Another full day of earnings season today with plenty of action. Here is just a snippet of a few interesting reports and announcements.
Emeco Holdings (EHL)
Market Cap: $466.5m +4.8%
Emeco reported strong financial and operational results for the first half of FY25. The company’s revenue, excluding underground contract mining, increased by 11% compared to 1H24. Operating EBITDA rose to $145.8 million, a 6% increase, while Operating EBIT reached $68.3 million, up 13%. The EBITDA margin improved from 32% to 38%, and the EBIT margin increased from 14% to 18%. Operating NPAT was $38.3 million, a 15% rise, and statutory NPAT was $33.6 million, a significant 73% increase.
Emeco’s cash flow also saw a 22% increase, reaching $48.8 million, with a cash flow conversion rate of 94%. The company’s return on capital improved to 16%, and its leverage ratio decreased from 1.0x to 0.84x. Emeco reiterated its FY25 Operating EBITDA target of $300 million, despite potential impacts from weather events in Queensland and Western Australia. The company plans to focus on disciplined capital expenditure, cost efficiencies, and building market share through new projects and major contract extensions.
Cedar Woods Properties (CWP)
Market Cap: $456.3m +1.8%
Cedar Woods Properties Limited reported a significant increase in net profit after tax (NPAT) for the first half of FY25, reaching $15.0 million compared to $2.6 million in the previous corresponding period. The company declared a fully franked interim dividend of 10.0 cents per share, up 25% from the previous period. Cedar Woods achieved record presales of $642 million, a 22% increase, and forecasts higher revenue for an even stronger profit result in the second half of FY25. The company is guiding for a minimum 10% growth in full-year net profit for FY25 and anticipates continued growth into FY26, with more than half of the forecast FY26 revenue already secured by presales.
The company maintains a solid balance sheet with low gearing and significant undrawn finance facilities. Cedar Woods is accelerating acquisition efforts and boosting resources to capitalize on demand. The company reported first-half revenue of $196 million, up 59% from the previous period, with a stable gross margin of 26%. Higher revenue in the period resulted in a significantly higher first-half profit. The company expects higher second-half revenue and settlements to reduce gearing to the low 20% range.
Bailador Technologies Ltd (BTI)
Market Cap: $180.0m
Bailador Technology Investments has announced a $12.5 million investment in PropHero, an AI-enabled property investment platform. This investment is part of a $25 million Series A funding round. PropHero, launched in 2021, uses predictive AI models to help individuals source, purchase, and manage investment properties and is operational in Australia, Spain, Indonesia, and Ireland. PropHero has served over 2,000 customers, achieving a run rate revenue of over $35 million. The funds will be used to enhance AI capabilities, expand the partner network, and support international growth.
Southern Cross Electrical Engineering Limited (SXE)
Market Cap: $467.8m +14.2%
Southern Cross Electrical Engineering reported record half-year results for the period ending December 31, 2024. The company achieved a revenue of $397.4 million, up 55.5% from the previous year, and a net profit after tax of $16.2 million, up 67.8%. The group declared a fully franked interim dividend of 2.5 cents per share, a 150% increase. SCEE Group’s strong financial performance was driven by significant contributions from infrastructure projects, particularly the Collie Battery Energy Storage System, and ongoing works in the commercial and resources sectors. The company maintains a robust balance sheet with $114.8 million in cash and no debt, supporting further growth and acquisitions.
Step One Clothing Limited (STP)
Market Cap: $188.1m -28.8m
Step One reported a 6.8% increase in revenue to $48.1 million for the six months ending December 31, 2024, with EBITDA up 10.4% to $11.2 million. The company declared a fully franked interim dividend of 4.4 cents per share. Despite global cost-of-living pressures, Step One achieved double-digit earnings growth, driven by strong retention rates and increased order values. The company also expanded its women’s range and maintained a strong financial position with $43.8 million in cash and no debt.
Beamtree Holding Limited (BMT)
Market Cap: $75.3m -13.3%
Beamtree Holdings Limited reported 10% revenue growth for the first half of FY25, driven by a 31% increase in international revenue and a 95% customer renewal rate. The company achieved operating profit of $5k, a significant improvement from a $546k loss in the previous year. Beamtree also reported break-even operating cash flow and a strong sales pipeline of $61 million, with $13 million in later stages. The company secured a NZ$7.5 million debt facility to support its cash position and growth plans. Key developments include the launch of the Integrated Coding Platform in Saudi Arabia and new contracts in Australia, Canada, and the UK.
PharmX Technologies Limited (PHX)
Market Cap: $50.3m +1.2%
Pharmx Technologies Limited reported a 17% increase in revenue to $3.8 million for the half-year ending December 31, 2024. Despite a 3% decline in EBITDA to $1.0 million, the company maintained a strong cash position of $4.5 million. Key highlights include a strategic partnership with Toniq, expanding their reach to 99% of New Zealand pharmacies, and the early termination of a revenue share agreement with Alchemy, reducing liabilities by $0.8 million. The company also saw significant growth in their marketplace and gateway platforms, with notable increases in order volumes and invoice values.
Navigator Global Investments Limited (NGI)
Market Cap: $931.2m +15.5%
Navigator Global Investments reported a robust financial performance for the first half of FY25. The company achieved a record Adjusted EBITDA of USD 41.1 million, reflecting a 16% increase, driven by strong results from its asset management arm, Lighthouse Investment Partners. Key highlights include a 3% growth in ownership-adjusted assets under management (AUM) to US$27.1 billion and a 28% revenue increase to USD 92.3 million. With a flexible balance sheet and significant cash flow, NGI is well-positioned for growth, expecting FY25 earnings to surpass FY24 levels.
Retail Food Group Limited (RFG)
Market Cap: $124.6m + 8.7%
Retail Food Group reported a 24.7% increase in underlying revenue to $66.5 million in the first half of FY25, underlying EBITDA of $16.0 million, and a statutory NPAT of $7.3 million. Network sales grew by 3.2%, reaching $257.1 million, driven by the company’s Coffee, Café & Bakery (CCB) brands, with the addition of 25 new outlets and the closure of 17 low-performing ones. The acquisition of CIBO Espresso added 22 outlets to the portfolio.
As of 27 December 2024, RFG had cash reserves of $21.4 million and a net debt of $7.1 million, with $15 million in undrawn debt facilities. The company signed a 20-year development agreement with Restaurant Brands International to introduce Firehouse Subs to Australia, with plans to open 165 restaurants over the next 10 years, starting in the first half of FY26. RFG aims to enhance its core brands and expand its network domestically and internationally, leveraging technology to achieve growth.
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