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  1. #1
    percy
    Join Date
    Oct 2009
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    christchurch
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    17,222

    Default ACF.Acrow Formwork and Construction Services LTd

    They provide formwork and scaffold equipment [including rental] to the construction industry.
    Current market cap at 33 cents per share is $72.10 mil.
    They are profitable and paying a divie.
    Outlook is for an increase in EBITDA of between 13.33% and 16.6%.
    Strong balance sheet with only $14.6 mil debt meanns gearing ratio of just 20%.
    https://stocknessmonster.com/announc....asx-6A992758/
    Last edited by percy; 01-09-2020 at 09:26 AM.

  2. #2
    Advanced Member
    Join Date
    Dec 2001
    Location
    Wellington, , New Zealand.
    Posts
    1,701

    Default

    Also in New Zealand. Subsidiary or separate entity?

  3. #3
    percy
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    Default

    Quote Originally Posted by artemis View Post
    Also in New Zealand. Subsidiary or separate entity?
    Looks to be an unrelated separate entity.

  4. #4
    Senior Member
    Join Date
    Jun 2008
    Posts
    880

    Default

    Started receiving dividends from Acrow a couple of years ago which I first thought was spam... Turns out they arose out of the shell of a disaster I had successfully forgotten... Noble Mines Group (NMG).

    Had a look at their business business earlier in the year, decided it was interesting and likely to benefit from increased government infrastructure spending in Aus/NZ by post COVID. Was going to buy some more under 20 cents but got distracted...

    The registrar they use is pretty cool, now reinvesting my few cents
    Last edited by Jaa; 08-09-2020 at 08:55 PM.

  5. #5
    percy
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    Oct 2009
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    christchurch
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    Default

    "Late Put Through,Crossed" 2,232,236 shares at 33 cents.Total amount $736,637.

  6. #6
    percy
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    Oct 2009
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    christchurch
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    Default

    This article appeared in Small Caps weekly wrap.

    Acrow Formwork and Construction Services (ASX: ACF)
    What’s not so boring for investors is the ability of Acrow Formwork and Construction Services to thrive in the troubled times.

    This is partly the result of a timely switch from the residential sector to engineered formwork for mega infrastructure projects.

    Acrow reported a 22% net sales surge to $87 million for the full year, with EBITDA climbing 30% to $15 million.

    Notably, June half EBITDA doubled to $9.5 million, while revenue surged 39% to $49 million.

    This is because client projects such as the Sydney and Melbourne metro projects, Snowy Hydro 2 and Brisbane’s Queen’s Wharf forged ahead with minimal disruption.

    With a record pipeline of new jobs, management is “comfortable” with broker forecasts of ebitda of $17-17.5 million for the current year.

    The munificent board upped final dividend to $0.0105 a share from $0.01 previously, taking the full year payout to $0.0175 (a yield of around 5%).
    Last edited by percy; 12-09-2020 at 12:13 PM.

  7. #7
    Member
    Join Date
    Dec 2019
    Location
    South of the Bombays
    Posts
    287

    Default

    Revenue and EBITDA were boosted by the acquisition of Uni-span effective 31 October 2019, so most of this growth (particularly in the second half) due to acquisitions rather than organic growth.

    EPS (excluding significant acquisition costs) in 2020 were a healthy 4.62 cps, however they were only up 6% of FY19. Share price is an attractive PE multiple of these underlying earnings amount.

    However, i’m concerned by Note 23 of the FY20 financial statements which details the consideration payable for the acquisition of Uni-span. The note states “a contingent payment of up to $4,250,000 cash, provided the Acrow groups EBITDA exceeds $18,000,000 for the FY21 Financial Year. At reporting date the contingent payment is estimated to be nil”.

    Underlying EBITDA for FY20 was just north of $15m, which included 8 months of Uni-span. Second half EBITDA was $9.5m. So the directors are saying they don’t expect much EBITDA improvement in FY21 (adjusted for a full year of Uni-span) however if they do manage to improve profitability a bit, it’s going to cost shareholders $4.25m in cash. Therefore if EBITDA improves a bit, shareholders could loose much more than the EBITDA improvement. Worse still, the $4.25m will need to be funded out of net profit after tax so shareholders could be much worse off. Who negotiates deals like this?
    Last edited by Southern Lad; 12-09-2020 at 12:58 PM.

  8. #8
    percy
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    christchurch
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    Default

    No incentive to beat brokers' forecast.So the $17 to $17.5mil EBITDA looks likely.

  9. #9
    Member
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    Dec 2019
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    South of the Bombays
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    Default

    Quote Originally Posted by percy View Post
    No incentive to beat brokers' forecast.So the $17 to $17.5mil EBITDA looks likely.
    Unless management bonuses are based on EBITDA!

  10. #10
    percy
    Join Date
    Oct 2009
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    christchurch
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    Default

    Quote Originally Posted by Southern Lad View Post
    Unless management bonuses are based on EBITDA!
    LOL.Yes that could be fun.

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