The Cellnet (ASX:CLT) share price has rocketed up 21% today. Here's why.

The Cellnet (ASX: CLT) share price has rocketed up 20.97% today after the company released a positive trading update for November.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published December 14, 2020 4:52 pm AEDT

The Cellnet Group Limited (ASX: CLT) share price is soaring today after the company released a positive trading update for November. During morning trade, the Cellnet share price reached an intra-day high of 8.5 cents. However, its shares have pulled back to 7.5 cents at the time of writing, up 20.9%.

Surge in ASX share price represented by happy woman pointing to her big smile — Image source: Getty Images

Quick take on Cellnet

Formed in 1992, Cellnet sources and distributes lifestyle tech products to retail, business and online channels across Australia and New Zealand. The company specialises in mobile phones, AV and IT equipment, audio, gaming accessories and software.

Cellnet is also involved in services to the mobile telecommunications and retail industries.

What's driving the Cellnet share price higher?

The Cellnet share price is marching higher today after the company advised it was continuing to see strong momentum in the month of November.

Cellnet said that revenue for last month saw a 27% year-on-year increase to $14.78 million. This was underpinned by robust retail sales that included the iPhone 12 launch and console gaming accessories.

Following an uplift in revenue, net profit before tax rose to $1.19 million, reflecting a 174% year-on-year surge. During the July to October period, the company reported net profit before tax of $1.6 million.

For the 11 months so far, favourable trading conditions have led Cellnet to a net profit before tax of $2.79 million. This compares to the $2.04 million achieved on the same period last year.

Management commentary

Cellnet chief executive Dave Clark welcomed the strong recent performance, saying:

We continue to be positive about the current financial year, with the business performing very well across all categories and strong demand being experienced in the lead-up to Christmas.

About the Cellnet share price

While the company appears to be making tailwinds, the Cellnet share price has dropped heavily over the past year. Reaching 17.5 cents last December, the current share price represents a decline of almost 60%.

While COVID-19 significantly impacted the retail industry in 2020, Cellnet is beginning to see an uptick on sales post-pandemic.

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