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Source: Advanced Braking Technology announcement
WANGARA, Australia — Advanced Braking Technology Ltd (ABT), the preeminent supplier of fail-safe brakes for commercial vehicles in Australia, finished fiscal year 2021 (FY21) with a 15-percent increase in revenues and 263-percent increase in net profits when compared to FY20.
FY21 Highlights
- Total Revenue of $10.45m, up 15 percent on previous corresponding period (pcp)
- Operating Sales increased to $9.70m, up 16 percent on pcp with product sales margins of 46 percent stable on pcp
- Net Profit result of $0.62m (FY20: $0.17m) and EBITDA result of $0.91m (FY20: $0.65m), a 263 percent and 40 percent improvement respectively
- Improved cash position of $1.41m (FY20: $0.52m) delivering positive operating cashflow of $1.2m
- Ongoing resilience in business operations delivers record financial year results despite global impact of COVID-19
- Participated in both the EuroBrake 2021 virtual conference and Land Forces 2021 conference
- Focused on identifying organic and inorganic growth opportunities to drive scale and revenue diversification
John Annand, Chief Executive Officer, stated, “We revised our strategy and structure nearly two years ago and continue to demonstrate the success of these initiatives in our results at each reporting period. We are pleased, once more, to deliver growth in our key metrics and assess how we can deliver further growth in the business.
Related post:
ABT Licenses a Braking Solution for Australian Defense Program
The delivery of our organic growth strategy is evidenced in our numbers. We are pleased with the progress made to date to increase sales, control costs and maintain margins across our core product portfolio. As previously communicated, we also continue to assess inorganic growth opportunities that can accelerate our growth and broaden our product offering.”
| SUMMARY FINANCIAL RESULTS | FY21 | FY20 | Change |
| Total Revenue | $10.45m | $9.08m | 15 percent |
| Operating Revenue | $9.70m | $8.35m | 16 percent |
| Gross Margin | 46.3 percent | 46.3 percent | – |
| Total Expenses | $4.62m | $4.43m | 4 percent |
| EBITDA | $0.91m | $0.65m | 40 percent |
| Profit / (Loss) for the period | $0.62m | $0.17m | 263 percent |
| Operating cashflow | $1.21m | $0.24m | 403 percent |
| Cash and cash equivalents | $1.41m | $0.52m | 173 percent |
Financial Update
ABT continues to demonstrate demand for its core products, FailSafe and Terra Dura, with $9.7m in operating revenue, driving a 15 percent uplift in total revenue to $10.45m. The sale of braking systems accounted for approximately 55 percent of operating revenue, with the remainder comprising of engineering design services, installation services and a strong proportion from the ongoing sale of spares and consumables (40 percent).
Product sales margins were stable during FY21, with an FY21 product margin and gross margin result of 46.3 percent. The Company has continued to deliver improvements in the EBITDA result, at $0.91m for the year compared to $0.65m for FY20, as a result of cost management initiatives. A focus on driving improvements in sales and cost management, alongside stable gross margins, has resulted in a FY21 net profit of $0.62m (FY20: $0.17m).
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ABT continues to prudently manage the cash position, with $1.41m in cash on hand as at 30 June 2021 (31 December 2020: $1.48m). These funds remain broadly stable whilst the Company continues to invest in operations, including in-house assembly, manufacturing and product innovation. During FY21 the Company was awarded a Defence Global Competitiveness Grant of up to $0.24m, of which $0.096m was received in FY21, with the balance of $0.144m expected to be received in the first half of FY22.
Over FY21, ABT received $0.105m in COVID-19 related financial assistance payments, provided by both the Federal and Western Australian governments.
The entire announcement can be viewed by clicking HERE.
