Advanced Braking Technology achieves 50% growth in first half
Advanced Braking Technology (ASX: ABV) has generated year-on-year revenue growth of 50% in the first half of fiscal 2017. The loss of $390,000 compared favourably with the previous corresponding period’s loss of $910,000, while the group made a nominal operating profit.
The group’s cash flow performance was arguably the best measure as it was close to breakeven compared with $1.4 million in cash outflow in the previous corresponding period. Cost controls were effective in the first half with expenses falling by circa 14%.
Advanced Braking Technology develops innovative braking systems with its main product being the Sealed Integrated Braking System (SIBS), a comprehensively patented Australian invention now used widely in light commercial vehicles in the mining industry.
The first half appears to have been an inflection point for the company as it has continued a positive upward trend in January, having received orders to the value of $1 million driven by strong demand from both domestic and international mining customers.
Management said that stronger domestic demand for its failsafe product range had underpinned the solid first half, and that this has been complemented by robust international orders in January with significant orders received from Mongolia, Canada and Indonesia.
Mongolia’s mining industry is thriving with a number of coal projects in train and the mega Oyu Tolgoi copper gold mine in the South Gobi region being developed by Rio Tinto and partners.
It should be noted that projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.