MSV - Mitchell Services

Still a sleeper this one. Keep paying down debt and generating positiv cash flow

MSV finally heading in the right direction today following the release of the company's December Quarterly Report and Investor Update. The highlights are as follows:




I don't think that the MSV share price is currently pricing in the dramatic increase in operating cash flow and EBITDA. Still undervalued IMO.

MSV up 22.5% to 4.9c so far today. Volume is the largest in the last 12 months.

happily buying more while this one still flys under the radar

Highly encouraging first half results

dividend on the way and contract extensions, positive signs

MITCHELL SERVICES LIMITED
(ASX: MSV)
Material contract extension and scope increase
Key points
 Extension of Anglo American UIS contract
 Contract expiry extended to 31 December 2021
 Further two-year extension option available
 Material scope increase
Mitchell Services Limited (the Company) is today pleased to announce that it has entered into a material
variation in relation to its Underground In-Seam (UIS) drilling contract with Anglo American.
Under the varied terms, the Company will provide up to six UIS rigs and will provide specialist
underground coal drilling and gas drainage services at Anglo American sites, Grosvenor and Moranbah
North. The variation has also resulted in the extension of the contract expiry date, with the revised expiry
date under the variation now 31 December 2021 with a further two-year extension option available.
Whilst the Company anticipates a significant long term revenue and EBITDA benefit as a result of this
extension and scope increase, the Company notes that, given the timing of the variation, the expected
start date of the additional rigs and the anticipated level of associated ramp up, the variation is not likely
to have a material impact on the recently provided FY19 revenue and EBITDA guidance numbers of
$110m-$120m and $21m -$23m respectively.

a very tidy Annual report .


Revenue from ordinary
activities Up 65% to 120,205 72,700 47,505
EBITDA Up 286% to 24,112 6,254 17,858
Profit/(Loss) after tax Improvement of
842% to 17,368 (2,340) 19,708
Profit/(Loss) after tax
before significant items
Improvement of
842% to 17,368 (2,340) 19,708

a bit of froth been taken off the top of this one, see how the next quarterly comes us

It's been a while since any comments. MSV still claiming strong results but is that true? SOL holding has just gone under 5%

MSV records strong FY23 Q2 revenue and a material gross debt reduction.
• FY23 Q2 Revenue of $59.1m
• FY23 Q2 EBITDA of $6.6m
• EBITDA and operating cash headwinds in FY23 Q2
• 6-month Gross Debt reduction of $5.7m

Quarterly Investor Update
Mitchell Services Limited delivers solid fourth quarter financial and operational performance
• Quarterly revenue of $56.0m
• Quarterly EBITDA of $9.9m
• FY24 EBT of $13.3m (up 29% vs FY23)
• Quarterly operating cashflow of $9.4m (95% EBITDA conversion rate)
• Further net debt reduction of 75% since 31 March 2024 to $1.9m
• Annual Return on Invested Capital of 16.5%

Capital Management Update
Total capital expenditure for FY24 was $17.0m which is largely in line with expectations and slightly increased when compared to the figure of $12.6m in FY23. Maintenance capex continues to support high levels of availability across all equipment with breakdown rates remaining negligible.

Given the strong FY24 operating cashflows and the modest levels of capital expenditure, net debt at 30 June 2024 was $1.9m which represents a decrease of approx. 75% since 31 March 2023 ($7.6m) and an 89% decrease since 30 June 2023 ($17.6m).

The overall strategy of the Company is to optimise the long term growth of the business and returns to shareholders by:
• Maintaining and, where possible, improving the profitability of the existing business
• Identifying opportunities in the domestic mining sector to provide new services to Tier 1 clients
• Identifying drilling opportunities
offshore for existing clients.

With a significantly stronger balance sheet, the Company now has the advantage of optionality and will seek to optimise its capital allocation across the four pillars of dividends, buy backs, growth and debt management.

The Company has recently extended its on market buy back by a further 12 months (ending July 2025) and confirms its FY24 final dividend guidance of approximately 2cps.

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