Experience Co Limited On A Trading Halt Due To Pending Announcement Of Earnings Guidance For FY19

Experience Co Limited On A Trading Halt Due To Pending Announcement Of Earnings Guidance For FY19

Experience Co Limited (ASX: EXP) is into the consumer discretionary sector and operates in the skydiving activities. It was formerly known as Skydive the Beach Group Limited and is considered as an adventure tourism and leisure company. The company is based out of Montague Street, Wollongong, Australia and operates in New Zealand.

On 11 Feb 2019, the company announced that its shares will be placed to trading halt pending an announcement release to the market. The securities will be in a trading halt subject to the earlier of the commencement of the normal trading on Wednesday 13, 2019 or when the announcement is released to the market. This is said to be owing to pending an update to earnings guidance for FY19.

The Group delivered results in line with guidance issued on 30 April 2018 of total revenue of $135,000,000 representing a 51% increase on FY2017, and EBITDAI of $27,411,000 representing a 31% increase on FY17.

The outlook and strategy of the company going forward in FY19 includes consolidation of the businesses acquired during the year with a focus on synergies, efficiencies and enhanced operating processes and systems gained from the acquisitions, to grow the customer base as a result of additional and enhanced experiences options and locations, capitalise on the well respected and recognised brands, acquire complementary businesses offering increased experience options to customers aimed at growth and development as feasible, to take advantage of the growth in domestic and international tourism including initiatives to capture the growing Asian market, increasing the  capability to capture growth in trends towards online bookings and ongoing focus on human capital to achieve the next growth stage of the business.

On the financial front, the company has reported sales of ~$135.30 million in FY18 as compared to ~$89.56 million in FY17. The net profit for the company stood at $6.78 million in FY18 as compared to $9.48 million in FY17. The total assets of the company were reported to $232.43 million in FY18 as compared to $139.58 million in FY17. On the cash flow front, the company reported the cash inflow from operating activities at $14.84 million in FY18 compared to $12.64 million in FY17. However, the cash outflow from investing activities in FY18 stood at $95.58 million vs an outflow of $50.70 million in FY17. The cash flow from financing activities of the company represented an inflow of $78.41 million in FY18 compared to $34.73 million in FY17.

Now let us quickly have a look at the Experience Co Limited’s stock performance and the return it has posted over the last few months. The stock last traded at a price of $0.265 with a market capitalization of $147.29 million. The stock has yielded a negative YTD return of 11.67% and posted negative returns of 48.04% and 8.62% over the last six months and three months period respectively. It has a 52-week high price of $0.790, with an average volume of ~ 1,023,028. The stock is trading at a PE multiple of 19.78x with an EPS of AUD 0.013. It has an annual dividend yield of 3.77%.

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