The Experience Co Ltd (ASX: EXP) share price has been amongst the best performers on the Australian share market on Friday following the release of its full year results.
In morning trade the adventure tourism and leisure company's shares are up a massive 20% to 23.5 cents.
What happened in FY 2019?
For the 12 months ended June 30, Experience Co delivered a 19.2% increase in revenue to $161.3 million. This was driven largely by the full year contribution of acquisitions made in FY 2018 and a 1.3% increase in skydiving volumes to 192,179 jumps.
The company's gross profit grew at a slower rate of 13.6% to $63.2 million. Management blamed its narrowing gross profit margin on the negative impact of its sales mix.
Experience Co posted underlying EBITDA in line with its guidance at $27.2 million, which was down 10% on the prior corresponding period. And due to a $62.5 million non-cash impairment of its Adventure Experiences segment, the company reported a statutory net loss after tax of $48.3 million.
In light of this, the Experience Co board decided not to declare a dividend in FY 2019.
The company's chairman, Bob East, said: "While our core skydiving business returned solid results, FY19 was a challenging year with overall financial performance below expectation primarily in our Far North Queensland operations. The new leadership team, led by CEO, John O'Sullivan, is well placed to review and refine our strategic outlook, simplify the business and drive improved operational and revenue performance aimed at increasing shareholder value."
New CEO, John O'Sullivan, was equally optimistic on the future.
He said: "I am excited to have joined the business and to lead the strategic review. I am confident that the result of the review will deliver improved performance and unlock the earnings and growth capability of this business placing it in a position to meet the demands of our customers in one of the fastest growing sectors in Australia."
No guidance was given for FY 2020, but management intends to present its strategic review update at its annual general meeting in November.
