What: For a company boasting a market capitalisation of $670 million, construction industry software solution provider Aconex Ltd (ASX: ACX) sure has flown under the radar of many investors since its initial public offering (IPO) in December 2014.
It hasn’t flown under the radar of all investors however; Aconex’s share price has enjoyed a 120% rally since first trading on the ASX!
So What: Aconex might now start to garner more attention from the wider market thanks to the release of its inaugural full year results as a listed company, particularly given those results beat both prospectus forecasts and updated guidance.
Here are the key stats:
- Revenue up 24% to $82.4 million
- Australia and New Zealand revenues up 15%
- International revenues up 33%
- Earnings before interest, tax, depreciation and amortisation (EBITDA) from core operations of $3 million
- Net profit after tax (NPAT) a loss of $2.5 million
- Cash and cash equivalents amounted to $29.1 million reflecting positive cash flow from operations and proceeds from the IPO
Now What: Management noted that Aconex’s global market penetration continued to expand including with leading industry players such as Lend Lease Group (ASX: LLC) and Cimic Group Ltd (ASX: CIM) and via winning new customers in the Americas and the Middle East.
Guidance provided for the first half of 2016 is for total revenue of between $51m and $53m, EBITDA from core operations of between $5.5m and $6.5m and NPAT from core operations of between $2.5m and $3.5m.
The half-year guidance suggests the 2016 full year results will show significant growth year-on-year, which is good for shareholders as Aconex’s shares appear to have significant growth expectations already priced in.