Stealth Global Holdings Ltd (ASX: SGI) supplies and distributes workplace consumable products. Today the company provided its trading update for the first half of 2019 (H1 FY 2019) in which it reported that its Proforma total group revenue has increased by 13% to $36.0 million as compared to the previous corresponding period (pcp). Despite this news, the Company’s Shares traded flat today at $0.150 on 7 February 2019.
The revenue growth was driven by Western Australia which benefited from improved market conditions in the resources sector and the acquisition of new customers. The company also announced that its Proforma sales in the United Kingdom (UK) operations servicing customers in Africa more than doubled as compared to previous corresponding period. However, the Proforma sales from the Operations in Africa were down by 4 percent during the period.
The company’s Managing Director Mr. Mike Arnold was delighted that the combined Group achieved solid growth for 1H 2019 against the same period in the previous year. He noted that the growth was achieved despite the distraction associated with the ASX listing and Heatley’s acquisition. According to him, this growth shows the underlying strength of the company’s business model.
At the Annual General Meeting, the company had informed that it has a clear plan to build shareholder value and leverage competitive advantage as an international supplier and distributor of workplace consumable products. The company is committed and focused on its strategy across all four competitive business models. Further, the company is developing and expanding its value proposition across its key markets of Australia, the United Kingdom, Africa, Europe and SE Asia.
As per the company’s outlook, all business units have incremental sales projects for delivery in the second half of FY2019 and a strong pipeline of prospects, with a focus on winning new large and medium customer types. The company is expecting a stronger performance in the second half of FY 2019 supported by new customer gains.
As per Mr. Mike Arnold “Longer term, sentiment across key markets and sectors Stealth operates in remains encouraging and management has increased confidence for growth in 2020 and 2021.” Further, the company is also actively seeking further acquisition and strategic partnership opportunities aligned with its strategic criteria.
For FY 2018, the company had reported total revenue of $23.5 million and cash flow from operating activities of $0.204 million. The total revenue of FY 2018 was 33% higher than the previous corresponding year. The company’s Earnings Before Interest Taxation Depreciation and Amortization (EBITDA) before Growth Related Investment (GRI), restructuring and pre-IPO costs was $0.7 million in FY 2018. During the year the company the Company expanded its services and operations in new markets.
The company was listed on ASX on 2 October 2018, and in the past one month, the share price of the company has decreased by 6.25% as on 6 February 2019. SGI’s shares traded at $0.150 with a market capitalization of circa $14.23 million as on 7 February 2019.
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