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Highlights:
- Mining services and capital goods firm AJ Lucas has gained almost 60% in last one week on ASX.
- On year-to-date basis, the stock of the company has went up over 417% on ASX.
- AJ Lucas has been making news for its upcoming collaborations with the UK government and regulators.
Shares of AJ Lucas Group Limited (ASX:AJL), a specialist provider to the energy, mining and infrastructure sectors, were spotted trading 18.571% higher at AU$0.207 apiece at 11:12 AM AEST on ASX today (12 September 2022).
The shares of this capital goods firm have gained 59.23% in the last five trading days. In the last one month, the stock has moved up 130% and in the last six months, the shares of AJL have gained 245%. Over the last 12 months, the stock has surged 590% and in the last five years, the stock has gained 8.95%. On a year-to-date basis, AJL shares went up 417.50% (as of 12:03 PM AEST, 12 September 2022).
Why the company has been in news lately?
- On 9 September 2022, AJ Lucas informed that the moratorium on hydraulic fracturing, introduced in the UK in November 2019, has been lifted. AJ Lucas stated that it now looks forward to working with the UK government and regulators.
- The shares of AJ Lucas gained more than 18% on 9 September, backed by this news.
- AJL is now expected to work in collaboration with the UK government bodies on setting up safe and sensible limits on ground vibrations. Also, planning and permitting systems that can deliver advantageous and timely results can be worked upon.
- AJL has been making news for its continuous emphasis on the perils of increasing dependence on expensive and rising emission gas imports. The UK was also set to import more than two-thirds of its gas by the end of this decade.
- AJL has been focusing on troubles that can be caused due to supply shortage and price hikes in gas and energy.
- AGL also informed on 9 September that an independent gas industry will result in job creation in the UK apart from generating tax revenues for both central and domestic government.
- On 30 August 2022, AJL had announced its full year results. As per AJL, it achieved solid numbers despite some challenges.
- Lucas reported an EBITDA of AU$18 million for the year ended 30 June 2022. This was down 13.9% on the AU$20.9 million achieved in the previous year. The result was achieved on a 10.9% rise in revenue from AU$111.1 million to AU$123.2 million.
- Lucas stated that the year was impacted by several factors like client operational delays in the first half, shutdown of operations at an important site and major weather events.
- The company reported a net loss of AU$11.3 million, compared to AU$3.4 million of profit in the previous year. Net finance costs incurred totalled AU$22 million, against AU$14.2 million in the last year, a rise of AU$7.8 million.
- Also, finance costs included a AU$4.1 million unrealised foreign exchange loss on US dollar, related-party debt, compared to a AU$3.3 million foreign exchange gain in the last year, resulting in a AU$7.4 million turnaround.
- Cash flow from operating activities fell by AU$7 million from AU$19.6 million of last year to AU$12.6 million this year.
About AJ Lucas Group
Lucas has been a leading provider of ecploration, drilling, production and directional drilling services to miners across the world for over two decades. The ASX-listed firm also possesses a vital portfolio of Petroleum Exploration Licenses.
