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Last edited 2 years ago
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Performance (48m)
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#CEO steps down
stale
Added 2 years ago

On 13 January the company announced that the CEO, John Annand would step down effective immediately by mutual agreement.  It is always a red flag when there is a sudden and immediate resignation of a CEO or CFO no matter what reason is given.

When the 2Q22 4C quarterly report was released, cash receipts were down for the first time in over a year (-9%) though it was coming off a +31% increase in 2Q21.

The company has a market cap of only $12m, has $1.57m in cash and is marginally free cash flow positive.  The share price has been supported by the major shareholder, Keith Knowles who has been steadily increasing his holding over the last few years to over 31% of the company.

It is hard to know why the CEO John Annand stepped down.  Perhaps the growth in revenue was not strong enough?

Although the company is cheap and better than most microcaps in that it is free cash flow positive, the resignation of the CEO has increased the risk and there are probably better opportunities elsewhere as this is a very illiquid stock and hard to get in and out of.



#Profitable Growing Nanocap
stale
Added 3 years ago

ABV is a supplier of specialist fail-safe brakes for commercial vehicles in Australia. Revenues have been increasing to $9.1m and it reached profitability in FY20. Keith Knowles is the largest holder and has increased his holding from 12.25% in March 2019 to 27% currently.  The company’s performance has been solid since the appointment of John Annand as CEO in Dec 2018.  Previous to that the company had suffered from sales which never met up to expectations.

In its latest 4C quarterly report, ABV reported record June operating sales of $1.16m.  Operating sales in FY21 increased to $9.7m from $8.35m in FY20 an increase of +16%.

The company is only just profitable in FY21 at $0.6m but this is an improvement on previous years.

Cash receipts for the 12 months to 30 June 21 was $10.2m; with operating cash flow of $1.2m. They ended the year with cash of $1.4m.

With a market cap of only $15m, ABV is a nanocap, which if it continues to deliver increased sales and profits in FY22, looks cheap at 1.5x cash receipts; Free Cash Flow positive and profitable.  There has been sales growth over the last 2 years since FY19 of between 10-20%.  There is a substantial holder holding 27%, who keeps on increasing their holding at around $0.04 which has been providing a floor on the share price so far.

#Chart
stale
Added 3 years ago

$ABV breaking out +16.28% today at $0.05. Closed at its highs.

ABV is a supplier of specialist fail-safe brakes for commercial vehicles in Australia. Revenues have been increasing to $9.1m and it reached profitability in FY20. Keith Knowles is the largest holder and has increased his holding from 12.25% in March 2019 to 23.85 currently.  The company’s performance has been solid since the appointment of John Annand as CEO in Dec 2018.  Previous to that the company had suffered from sales which never met up to expectations.

#Substantial Holder Increase
stale
Added 3 years ago

9 Feb 21: Keith Knowles increases his holding in ABV (Advanced Bracking Technology) from  23.80% from 22.33% @ 3.9c.  Has been consistently increasing his holding from 7.12% at the beginning of 2019.