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Was interested in buying these on a dip (1.25), but looking at the MD, not anymore.
CYG - Coventry Group
- Thread starter Muschu
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- coventry group cyg
Dona Ferentes
A little bit OC⚡DC
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Some think CYG has turned a corner (but is it an infinity maze?). An investor SNC Sandon Capital has been having a look and thinks there is upside
Description
CYG supplies industrial products and services to the mining, manufacturing, construction, agriculture and defence industries through two divisions:
(i) Trade Distribution, which distributes fasteners and other industrial products through a network of branches in Australia and New Zealand
(ii) Fluid Systems, which designs, manufactures, and supplies hydraulics, lubrication, fire suppression and refuelling systems and products in Australia
Financial Status
In FY20, CYG delivered its best performance for many years despite the backdrop of shutdowns arising from the COVID 19 pandemic. Underlying EBITDA improved 136% versus the previous year and the company reported its first underlying profit in six years. The company was also free cash flow positive for the first time in six years. The balance sheet is in good shape with net debt of $3.3m at 30 June 2020 and the company has a large degree of financial flexibility having recently increased its securitised trade receivables facility to $40m for a 3 year term.
Covid 19 Impact & Outlook
The major operational impact from COVID 19 on CYG in FY20 was the suspension of operations in New Zealand. Since recommencing operations, sales in New Zealand have rebounded to prior levels. CYG exposures to the infrastructure, commercial construction and mining sectors stands it in good stead to continue to deliver improved financial performance into the medium term. Cost savings implemented in late FY20 and early FY21 should also positively augment earnings in the short term. The major non operational impact has been the inability to close the H.I.S Hose acquisition due to the Victorian Government metropolitan Melbourne lockdown. We expect this acquisition to close when lockdown restrictions ease.
Market cap around $60mill. Might be getting house in order, but is it a winner?
Description
CYG supplies industrial products and services to the mining, manufacturing, construction, agriculture and defence industries through two divisions:
(i) Trade Distribution, which distributes fasteners and other industrial products through a network of branches in Australia and New Zealand
(ii) Fluid Systems, which designs, manufactures, and supplies hydraulics, lubrication, fire suppression and refuelling systems and products in Australia
Financial Status
In FY20, CYG delivered its best performance for many years despite the backdrop of shutdowns arising from the COVID 19 pandemic. Underlying EBITDA improved 136% versus the previous year and the company reported its first underlying profit in six years. The company was also free cash flow positive for the first time in six years. The balance sheet is in good shape with net debt of $3.3m at 30 June 2020 and the company has a large degree of financial flexibility having recently increased its securitised trade receivables facility to $40m for a 3 year term.
Covid 19 Impact & Outlook
The major operational impact from COVID 19 on CYG in FY20 was the suspension of operations in New Zealand. Since recommencing operations, sales in New Zealand have rebounded to prior levels. CYG exposures to the infrastructure, commercial construction and mining sectors stands it in good stead to continue to deliver improved financial performance into the medium term. Cost savings implemented in late FY20 and early FY21 should also positively augment earnings in the short term. The major non operational impact has been the inability to close the H.I.S Hose acquisition due to the Victorian Government metropolitan Melbourne lockdown. We expect this acquisition to close when lockdown restrictions ease.
Market cap around $60mill. Might be getting house in order, but is it a winner?
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my entry for the July comp. is CYG
i do not hold this share ( but have put it on my watch-list )
i am thinking , industry will try to repair/upgrade more plant/machinery to try to keep costs down and partly because new plant might be difficult to obtain
i do not hold this share ( but have put it on my watch-list )
i am thinking , industry will try to repair/upgrade more plant/machinery to try to keep costs down and partly because new plant might be difficult to obtain
