The Coventry Group Ltd (ASX: CYG) share price has popped up 5.83% at the time of writing and is currently trading at $1.09.
The bounce follows Coventry’s release of its half-year results for the period ended 31 December (1H21).
Let’s take a look at how Coventry has been performing.
Coventry Group financial highlights
Coventry’s 1H21 revenue was up 12% compared to the prior corresponding period (pcp). Revenue for the period rang in at $137.8 million versus $122.6 million for 1H20.
The group reported a net profit after tax (NPAT) of $2.3 million, which was a bump up from the $2 million posted in the pcp.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $7 million, a 74.5% jump from $4 million in 1H20.
Group underlying earnings before interest and taxes (EBIT) came in at $5.7 million, popping up from $2.6 million for 1H20.
1H21 earnings per share (EPS) was 2.5 cents per share compared to the 1H20 EPS of 2.3 cents.
Including acquisitions, Coventry Group posted a 1H21 sales boost of 12.5%.
The company reported $103.8 million of total current assets at the end of 1H20, slightly up from $100.2 million held at the end of 1H21.
Acquisitions and future financing
On 1 December 2020, Coventry Group acquired H.I.S Hose Pty Ltd. For the 1-month period from 1 December 2020 to 31 December 2020, the acquired business contributed $802,000 of revenues and a net profit of $19,000 to the group.
Subject to final documentation, the business has entered a new 3-year financing arrangement with National Australia Bank Ltd (ASX: NAB). The deal includes a 3-year $45 million borrowing base facility and a $5 million senior secured ancillary facility.
Because of the uncertainties associated with the coronavirus, the company did not provide full-year guidance.
Coventry Group share price snapshot
Coventry Group is a distributor of industrial supply products such as fasteners, fluid hydraulics and cabinet hardware.
Over the past 6 months, the Coventry Group share price has zoomed up 37.3%.
The company’s market capitalisation is presently $92.7 million and there are 90 million shares outstanding.
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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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