Coventry Group Ltd (ASX:CYG) Announces H1 FY25 Half Year Results
Financial Performance
Coventry Group Ltd reported group sales of $185.2 million for H1 FY25, a slight decrease from $185.3 million in H1 FY24. The group’s underlying EBITDA increased by 0.8% to $9.9 million compared to $9.8 million in the previous year. Underlying EBIT remained steady at $7.8 million.
Net Profit and Debt Position
The statutory net loss for the half was $0.7 million, worsened from a loss of $0.4 million in H1 FY24, primarily due to $5.2 million in ERP project costs. Net debt at 31 December 2024 stood at $52.9 million, up from $47.3 million at 30 June 2024, influenced by delayed customer payments and ERP expenses.
Divisional Performance
Trade Distribution sales increased by 3.9% to $111.9 million with EBITDA rising by 19% to $10.1 million. In contrast, Fluid Systems sales fell by 5.4% to $73.3 million, and EBITDA decreased by 23% to $7.2 million.
Outlook
The Group aims to focus on profitable sales growth through new branch openings, refurbishments, and targeted marketing, leveraging its fully operational ERP platform. Coventery Group will continue to provide quarterly trading updates.
Executive Comments
Robert Bulluss, Group CEO and Managing Director, stated, “The FY25 first half result was delivered against a backdrop of difficult economic conditions in some jurisdictions and the distraction of the ERP upgrade go-lives across 73 branches. Initiatives to grow EBITDA % to Sales to 10% in the medium term continue to deliver positive results with sustained improvement in gross margins and diligent cost control. Given the Group’s low market shares and its strong value proposition, we expect sales growth can be delivered even in tougher economic conditions. To that end, and with the distraction of the ERP upgrade largely behind us, our teams are focussing their full attention on profitable sales growth in calendar year 2025. Pleasingly, our recent acquisition, Steelmasters, has continued to perform to expectations. Our organic growth continues with the FY24 new stores performing strongly and plans to continue organic growth through new stores (5), store makeovers (4-5) and store relocations (4-5) in FY25 progressing well”.
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