Total
0
Shares
- Chairman, Keith Perrett
Chairman, Keith Perrett
Source: Acumentis
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Acumentis (ACU), a property assessment firm, had its best quarter since 2018, with revenue totalling $12.8 million
  • Revenue was up 18 per cent for the year ended June 30, with operating profit increasing 199 per cent to $2.5 million, according to preliminary results
  • The company has cash holdings of $3.7 million, term loan amounts of $2.6 million and an unused overdraft facility of $1.7 million as of June 30 2021
  • Acumentis closed up 13 per cent, rounding off the day of trading at 13 cents per share on July 26

Property valuation company Acumentis (ACU) has posted its strongest quarter since 2018, with revenues totalling $12.8 million.

This represented an increase of 22 per cent on the March 2021 quarter.

For the year ending June 30, preliminary results show revenue was up 18 per cent to $46.4million, with operating profit up 199 per cent to $2.5 million.

Earnings before interest, taxes, depreciation and amortization was $5 million with the company predicting growth for FY 22.

Acumentis also said it had continued to invest in technology and geophysical coverage, service offering and client diversification.

The company believes its valuation management system to be the only ISO27001 and IRAP (information security certifications) certified valuation management system in Australia.

Cash expenditures for the June quarter were in line with estimates, the company said, but there were one-time, non-cash impairment costs of $11.9 million booked in June 2021 for “statutory services customer relationship intangible and goodwill”.

The charges were as a result of the cessation of providing services under a material government contract, with the business line being fully written down.

Cash created from operations was $1.9 million in the third quarter, compared to $300,000 in the prior quarter.

The company has cash holdings of $3.7 million, term loan amounts of $2.6 million and an unused overdraft facility of $1.7 million as of June 30 2021.

Acumentis’ activities in Tasmania were expanded with the acquisition of Saunders & Pitt, which was announced on March 15 2021, and finalised on April 1 2021.

The transaction resulted in a net cash payment of $107,500 and the issuance of $400,500 in Acumentis ordinary shares for a total payment of $507,500.

The company earned $410,000 in revenue and incurred a $24,000 operating loss after the acquisition. These costs included one-time integration, rebranding, recruiting, training, and travel expenses, and they were all under budget.

The remaining 57.8 per cent of Acumentis’ WA affiliate was acquired on July 23 2021, with a start date of July 1 2021.

This firm was evaluated at $6.3 million in the transaction, making the 57.8 per cent stake worth $3.6 million.

The vendors received an initial cash payment of $1.8 million, with a further $200,000 due and 13,703,284 ordinary shares in Acumentis Group granted to them.

On July 1, 2021, $900,000 in net cash balances were added to the group’s balance sheet as a result of this purchase.

On the market today, Acumentis closed up 13 per cent at 13 cents per share.

ACU by the numbers
More From The Market Herald

" BWP Trust (ASX:BWP) appoints Danielle Carter to board

BWP Trust (BWP) has appointed Danielle Carter as Non-Executive External Director.

" Ingenia Communities (ASX:INA) purchases portfolios for $441m

Ingenia Communities Group (INA) has acquired additional lifestyle community portfolios for $441 million.

" SRG Global (ASX:SRG) secures projects valued at $70m

SRG Global (SRG) has secured two specialist façade contracts in Perth valued at approximately $70 million.

" Home values rising at softest rate since January

Australian property values increased by 1.3 per cent over November, marking the 14th month in a row that CoreLogic’s national home value inde…