In morning trade the PWR Holdings Ltd (ASX: PWH) share price is sinking lower following the release of its half year results.
At the time of writing the automotive cooling products and solutions provider's shares are 6.5% lower at $4.26.
How did PWR perform in the first half?
For the six months ended December 31, PWR delivered a 20.3% increase in revenue over the prior corresponding period to $29.8 million. Management advised that this comprised organic revenue growth of 17% and favourable foreign exchange movements during the period of 3%.
The company recorded growth across all primary categories, with 82% of revenue growth from emerging technologies and OEM categories.
PWR's EBITDA grew even quicker thanks to solid margin expansion. EBITDA was up 51.4% on a statutory basis to $7.6 million and 33.9% to $6.75 million on a normalised basis which excludes the impact of AASB 16.
On the bottom line, PWR reported a 10.1% increase in net profit after tax to $3.46 million and a 10.2% lift in earnings per share to 3.46 cents.
Pleasingly, the company reported strong operating cash flow growth of 47.9% to $5.46 million. However, due to its capital expenditures and higher tax and interest expense, the company posted a cash outflow of $2.4 million for the period.
Despite this, the PWR board elected to increase its interim dividend by a solid 18.8% to a fully franked 1.9 cents per share.
Outlook.
The company's managing director, Kees Weel, appeared to be pleased with the half and was optimistic on the future.
He said: "The diversification of revenue streams across new categories has seen a major portion of our growth come from emerging technologies and OEM customers."
And while no concrete guidance was given, it appears that more of the same is expected in the second half.
Mr Weel added: "Together with continued growth in our primary motorsport category, this is expected to continue in H2 FY20 and into FY21."
