Matrix Composites & Engineering Ltd

ASX:MCE

Matrix Composites & Engineering Ltd

ASX:MCE
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$0.250 (0%)
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#133
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Forum Topics MCE MCE Feb 2024 Preso

Pinned straw:
BkrDzn
Added 10 months ago

MCE with a preso out from the BP Unearthed Conference. Key takeaways for me:

  • FY24 revenue upgraded to $85m+ from $80m+ and firmer working around continued profitability inflection, although as with FY23, skewed to the second half.
  • Also good to see advanced materials div showing some tangible progress with revenues to about double YoY to $5m+.
  • Pipeline commentary remains positive (inline with sector commentary more broadly) despite more moderate oil price environment and sector sentiments. Offshore wind commentary seems cooler but that is not surprising given the issues facing that sector but not a thesis breaker.
  • Cash $23.2m at Dec 23 end, $20m June 23, and other reporting was $23.5m Aug 23 and $24.4m in Oct 23 so seems they're keeping working capital tight as growth ramps.


https://announcements.asx.com.au/asxpdf/20240212/pdf/0609pg5xnxcdyj.pdf
UlladullaDave
Added 10 months ago

The bottleneck in risers that's been around the last year or so should be clearing in H2 so not unexpected that they expect a stronger second half and hopefully into FY25. Wind and some of their other tech is a nice 5+ year goal, but I think for the thesis to work from here it has to be all about the offshore capex cycle.


The cash level will bob depending on order flow – a lot of the heavy investment into WC was evident in the FY23 accounts. From memory they had over $24m in cash at the AGM. Agree though, nice to see they are keeping things tight in that regard. They cop a lot of flak about being poorly run, but I reckon if you got through the last downturn without going bust you at least get a pass.

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