8 ASX small and micro-cap Industrial stocks on the move
Decmil Group Limited (ASX: DCG)
DCG shares rallied in April, as the Company provided a financial update, including projecting a strong pipeline of $205 million. DCG primarily deals in four sectors: infrastructure, resources, construction, and energy. All four sectors have been witnessing strong demand both locally and globally, which is leading to significant contract flow for DCG. The boom in exports, especially in commodities, has benefited DCG and this is expected to continue for the foreseeable future.
The company also provided an update on its YTD revenue, which stood at $385 million, and projected that FY23 revenue will grow by 30% to $470-$500 million. Management is also in the final negotiation stage of a further $300 million in contracts and expects these contracts will be finalised soon. Shares could see a further rally if results continue to come in strong through the fiscal year.
Rob Heale CEO - “Importantly, we are now translating this strong revenue into enhanced earnings and profitability. We fully expect Decmil’s EBITDA will continue to improve now that legacy disputes have been settled; loss-making projects have been completed; we are focused on profitable contracts over revenue; and a robust tender pipeline is available to capitalise on our near-term and medium-term horizon.”
EML shares were on the move in April, as the Company announced new leadership to replace Ms. Emma Shand as CEO. The incoming interim CEO, Kevin Murphy, formerly managing director at Bank of Ireland’s card division, is expected to bring substantial experience, especially in the UK and EU markets in which EML is expecting to advance its payment solutions.
EML has significant potential as it provides a range of fintech solutions, which includes digital wallets, card funding, and FX solutions. EML also provides open banking solutions through its Nuapay product. Overall, the fintech industry is witnessing significant changes as customers look to alternative solutions to traditional banking. EML provides a range of solutions including everything from neobanking and crypto integration services, B2B payments, insurance claims, buy now pay later solutions, and solutions for corporate and government clients.
Helloworld Travel Limited (ASX: HLO)
Financial results continued to assure investors, who continued to invest in the stock, during the latest quarter as revenue surged to $73 million, up 151% on a total transaction value of $1.2 billion, which increased by 209%. Meanwhile, EBITDA came in at $12.6 million at a margin of 17.6%. After-tax profit came in at $1.6 million. The low profitability can be attributed to depreciation costs, which continue to remain high.
CTT shares continued their positive momentum in April with the share price up 192.4% over the 12 months to 30 April 2023. The Company has seen significant gross revenue growth, with the Company reporting gross revenue of $242 million for the 1H’FY23, up 57% on the pcp, and sales revenue up 57%, to $187.7 million. The average customer order value also increased to $759, up 7% YoY. The Company posted a positive EBITDA of $16.7 million with a margin of 9%. The Company has been increasingly benefitting from global expansion, and the localisation strategy, with the introduction of local languages and improved local targeting. The investments are clearly paying off with the number of customers surging to 313,00 in the 1H’FY23.
Lycopodium Limited (ASX: LYL)
LYL has been rallying through recent months as the commodities sector continues to see strong demand. With operations across the globe, but with a focus on Africa and Australia, LYL has been witnessing significant inflow of new projects, especially related to gold and other mining. As of the last few quarters the Company has witnessed significant increase in new projects including projects in Burkina Faso, Botswana, Namibia, Ghana, Cote d’Ivoire, and Western Australia.
Structural Monitoring System Plc (ASX: SMN)
Beyond Delta Airlines, a successful integration of the sensor kits means that there is a significant global market from which the Company could benefit. The contract for the 21 Delta aircrafts comes in around $7 million. Delta is progressing to install the sensors on the remainder of their relevant fleet of 71 aircraft at a rate of approximately four aircraft per quarter.
In it’s March quarterly update, the Company reported gross revenue for the year to date of $16.27 million, up 47% on the pcp, with forward orders for the June quarter currently at $4.81 million, indicating continued growth in the months ahead.
ODA shares were rallying late in the month as the Company’s financials came in better than expected with significantly positive results for the 3Q’FY23. Customer receipts increased by 28% to $16.6 million, meanwhile total income increased by 50% to $5.7 million and free cash flow increased by 240% to $1 million.
Megaport Limited (ASX: MP1)
The Company’s quarterly results came in strong in 3Q’FY23 with the Company witnessing a growth of customers from 39 to 72 quarter-on-quarter. Meanwhile, YoY customers declined from 256 to 168. Despite the YoY decline, revenue increased 38% YoY from $79 million to $108 million. The Company has indicated that the sales slowdown, especially in total services, is directly related to issues with its sales teams.
This article was written by Parth Pala.
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