Guinness European Equity Income Fund on SPIE SA
Thesis
The fund believes investors are focusing too heavily on weakness in France, where the fibre rollout is ending and building activity is lower. It argues that SPIE's broader structural demand drivers remain intact across power grids, data centres and nuclear, while Germany and North-West Europe are performing particularly well. SPIE is also consolidating a fragmented market through bolt-on acquisitions, supporting organic growth, while management expects margins to continue improving.
“the structural demand drivers for SPIE’s services in areas such as power grids, data centres and nuclear are firmly in place.”
Key risks
- Weak activity in France following the end of the fibre rollout and lower building activity
- French political uncertainty ahead of the 2027 presidential election