On Friday, the Structural Monitoring Systems Plc (ASX: SMN) share price shot up by 12% to $0.56 cents following an annual performance summary. The Structural Monitoring Systems share price has opened strongly again this morning, with shares up another 6.25% to 0.60 per share at the time of writing.
What were the results
The announcement by Structural Monitoring Systems included information about the unaudited financial performance of wholly owned subsidiary, AEM. It also included an update about the approval process underway for the company's new technologies.
AEM's full year 2020 normalised earnings before interest tax depreciation and amortisation were approximately $4.4 million. This represents a 24.6% increase on financial year 2019.
Full year sales for the 2020 financial year were $18.96 million, which is a 10.7% increase on the 2019 financial year.
Structural Monitoring Systems, the parent entity, reported a cash balance of $2.113 million at the end of the financial year.
The announcement stated: "The 2020 revenue and profitability achieved by AEM is a remarkable accomplishment particularly in light of the unprecedented challenges present in the global aviation market together with the operating impact imposed by COVID-19 on holistic commercial platforms."
Structural Monitoring Systems reported that AEM will continue to work on developing new generation product solutions that are primarily focused on rotorcraft markets, with R&D spending increasing from 10% of sales to 13% of sales. According to the announcement, AEM will continue to add to its pipeline of new products under development and will target several of the largest global original equipment manufacturers around the world.
The company reported that AEM's sales for the first quarter of the new financial year were already strong and higher than the same time last year.
The company's CVM technology, which involves sensors placed at strategic locations on an aircraft to detect cracks, moved closer to commercialisation with testing commencing in the coming month. This supervised testing will move the technology closer to gaining approval from the American Federal Aviation Administration.
Structural Monitoring Systems also reported that its 2ku wifi program, which allows flight passengers access to internet much faster than usual in flight internet speeds, is also on schedule toward gaining approval from the Federal Aviation Administration.
About the Structural Monitoring Systems share price
Structural Monitoring Systems develops and manufactures aviation-related technology that has seen demand from airlines around the world. Recent announcements suggest that the process of gaining government approval for the company's new technologies has been tracking according to schedule.
The Structural Monitoring Systems share price is up 155% from its 52 week low of $0.235 cents, however, it is down 40% since the beginning of the year. The Structural Monitoring Systems share price is down 9.77% since this time last year.
