Invigor’s Condat set to deliver strongest ever result for FY2017
Published 10-OCT-2017 13:40 P.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The business is currently on target to deliver its strongest ever financial result in FY2017.
The forward outlook also appears promising based on its workbook at the beginning of October.
The group had booked orders combined with contracts being finalised with a value of more than $2.7 million; these comprised new contracts and contract extensions for customers across Europe.
Revenue of $7.6 million is forecast in FY2017, up from $7 million in the previous financial year. A large percentage of the anticipated full year income flows from recurring revenue-generating contracts that have high retention rates and scope for renewal at increased values given the potential to provide add-on services.
However, this is an early stage play and as such any investment decision should be made with caution and professional financial advice should be sought.
Condat’s significant proportion of annualised revenues should be viewed favourably by investors as it provides earnings predictability.
Margins strengthen to deliver EBITDA in excess of $1 million
Condat’s margins have increased significantly and the group is forecast to deliver a 115 per cent increase in EBITDA to circa $1.1 million, up from $512,000 in FY2016.
Management noted that the strong financial performance reflects Condat’s prominent position as an established industry player and leading vendor of IT-based smart media solutions, together with the increased deployment of its Skyware Workforce Management software solution.
Customers include broadcasters, media companies, content distributors and infrastructure operators across Europe.
Commenting on the division’s performance, IVO’s Chief Executive Gary Cohen said, “Condat continues to deliver very strong growth as part of Invigor, which is clearly evident by the forecast EBITDA performance for this financial year, greatly improved earnings margins, solid revenue growth, and the strengthening sales pipeline”.
There is also scope to accelerate growth and on that note Cohen said that the company was assessing ways to capitalise on Condat’s well-established European presence. He also noted that there was the likelihood of new contract wins and extensions from the group’s operations in Australia and Asia which should be formalised in the near term.
Based on the forecast revenue and EBITDA numbers it would appear that the Condat business is generating margins of circa 15 per cent. Based on the collective value of new orders booked and pending contract awards of $2.7 million this would equate to EBITDA of approximately $400,000.
General Information Only
This material has been prepared by StocksDigital. StocksDigital is an authorised representative (CAR 000433913) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573).
This material is general advice only and is not an offer for the purchase or sale of any financial product or service. The material is not intended to provide you with personal financial or tax advice and does not take into account your personal objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, StocksDigital, any of their related body corporates or any other person. To the maximum extent possible, 62C, StocksDigital, their related body corporates or any other person do not accept any liability for any statement in this material.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
