- Infrastructure, social and environmental development player Cardno was under the spotlight as its shares skyrocketed by over 50% post the release of its FY2020 guidance update.
- For FY2020, Cardno expects EBITDA in the range A$41 million - A$43 million, a significant improvement compared to A$38 million in FY2019.
- The Company highlighted that despite the unprecedented challenges due to COVID-19, it has managed to conduct its business operations as usual.
- Recently, Cardno expanded its APAC Team with the recent appointment of Mr Stuart Yeaman AM as a Projects Director.
Brisbane-headquartered (ASX:CDD) saw its stock jump over 50% following an announcement on its FY20 guidance update.
Before we shed more light on the guidance, let us get a quick background on the Company.
Cardno Limited is a professional services firm delivering infrastructure, social, and environmental projects. The Company operates in over 100 nations and has a workforce of more than 4,000 employees.
The Company provides solutions to its clients daily by combining their industry experience and depth of technical brilliance across the critical service areas of infrastructure, environment & international development.
Cardno was under the spotlight when its share price skyrocketed on the ASX post the release of an announcement related to the FY2020 guidance update.
By the end of the day’s trade on 24 July 2020, Cardno stock settled at A$0.340, surging 51.111% compared to its previous close. CDD has a market cap of A$100.58 million and a PE ratio of 2.58x.
While the Company faced early hiccups because of the coronavirus pandemic and had to withdraw its FY20 earnings guidance, Cardno did manage to provide its services and products despite the predicament.
In this article, we would know about its FY2020 guidance and would also know other reasons which have brought the Company in the limelight.
In the announcement released by the Company on 24 July 2020, Cardno expects its operating earnings before interest, tax, depreciation, and amortisation for the financial year ended 30 June 2020 in the range A$41 million - A$43 million. The net cash generated from the operating activities before interest and taxes are predicted to be ~A$52 million.
Cardno has witnessed continuing improvement in the working capital metrics y-o-y. Also, the net debt of the Company is expected to be around A$1 million.
Despite the COVID-19 pandemic, the Company has been able to provide its services and solutions. While the uncertainty concerning COVID-19 and its impact on the business persists, CDD has had an impressive start to FY2021 with a robust balance sheet. Further, the Company also confirmed that its various businesses are uniquely placed to weather the storm and is closely working with its customers to deal with the ongoing challenges.
Other Recent Developments of Cardno:
Expansion of the APAC team:
On 8 July 2020, the Company announced the appointment of Stuart Yeaman AM as projects director. Stuart Yeaman has 25 years’ experience in the Australian army along with eight years working for a major engineering consultancy. As per Asia pacific defence director Jonathan large, the appointment of Stuart would provide an essential lift to the Company with a strategic and critical project focus.
Cardno Joined the Committee for Brisbane 2033: Olympics And Paralympics Legacy Taskforce
Cardno, on 14 July 2020, announced that it joined the committee for Brisbane’s Brisbane 2033: Olympics and Paralympics legacy taskforce. The Company will be contributing along with APAC operations manager, Robbie Marshall, by providing its knowledge and experience to Brisbane 2033.
Brisbane is facing both planned as well as unexpected challenges because of COVID-19. In this situation, dealing with the crisis is crucial for the recovery and future growth of Brisbane.
The committee created a legacy task force to deal with threats and opportunities concerning legacy planning.
The task force was formed intending to assist in the development of policy initiatives. The task force would also build infrastructure projects for providing continuing cultural, social, environmental, and economic dividends.
Robbie Marshall would be working with a collective group of contributors who belongs to various backgrounds. He would utilise his expertise in providing greater infrastructure results for urban & regional communities throughout north-west Australia, supported by Cardno, which has expertise within this space.
Cardno Project and Research Recognised in Herpetological Review:
In June 2020, the efforts of Cardno’s team were published in herpetological review for analysing the project, in which the team collected data to verify terrestrial snake densities & assess herpetofaunal evaluation techniques.
The analysis report was prepared by Hofkes and Cardno’s biologist Steve Godley. Hofkes verified the existence and addressed the movement of a couple of state-threatened reptiles. These reptiles were gopher tortoises and Florida pinesnakes. The report concluded with herpetofaunal assessment proposals for future development projects across the globe.