented fund manager. Despite the talk of ESG being on the decline, this company has continued to see the growth in customers and funds under management, not just because of demand forESG investing, but also because it has delivered results. It grew its FUM from $1bn to $10bn between 2014 and 2024, off the back of 130,000 customers, and we think there's more to come.

A survey by the Responsible Investment Association Australasia (RIAA), released in March 2024, found 88% of Australian expect their superannuation and other investments to be invested ethically. 76% said they would be willing to switch providers if their current fund didn’t align with their values.

The company is capitalising on this trend. It is profitable (with $18.5m in FY24, up 57%), and it paid a dividend of 9c per share. It has made good returns for those who have stuck in long-term.

Universal Store is a chain of casual fashion stores aimed at Millennial and Gen Z customers (think 18-35 year olds). Universal Store has 79 stores across Australia, which tend to be in major shopping centres, as well as a further 20 or so stores exclusive for particular brands like Perfect Stranger, and the group makes 14% of its sales online. Both curated third-party products and private brand products are sold in-house, although the former dominates.

It is a good business but has been hit by perceptions that its customers will cut back their spending because they feel the brunt of the cost of living crisis. We think the recent Taylor Swift shows and the merchandise spent by them (estimated to be over $60m at the concerts alone) show that they will still spend when they perceive value.

In FY24, sales grew 10% to $288.5m, EBIT increased by 17% to $47.1m and its profit rose 45% to $34.23m. The company paid 35.5cps in dividends throughout the year. It has started FY25 on a solid note, growing group sales and underlying profit by 16%.

We are optimistic for further growth in the next 12 months as the Stage 3 Tax continue to be reflected and further tax cuts are implemented (i.e. the HECS repayment thresholds being increased and tax rates being cut in the next couple of years). These moves will put more money into the pockets of Universal Store's customer base.