Coventry Group's (ASX: CGL) H1 FY24 results demonstrate significant improvement, with sales up by 5.4% to AU$185.3 million and underlying EBITDA rising by 18.1% to AU$9.8 million compared to H1 FY23. Despite a statutory net loss of -AU$0.4 million, attributed to ERP project costs, the Group maintains a solid balance sheet with Net Tangible Assets of AU$35.8 million and Net Assets of AU$112.0 million. CEO Robert Bulluss attributes the growth to strategic initiatives aimed at achieving 10% EBITDA to sales ratio, which resulted in positive outcomes, especially in Australia's primary end markets.
While New Zealand operations faced challenges due to the economic downturn, Bulluss remains optimistic about its rebound. Konnect and Artia Australia performed exceptionally well, with sales up by 9.3% and EBITDA by 89.2%, while New Zealand branches faced short-term market challenges. The ERP upgrade progresses as planned, and the focus is on reducing debt and improving cash conversion. No interim dividends are declared, with plans to increase market share and achieve best trade distribution margins in the long run. Positive January 2024 trading performance sets an optimistic tone for future updates.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
