Miner Petra Diamonds made it back to positive earnings territory in its 2021 financial year, ending June 30. This was helped by moving the Williamson mine into the “for sale” accounting category, given it is not in production, but the numbers also exclude $40m (£29m) from a diamond sold in July.
This year has represented a turning point for Petra, which diluted its shareholders almost down to zero to deal with a debt crunch, handing the vast majority of the company to creditors. Net debt is down to $228m from $700m at the end of 2020 because of this move.
Conditions are also improving in the luxury market Petra sells its stones into. Chief executive Richard Duffy believes that $40m for the 39-carat blue diamond is “likely the highest per carat price for a rough diamond ever achieved”.
Petra’s adjusted cash profit for the year of $135m was double the figure from last year, helped by generally higher prices and more sales of “exceptional stones”, which are sold for $5m and above.
The miner operates three mines in South Africa and has the Williamson mine in Tanzania, which is under care and maintenance. The plan was to re-open Williamson next year, but Petra “decided to review its strategic options” for the mine, while preparatory work for the restart continues.
Broker Peel Hunt forecasts Petra’s cash profits to climb more than a quarter this financial year, to $172m.
Petra has turned a corner, but there are still enough risks to keep us on the sidelines.
In case the link doesn't work, here is the whole article. PDL is the last review.
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September 18, 2021 4:00 am by Investors’ Chronicle reporters BUY: Accesso Technology Group (ACSO) With pandemic restrictions easing, Accesso is taking advantage of new customer behaviour, writes Christopher Akers.
Aim-listed Accesso Technology Group has recorded robust revenue and profit margin figures in its interim results to June 30. After a disappointing 2020, when the group was forced to focus on operational resilience and cost savings rather than growth due to the impact of the pandemic on the business, it appears as if the tide has turned.
The group, which provides software centred around virtual queuing and ticketing, enjoyed an operating profit margin of over 3 per cent compared with both an interim and full-year loss for 2020. Ebitda, a key group metric, exceeded analyst expectations as a record $9.8m (£7.2m) was recorded after a negative $10.4m last year.
Group revenue of $50.7m was an increase of 106 per cent, shooting back to pre-pandemic levels. The Accesso Passport division, which facilitates virtual sales, was a standout performer by posting a 40 per cent or $6.3m revenue increase on the same period in 2019.
Chief executive Steve Brown said that a combination of high labour costs for business and continuing capacity and social distancing measures helped drive revenue. Accesso’s software allows clients to reduce labour costs (as tasks can be completed virtually) and its operating model is now well placed to serve its clients in an uncertain pandemic environment. He also noted that attendance at client sites, such as amusement parks, is sitting at about 85 to 90 per cent of 2019 levels which indicates further revenue and growth potential.
UK revenue notably struggled, up by $2.6m from last year but still down by $7.1m from 2019. This was due to pandemic restrictions which closed client sites such as West End theatres — recovery in this revenue stream is expected as events start to be held once more. Costs are estimated to increase by about 8-12 per cent by the end of the year, but this is simply a recalibration to a “normal” cost base rather than an unusual increase.
Performance for the year is expected to at least match pre-pandemic levels. The July 2021 revenue figures for passport and virtual queuing are 51 per cent up against July 2019, and a confident management expanded a share awards scheme to all staff. Analysts expect revenue and profitability to increase further due to changes in customer habits and the increasing shift to ecommerce. Broker Numis has an updated Ebitda forecast of $18.6m for 2022.
HOLD: Pendragon (PDG) Car dealership Pendragon appears to be heading in the right direction after a sharp turnaround last year, writes Micha
I keep asking the same question. This company is probably one of the few making loads of money and debt free but share price doesn't reflect this. All I know is that I got the timing on this one really wrong and now down by over 1k.