Next Investors logo grey

Advanced Braking Technology achieves 50% growth in first half

Published 31-JAN-2017 14:39 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

Advanced Braking Technology (ASX: ABV) has generated year-on-year revenue growth of 50% in the first half of fiscal 2017. The loss of $390,000 compared favourably with the previous corresponding period’s loss of $910,000, while the group made a nominal operating profit.

The group’s cash flow performance was arguably the best measure as it was close to breakeven compared with $1.4 million in cash outflow in the previous corresponding period. Cost controls were effective in the first half with expenses falling by circa 14%.

Advanced Braking Technology develops innovative braking systems with its main product being the Sealed Integrated Braking System (SIBS), a comprehensively patented Australian invention now used widely in light commercial vehicles in the mining industry.

The first half appears to have been an inflection point for the company as it has continued a positive upward trend in January, having received orders to the value of $1 million driven by strong demand from both domestic and international mining customers.

Management said that stronger domestic demand for its failsafe product range had underpinned the solid first half, and that this has been complemented by robust international orders in January with significant orders received from Mongolia, Canada and Indonesia.

Mongolia’s mining industry is thriving with a number of coal projects in train and the mega Oyu Tolgoi copper gold mine in the South Gobi region being developed by Rio Tinto and partners.

It should be noted that projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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.