DGL - DGL Group

[sampson]

The other day I compiled a list of the top holdings of a handful of asx microcap fund managers and noticed that quite a few hold this stock, I haven't looked any deeper at it though.

[Sideshow Bob]

Reports next Tuesday....

[Pegasus2000]

Are the people speculating FOMO or sense/smell from inside leak before the reports?
Or just be wise to wait for the report then make decision?

[Nor]

Are the people speculating FOMO or sense/smell from inside leak before the reports?
Or just be wise to wait for the report then make decision?

Would have to be a spectacular result to justify these levels. Unlikely, hasn't been enough time. I wouldn't buy more at these levels but nor will I sell.

[Louloubell]

I'm a happy holder, having bought in at $1.55 (recently). The fundamentals of this company are difficult to establish considering their recent listing and acquisitions. I would sit on the sideline as the facts are likely to be less rosy than the expectations. DYOR, but these are my 2 cents.

[Sideshow Bob]

Looks like a good result - better than forecast....

FY21 results exceeds prospectus forecast

31/8/2021, 8:30 amGENERALASX RELEASE

31 August 2021

Strong earnings growth
FY21 results exceed prospectus forecasts

DGL Group (DGL) (ASXGL, NSXGC), today announced its results for the year ended 30 June 2021. Pro-forma net profit after tax was $11.3 million, an increase of 134.6% on the prior year, and ahead of prospectus forecasts. Statutory net profit after tax was $47.2 million. Please refer to the appendix for a reconciliation of proforma net profit after tax and statutory net profit after tax.

• Successful completion of Initial Public Offering on 24 May 2021, raising $100.0 million.
• Strong growth in revenue, EBITDA, EBIT and NPAT, with results also exceeding prospectus forecasts:
o Pro-forma sales revenue of $196 million up 9% on pcp and 3% greater than prospectus forecast.
o Pro-forma EBITDA of $28.1 million up 47% on pcp and 8% greater than prospectus forecast.
o Pro-forma EBIT of $16.8 million up 124% on pcp and 9% greater than prospectus forecast.
o Pro-forma NPAT of $11.3 million up 135% on pcp and 19% greater than prospectus forecast.
• Solid revenue growth across all three divisions compared to FY20:
o Chemical Manufacturing division increased 3% to $97.3 million1.
o Warehousing and Distribution division increased 48% to $40.9 million1.
o Environmental Solutions division increased 2% to $63.4 million1.
• Strong balance sheet, with net cash of $43.8 million.
• Successful integration of the Chem Pack manufacturing business, acquired in January 2021, to expand the Chemical Manufacturing division’s manufacturing capabilities.
• Delivered on strategic initiatives outlined in prospectus including integration, expansion of services, cross selling between divisions.
• Announced several successful business and property acquisitions since listing. Expect to exceed prospectus forecast for FY22 of pro-forma NPAT of $10.4 million and pro-forma EBITDA of $29 million, which does not include the revenue and profit contribution from recently acquired businesses, Label’s Connect and Opal Australasia and favourable trading conditions experienced to date.

Note 1: The divisional revenue numbers include intercompany revenue of $3.7 million in FY20 and $4.9 million in FY21.
DGL Group (DGL) (ASXGL, NSXGC), today announced its results for the year ending 30 June 2021. Pro-forma net profit after tax was $11.3 million, an increase of 134.6% on the prior year, and ahead of prospectus forecasts. Statutory net profit after tax was $47.2 million. See appendix for reconciliation of proforma net profit after tax and statutory net profit after tax.

Commenting on the performance, DGL Founder and CEO, Simon Henry, said:

“This year has been a transformative year for DGL, listing on the ASX and welcoming new shareholders to our business, while raising $100 million to fund growth initiatives into the future.

“I am very pleased we have been able to deliver on our initial promises, as set out in the prospectus, both at an operational level and financial level. Pro-forma net profit after tax was 19.4% higher than we had originally estimated in our prospectus.

“The outstanding results were a result of the successful integration of Chem Pack, greater demand for our products from the agriculture sector, as well as the commissioning, ahead of schedule, of our lead smelter plant in Victoria.

“I’d like to recognise each and every one of our employees for their contribution to delivering these great financial and operational results.
“We are steadfast in executing our strategy to become the leading, full service, chemicals business in the region. This includes having a broad geographic spread, with proximity to key sectors that we service. Since IPO, we have acquired a number of sites and facilities in New Zealand and Australia providing development opportunities that will bolster our warehousing, distribution and chemicals manufacturing capabilities in FY22 so that we can meet the growing capacity the industry requires.
“We will continue to use funds from the IPO, as well as the strong cash generation of our business, to pursue growth opportunities. The business is well supported by a strong balance sheet and an experienced and highly motivated management team with a shared commitment to growth.

“The diverse industries we service - agriculture, mining, construction and infrastructure – have positive long-term outlooks. We are an essential business serving these critical sectors.”

Please click on the PDF file on the bottom of this page for the complete media release concerning the FY21 results.

[Pegasus2000]

Bought a few. Hopefully the earning EPS will continue.

[Louloubell]

I didn't know what to make of the result, but the market does!!!

[Pegasus2000]

total share number : 257,000,000
total assets 195,270,000
so share value is 0.7598. Current share price 2.90.

Is their EPS calculation correct?

Basic earnings per share (cents) 78 cents

My calculation is 47165000 ÷ 257000000 = 0.18 = 18 cents

[Snow Leopard]

The real EPS is about 4.1c and the NTA near 62cps.

The headline result has a massive $40M one-off in it.

Disc: based on quick glance at presentation, eps on 275M shares at FY (not weighted)

PS numbers are in $AU.