A tough day for ANG yesterday as they missed FY24 expectations across most metrics and poured cold water on the market’s expectations for FY25.
- FY24 Revenue of $313.2m, up 21% y/y but at the lower end of company guidance of $310-330m
- Underlying earnings before interest & tax (EBIT) up 65% to $38.6m, below $40.7m expected.
- Underlying net profit after tax (NPAT) of $31m, at the bottom end of the guidance range of $31-33m
Guidance was the key; while they talked about being conservative on the call, they guided to FY25 revenue of $350m, which was 3% below current consensus, and earnings before interest and tax (EBIT) of $50m, ~8% below consensus, though more like ~12% below some of the more optimistic analysts (i.e., Shaw was forecasting $57m).
CEO David Singleton talked about the vibe in Perth being on the softer side, particularly amongst the Iron Ore miners, and given iron ore clients form 33% of ANG’s revenue, his conservatism seems prudent. As a refresher, ANG designs and manufactures customised dump truck bodies, buckets, water tanks, tyre handlers and other products, and while they talked to strength in other parts of the world ANG operate, their recent experience in WA seemed more downbeat.
- We trimmed our position in ANG within the Emerging Companies Portfolio at 64c last month. However, yesterday’s update has turned us neutral on their outlook in the short term, and we are not considering adding to our position into current weakness.
