SMN (ASX) Ann: Appendix 4C and Quarterly Update

Originally posted by longreach ↑

There's been a lot of highly frustrated SMN shareholders venting their feelings lately on HC, as well as other non-holders who are happy to figuratively kick the hell out of the company and its management. Whilst there may not be a connection, it seems to be reflected in the dismal share price.

But if you sit back and consider the actual status of the company, and where it's at, actually the company has never been in as good a position.

Just consider this:
1. The chaos of the boardroom squabble is over.
A relatively new board is in charge, with 2 new aviation-experienced board members now appointed, and an executive chairman who has proven himself to be an excellent communicator (both during and now AFTER the squabble).

2. Aviation industry outlook and attitude towards structural health monitoring has built considerable momentum in past months.

3. Recent SMN accomplishments as summarised in the last quarterly:
"Highlights
• Wholly owned subsidiary Anodyne Electrics Manufacturing (AEM) recorded a strong financial performance for the reporting period with gross revenue for the December quarter of $5.36m versus $5.05m the previous quarter, up 6% - and 58% higher than the December quarter in the prior year.
• Gross revenue for the year to date is currently $10.40m versus $6.70m on the year prior, up 55%.
• Forward orders for the March quarter are currently sitting at $5.33m indicating continued growth in the months ahead.
• NEBITDA for the year to date is $1.86m versus $1.42m, up 31% on the year prior.
• AEM announced that it had secured new credit and financing facilities with the Royal Bank of Canada (RBC) to facilitate the Company’s growth plans moving forward.
• The Company achieved its first commercial sales of its patented CVMTM technology to Delta Airlines, the world’s largest commercial carrier.
• The Company’s APB Certification Program continues to remain on track for Q2 approval by the Federal Aviation Administration (FAA)."
"Delta Airlines has now provided a draft schedule of the remaining 737 maintenance schedules for calendar year 2023 will be the basis for subsequent sensor kit purchase orders.
"The Company announced the completion of compression testing at Boeing’s US based laboratory for the 737 APB application in January and provided an updated timeline for submissions and anticipated approvals.

4. SMN Recent Announcement re CVM APB Certification:
"...Delta Airlines continues to support SMS throughout this certification program, this effort is expected to result in a significant commercial revenue generation for the Company moving forward."
"We then expect FAA Approval of Deliverables by 15 April 2023 and the Service Bulletin Release from the FAA by 21 April 2023."
"We are now engaging with a number of other priority clients for this application and look forward to providing regular updates in the coming weeks and months.
“I...n addition, we are finalising a sales program targeting operators of Airbus A320s for multiple simultaneous installations, following some very compelling evidence of the value these can create for operators we commissioned late 2022."

It seems to me that the company is knocking on the door of future success, and yet at this penultimate stage frustrated shareholders are selling out?
Strange?

Expand

Great post @longreach, and totally agree with your points. The last four years of waiting for further testing, approvals etc. from FAA have most certainly altered the company and shareholders timeline’s for commercial success. It is natural for fatigue to set in.

My strategy for what it’s worth, accumulate below 0.38c (reward v risk seems very well balanced at that price). Sell a portion at a time where I think the SP has peaked after approvals and try and free carry from there on in.
However, I totally understand how people have been stung by opportunity cost along the way.

Best of luck to all…..not long before we all find out if this was a slug after all, or a nicely disguised caterpillar that turns into a beautiful butterfly.

No.	Vol.	Price($)
1	9999	37.5¢

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9999

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38.5¢	9374	1

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9374

No.	Vol.	Price($)
1	9999	0.375
1	7000	0.365
2	3121	0.360
1	14084	0.355
1	1428	0.350

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9999

0.375

7000

0.365

3121

0.360

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0.355

1428

0.350

Price($)	Vol.	No.
0.385	9374	1
0.390	10000	1
0.395	58053	1
0.400	20500	2
0.410	20000	1

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0.385

9374

0.390

10000

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58053

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0.410

20000

(20min delay)
Last 38.5¢		Change 0.010(2.67%)		Mkt cap ! $52.67M

Open	High	Low	Value	Volume
38.0¢	38.5¢	38.0¢	$3.997K	10.38K

Great post @longreach, and totally agree with your points. The...

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