THE GOOD

PWR Holdings

Net profit: $13.049 million (down 8.1%)

Revenue: $65.7m (up 0.5%)

Ormeau-based PWR Holdings – which makes cooling systems for the fastest vehicles on Earth – may have seen its net profit shrink 8.1 per cent but it was still one of the standout results during a difficult business climate.

The company is starting to reap the benefits of its strategy to focus on diverse revenue streams such as the emerging technology and OEM (original equipment manufacturers) sectors which bodes well for the future.

WHY PWR EXPECTS BUSINESS TO BOOM IS UNITED STATES

Sunland

Net profit: $2.4m (down 86%)

Revenue: $167.2m (down 41%)

The company’s net profit was hit hard by $13.9m in after-tax adjustments, which included scrapping “obsolete” work done by designers for projects such as Mariners Cove.

That project was sold off during the year and Sunland has a number of other assets on the chopping block, including a site in Labrador where it planned to build a tower.
Sunland is taking a cautious approach to projects with a focus on low-rise apartment towers — with the notable exception of 272 Hedges Ave — rather than larger-scale developments.

A sound approach to capital management saw it close out the year with $13.1m in cash and $139.9m in undrawn working capital.

SUNLAND FOUNDER AWARDED KEYS TO CITY

Eureka

Net profit: $8.1m (up 19%)

Revenue: $24.8m (up 6.7%)

Affordable retiree rental accommodation provider Eureka Group was surprisingly one of the year’s strongest performers.

The Southport-based company managed to acquire a 124-unit village in Bundaberg and offload 27 of its Terranora units for $6.39m (or $1.03m profit) during the 12 months to June 30.

Last year the company said it would hit the reset button following a disastrous foray into Couran Cove.
That appears to be exactly what has happened with Eureka once again on a growth trajectory.

It now has 2147 units across 30 owned and eight managed villages.

EUREKA RECEIVES APPROVAL FOR STRATA-TITLING OF TERRANORA VILLAGE

Retail Food Group

Net loss: $4m (down 97%)

Revenue: $264m (down 24.4%)

Executive chairman Peter George has worked hard to transform the company’s financial situation after leading a successful recapitalisation to trim its $260m-plus mountain of debt to just $20.8m (net).

The capital raising heavily diluted existing investors but the company, which owns Donut King among other brands, now at least has the chance to grow again.

However, there is little chance of that happening while an investigation by the ACCC hangs over the company’s leadership team.

RFG SEEKING NEW LEGAL COUNSEL

Aeeris

Net loss: $154,801 (down 39%)

Revenue: $1.76m (up 8%)

Chinderah-based emergency warning service Aeeris trimmed its previous loss by 39 per cent in the past financial year.

The company enjoyed a record surge in customer inquiries earlier in the year due to bushfires, hailstorms and flooding but this momentum was disrupted by COVID-19.

However, the company said demand had returned and its focus remained on turning prospective customers into fee-paying clients.

CYBER ATTACK ON NORTHERN NSW COMPANY AEERIS

THE BAD

Ardent Leisure

Net loss: $136.6m (up 102%)

Revenue: $393.3m (down 17.6%)

As expected, COVID-19 hit Ardent hard with attendance at its theme parks on the Gold Coast falling 21 per cent in FY20.

Although the company has sufficient liquidity to make it through COVID-19, thanks in no small part to nearly $70m in State Government funding, massive challenges remain.

They include the NSW border closure, a diminished offering at its parks with Dreamworld shutting down two rides, and the prospect of discounting to get more visitors through the doors.

ARDENT SAYS DEMAND FOR COAST THEME PARKS WILL BE ‘STRONGER THAN EVER’

Star Group

Net loss: $95m (FY19: $224m net profit)

Revenue: $1.749b (down 30.4%)

The operator of The Star Gold Coast has a familiar tale to tell in its full-year results involving strong momentum prior to February followed by a steep decline when COVID hit.

Star said this was particularly the case for its Gold Coast operation where normalised pretax earnings were almost 70 per cent higher than the prior corresponding period before covid.

However, CEO Matt Bekier believes the absence of international travel could spell a domestic tourism boom for the Gold Coast with punters spending more per head now they can’t go to Bali or Florida.

No final dividend for FY20 was declared.

Star has given its lenders an undertaking to cut net debt before it starts to pay cash dividends again.

STAR REVEALS FUTURE OF $2 BILLION BROADBEACH MASTERPLAN

AMA Group

Net loss: $62.12m (FY2019: $21.7m net profit)

Revenue: $888m (up $46.5m)

Panel beater consolidator AMA Group saw its revenue soar largely from the acquisition of the Capital S.M.A.R.T business.

An impairment of $47m against the carrying value of that business as well as a sharp increase in financing costs was largely responsible for the loss.

COVID-19 impacted the business largely because people used their cars less for a period meaning less kilometres travelled and less accidents.

The company says it had a strong operating performance in July, which bodes well for FY21.

AMA GROUP ANNOUNCES FIRST CONTRACT WITH MAJOR FLEET

G8 Education

Net loss (first half): $239m (1HFY19: $18.9m profit)

Revenue: $309m (down 28%)

G8’s result was summed up best by Morgans analyst Fiona Buchanan who called it “messy”.

The arrival of COVID-19 was significant with underlying earnings falling by 44 per cent to $29m and revenue dropping by 28 per cent to $308m.

Thanks to a capital raising and its bank-easing covenants G8 has enough funds to make it through a prolonged downturn.

The first-half result (as opposed to full year) is because G8 reports on a calendar-year basis not financial year.

G8 EDUCATION LOOKS TO CUT DOWN ON ITS 23 BRANDS

Village Roadshow

Net loss: $117.4m (FY19: $6.6m)

Revenue: $786m (down 21.5%)

Movie World owner Village Roadshow had a tale of two halves with the first six months of the financial year showing strong sales and the second half largely wiped out by COVID-19.

However, there have been green shoots such as strong occupancy at the Sea World Resort for the July school holidays.
The opening of new rides at Sea World should provide a boost to patronage as well.

Village also benefited from new funding from its lenders and the Queensland Government to the tune of $70m.

VILLAGE BOSS SPEAKS OUT ON ‘TRAUMATIC’ CLOSURES

THE UGLY

Smiles Inclusive

Net profit/loss: N/A

Revenue: N/A

It is hard to overstate how much of a trainwreck the listing of Smiles Inclusive on the stock exchange has been.

The share price has been suspended, last trading at 3.5c.

Investors have seen the stock price plunge so far as to become virtually worthless — bear in mind former CEO Mike Timoney sold off his stake for just 1.1c a share.

The company has repeatedly vowed to release its audited half-year results but failed to do so.

SMILES ADMITS TO CASHFLOW REPORT BLUNDER