Adelaide Brighton Limited (ASX: ABC) is happy make an announcement regarding the appointment of a new chief executive officer Mr. Nick Miller who will be the successor to CEO Martin Brydon. In the month of May, Mr. Brydon made an announcement in the company’s annual general meeting regarding his plans of taking retirement. He laid emphasis on his retirement for the succession to happen in a smooth and orderly manner. Recently, Mr. Miller was the Managing Director and CEO of Broadspectrum. Before that, he was associated with Fulton Hogan as a Managing Director. Fulton Hogan is a large resource-based contractor company who is specialized in infrastructure services, construction materials, and civil construction activities in regions of Australia and New Zealand. He served as Managing Director role at Fulton Hogan for a period of eight years. He has a good track record for delivering strong business performance over a period of 25 years of his career. He has huge industry experience and has been working in the leadership positions in major regional infrastructure and construction service providers. It is expected that Mr. Miller will take the ownership of the position by 17 April 2019. Mr. Brydon, after his retirement, will remain to be with the company to ensure the smooth business continuity. The chairman of the ABC Mr. Zlatko Todorcevski is delighted about the appointment of Mr. Miller as the CEO, after a thorough executive search process. Mr. Nick Miller is an outstanding leader who is having an ideal mix of commercial expertise, strategic insight, and operational excellence. Adelaide Brighton welcomes Mr. Nick Miller as a new CEO of the company who will lead the company’s continued delivery, based on their strategies. Mr. Todorcevski expresses his gratitude towards Mr. Brydon who will be taking the retirement next year after servicing company for more than 30 years and almost 5 years as a chief executive officer.
As per the half-year financial report as on 30 June 2018, the company made a net profit of A$84.5 million which was 17.7% increase as compared to the previous corresponding period (PCP). The underlying net profit after tax was A$ 85.2 million. The revenue of the company increased by 11.7% as there was continuous growth in the east coast market, improved pricing, and the acquisition. The net cash flow from operating activities was A$107.6 million which increased by 39.4% as compared to 1H17. The net cash outflow from the investing activities was A$48.5 million. The major portion of cash was invested in the payment for the plant, property, equipment, and intangibles. The net cash outflow of the company from the financing activities is worth A$22.1 million. The major outflow of cash through financing activities was due to the dividend paid to the company’s shareholders worth A$104 million. At the end of the period, the net cash and cash equivalent available with the company was A$94.7 million. The company has total assets worth A$2,065.6 million and total liabilities worth A$1,229.8 million. This indicates the company has a potential to clear its long-term obligations. The current asset of the company is A$512.2 million and total current liabilities worth A$380 million which shows that the company can clear its short-term obligations as well. The total shareholder's equity is worth A$1,229.8 million.
Throughout the journey of the company, the performance was 109.51%. The 5 years and 10 years performance of the company is 69.03% and 144.62%. However, the 6 months and 1-year performance of the company is negative. In 6 months, the performance of the company was -6.12% and in 1 year the performance was -2.25%. The current market price of the company was A$5.78 with the market capitalization of A$ 3.79 billion and PE ratio of 19.24x. As per the chart, the moving average convergence and divergence line (MACD line) is moving below the signal line indicating the price to be bearish in nature.
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