The acquisition of Tomlinson (TES) has been a godsend for shareholders. The acquisition has underpinned the company at a time of disruption to the other businesses. If the forecast is anywhere near accurate, FY21 looks very positive. I have pieced together the available information which is captured in the table below.
What is interesting is that for the five and a half months of ownership of TES in 2019, the acquisition delivered $8 million of revenue and an EBIT of $1 million. The EBIT looks a little surprising given the history that was presented in the acquisition presentation. Also the EBIT for the FY20 year is forecast at around $1 million but impressively increases to $1.4 - $1.8 million in the current year FY21.
The 2019 revenue annualised comes out at $17 million which looks like it took a small hit from the disruption of being in receivership. But the future looks good and the discussion in the most recent update relating to a reengineered, reduced cost boiler may bode well for product sales.
With TAPC, Baltec and Tomlinson all looking like they will have close to a record year based on the information available, I will be looking for confirmation at the results announcement and the AGM.
EGL Price at posting:
2.6¢ Sentiment: Buy Disclosure: Held
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