Pretty decent results in a business environment made difficult by restrictions arising from the Covid-19 pandemic, it seems to me.
key takeouts for me were the 24% on year jump in revenue to $46.6m, helped hugely by a 73% lift in revenue from the Baltec unit to $19.2m and 8.5% growth for Tomlinson Energy Services unit to $22.4m.
this revenue growth underpinned NPAT of $1.7m, a significant swing from a loss of $1.2m previously. Debt was down.
Commsec quoted a market cap of $25.8m, just 0.55x of last fiscal year’s revenue.
looking ahead EGL expects further growth, with Baltec holding more than $10m work in hand at June 30.
the SP rose 6.5% or 0.6 cent to 9.9c.
a key driver for the SP in coming months could be news of the results of a full commercial trial now underway of EGL’s technology to remove PFAS from water. some holders see what might otherwise be a boring engineering company having potential major SP upside from the PFAS tech.
if the trial is successful it could provide “significant opportunity” for EGL, it said.
the company expects results from the trial this calendar half.
the result and outlook should at least prove share price supportive.
EGL Price at posting:
9.9¢ Sentiment: Hold Disclosure: Held
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