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- Flight systems developer, Adacel Technologies (ADA) is estimating its full-year profit before tax to be around $4 million, despite operational disruptions caused by COVID-19
- Due to coronavirus-related travel bans, four planned system updates in Fiji and Portugal, which were scheduled for this quarter, will need to be postponed until further notice
- However, overall the company remains largely sheltered from the effects of the ongoing COVID-19 pandemic, which has severely impacted the aviation industry in recent months
- Consequently, the company is maintaining its previously announced unfranked dividend of one cent a share, which will be paid on April 15
- Alongside this news, the company has appointed its current interim CEO Daniel Verret to the position in a permanent capacity
- Adacel is up 2.56 per cent and shares are trading for 40 cents each
Flight systems developer, Adacel Technologies (ADA) is estimating its full-year profit before tax to be around $4 million.
The figure remains largely unaltered by the ongoing COVID-19 pandemic, which has severely impacted the aviation industry in recent months.
However, while the aviation industry at large is experiencing severe disruptions, Adacel remains largely sheltered.
That being said, the company has been marginally impacted by the pandemic. Due to international travel bans, four planned system updates in Fiji and Portugal, which were scheduled for this quarter, and will need to be postponed until further notice.
The company was quick to point out that these projects are under contract and will commence as soon as international travel normalises.
Despite these disruptions, the company has a maintained its previously announced unfranked dividend of one cent a share, which will be paid on April 15.
Chairman of Adacel, Michael McConnell believes the company remains in a relatively strong position, given the challenges facing the industry overall.
“Despite delays in several projects caused by Covid-19, we are seeing the resiliency of our workforce, the strength of our services business model, the flexibility of our cost structure and solid recurring cash flow generation,” Michael commented.
“Assuming modest and steady recovery from the COVID-19 disruption, we anticipate continued improvement in our financial performance in FY2021,” he said.
Alongside this news, the company has appointed its current acting CEO Daniel Verret to the role permanently. Daniel initially joined the company in 2018 and has been serving as acting CEO since mid-2019.
Michael McConnell went on to say that he and the Board are delighted with Daniel’s appointment and believe he will navigate the company deftly in the current challenging environment.
Adacel is up 2.56 per cent and shares are trading for 40 cents each at 11:55 am AEST.
