25/1/21

SUMMARY:

~ October + November 2020 consolidated revenue of A$6.2 million; combined EBITDA of - A$724k, a 45% improvement over the prior corresponding period

~ November 2020 recorded positive EBITDA of A$16k despite ongoing supply shortages

~Consolidated margins were strong at 36% over the period

~As at 30 November 2020, the Company had trade receivables of A$5.1 million, inventories and work-in-progress of A$5.8 million, and cash on hand of A$7.3 million

~All of the Company’s worldwide holiday inventory sold into the channel for Black Friday/Cyber Monday + holiday was sold through                                                                       ~ 90% of the Company’s holiday inventory at Best Buy was sold over the Black Friday / Cyber Monday weekend

~ Following the completion of the PFG finance arrangements, the Company currently has more product (by $ value) ordered/in manufacturing, than it had for all of 2020.

.We were delighted to recently report (refer to the ASX announcement dated 4 January 2021) that Buddy has secured new financing arrangements that have immediately removed the deeply impactful commercial trading terms and operational restraints (such as manufacturer exclusivity, manufacturing trade terms, etc…) that so limited the Company’s ability to deliver superior results in 2020.

Disc: I hold in Strawman & TRW

Buddy Announces H2 FY2021 Revenue + Earnings Guidance

SUMMARY

~ Buddy announces expected results for H2 FY2021

      - Revenue in the range of A$24 million to A$28 million

      - Positive adjusted EBITDA for the half

~ Results for H2 FY2021 are anticipated to more than double the (unaudited) revenues for the prior corresponding period (H2 FY2020 - A$10.8 million)

~ The revenue and EBITDA guidance for H2 FY2021 are derived from manufacturing orders placed, contracted and paid for (in part or in full) and do not include any expected orders not yet placed. 

Disc: I hold

I had previously held this company as it has gone through many transformations. So it was on my watchlist. I bought a small holding back in May after a few good announcements & starting to work out their debt.