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.
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.”
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended PWR HLDING FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.