- Property valuation company Acumentis Group (ACU) has reported its strongest quarterly revenues since late 2019’s affected period
- The company’s revenues dipped in May due to COVID-19, but began to recover in June 2020
- Now, Acumentis is well-positioned to capitalise on increasing valuation activity, property debt refinancing, and historically low interest rates
- As of June 30, 2020, the company had $1.8 million in cash, and an unused overdraft facility of $1.2 million
- Acumentis Group shares are steady today, trading for 10.5 cents
Property valuation company Acumentis Group (ACU) has reported its strongest quarterly revenues since late 2019’s affected period.
In April, at the beginning of the quarter, the company withdrew its earnings guidance for the 2020 financial year. Acumentis attributed the decision to the substantial economic uncertainty caused by the COVID-19 pandemic.
The company’s revenues dipped in May as a result of the coronavirus, but began to recover in June as the quarter drew to a close. Despite the disruption, Acumentis averaged $3.7 million in revenue a month during the quarter.
Overall, the June quarter’s revenue increased by 16 per cent, compared to the preceding March quarter. Acumentis’ business activities also remained unchanged, with the full workforce retaining their positions during the worst of the pandemic’s first wave.
Despite its largely negative impacts, COVID-19 has created a market environment which is currently beneficial to the company. Acumentis has recently noticed an increase in valuation activity, due to increasing property debt refinancing and historically low interest rates.
The company expects that demand for its services will be boosted by local and federal government stimulus measures, and is well-positioned to capitalise on this.
Acumentis’ operating activities generated $3.1 million in quarterly cash, compared to the consumption of $1.8 million cash in the previous quarter.
As of June 30, 2020, Acumentis had a cash balance of $1.8 million, plus an unused overdraft facility of $1.2 million. Based on its current quarterly operating cashflows, the company should have $6.1 million in available funding.
After releasing its quarterly activity and cash flow report on Friday July 31, the company’s share price rose by 25 per cent.
However, Acumentis Group shares are steady today, trading for 10.5 cents at 10:34 am AEST.