AVJennings Limited - Preliminary Final Report for FY24
AVJENNINGS LIMITED (AVJ) Share Update August 2024 Tuesday 27th
AVJennings Limited Reports Significant Drop in Profit Despite Revenue Growth
AVJennings Limited (ASX: AVJ) has released its preliminary final report for the year ended 30 June 2024, revealing a substantial decline in profit despite an increase in revenue.
Instant Summary:
- Revenue increased by 11.8% to $319.7 million.
- Profit after tax plummeted by 95.7% to $1.02 million.
- Net Tangible Assets (NTA) decreased from 104.4 cents per share to 81.4 cents per share.
- Dividends remain unchanged at 1.10 cents per share.
Financial Performance
AVJennings Limited reported a notable increase in revenue for the fiscal year ending 30 June 2024. The company's revenue grew by 11.8%, reaching $319.7 million compared to $285.9 million in the previous year. This growth is attributed to higher sales volumes and improved market conditions.
However, despite the revenue growth, the company experienced a dramatic decline in profit after tax. The profit after tax for FY24 was $1.02 million, a staggering 95.7% decrease from the $24.04 million reported in FY23. This significant drop in profit is a cause for concern among investors and analysts alike.
Net Tangible Assets
The Net Tangible Assets (NTA) per share also saw a decline, dropping from 104.4 cents per share in FY23 to 81.4 cents per share in FY24. This decrease in NTA reflects the overall financial strain the company is experiencing despite its revenue growth.
Dividends
In terms of dividends, AVJennings Limited has maintained its interim and final dividends at 1.10 cents per share, consistent with the previous year's payout. This decision indicates the company's commitment to providing returns to its shareholders, even in the face of reduced profitability.
The significant drop in profit despite revenue growth is likely to raise concerns among investors about the company's cost management and overall financial health. The decrease in NTA per share further underscores the challenges AVJennings is facing. Investors may react negatively to these results, potentially leading to a decline in the company's stock price.
Investor Reaction:
Analysts are expected to scrutinize the factors contributing to the drastic drop in profit. While the revenue growth is a positive sign, the inability to translate this into higher profitability will likely lead to mixed reactions. Some investors may remain cautious, while others might look for strategic changes in the company's operations.
Conclusion:
Investors should keep a close eye on AVJennings Limited's future announcements and strategic plans to address the decline in profitability. Monitoring the company's cost management efforts and market conditions will be crucial in assessing the potential long-term impacts on their portfolios.