Angel Seafood Holdings Limited (ASX: AS1) operates as a holding company. The Company, through its subsidiaries, provides fishery services. Angel Seafood Holdings farms and produces clean, green, and organic oysters. Angel Seafood Holdings serves customers worldwide.
The company has recently announced that it has secured an increase in its general banking facility with the National Australia Bank (NAB). The approval is subject an internal NAB valuation of the Company’s Oyster Leases and Licences, provided these are valued higher than $3.72 million then the facility will be confirmed. The current book value of leases and licences is $6.49 million.
The total value of the debt facility available to the Company will increase by $1.2 million to $4.0 million, providing Angel additional flexibility and certainty with its capital structure as it approaches positive operating cash flows.
Commenting on the increased banking facility, CEO of the company, Mr. Zac Halman, said that the management is delighted to have the support from their lenders, NAB, and to have secured an increase in its debt facility. The extended bank facility will provide the company with greater flexibility and certainty as the management continue to execute on its growth initiatives. With operating cash flows growing, and a CAPEX program that is mostly complete, the Company has a strong capital structure in place to support its expected growth in oyster production.
The company seems to be well placed to continue to add and upscale the level of operations. The company is also pleased to report that its activities are performing in line with expectations. The health of spat and oysters is pleasing, with mortality rates within the expected summer ranges, while Coffin Bay and Cowell leases are moving towards full utilisation. The health and numbers of stock on hand currently positions the Company well to continue to grow production.
For the half year ended 31 December 2018, the company reported a consolidated loss after income tax of $ 968,370 vis-à-vis $ 1,131,557 for the period ended 31 December 2017. This represented a 14.4% improvement on the results reported for the period ended 31 December 2017. Revenue in the period increased by 184.3% to come in at $2.48 Mn vis-à-vis $ 873,253 reported for the pcp. This increase reflects expansion as planned in the post-IPO period.
Net assets for the period decreased by 1.5% to come in at $10.952 Mn, with total assets increasing by 28% to $ 15.717m. Most assets are valued at cost with the exception of oyster stocks, which are valued using a Fair Value Model. This model resulted in a reduction of $ 63,308 over the reporting period. Cash and cash equivalents at 31 December were $ 258,832.
Now, let’s have a glance at Angel Seafood Holdings Limited’s stock performance and the return it has posted over the past few months. The stock last traded at a price of $0.15, flat during the day’s trade with a market capitalisation of ~$ 18.93 Mn. The stock has provided a YTD return of 11.11% & also posted returns of -11.76% & 15.38% over the past six months and one-month period respectively. It had a 52-week high price of $ 0.220 and a 52-week low price of $ 0.125, with an average volume of ~ 108,869.
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