- Communications provider CommsChoice Group (CCG) has updated its guidance for the 2020 financial year, estimating revenues of $19 million
- The company’s balance sheet is strong, with approximately $2.4 million in cash on hand as of June 30, 2020
- CommsChoice’s staff in Australia and the Philippines are successfully operating the company as they work from home
- The company’s business trading remains healthy in spite of the ongoing impacts of the COVID-19 pandemic
- Today, CommsChoice Group shares are in the grey, trading for an even 10 cents each
Communications provider CommsChoice Group (CCG) has updated its guidance for the 2020 financial year, estimating revenues of $19 million.
This company’s review of full-year financial results has been completed, with the audit of the results now underway.
The 2020 financial year’s anticipated revenue of approximately $19 million is lower than revenue from the 2019 financial year. This is mainly due to the absence of larger, one-off revenues which CommsChoice experienced in the previous financial year.
Preliminary, unaudited financial results are expected to show underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of at least $2.1 million. This is towards the higher end of the company’s previous market guidance, which estimated between $1.8 million to $2.2 million in underlying EBITDA.
As of June 30, 2020, CommsChoice had maintained a strong balance sheet, with $2.4 million in cash on hand. This is an improvement of the $1.6 million which the company had in cash at the end of the March 2020 quarter.
At the end of the June 2020 quarter, CommsChoice also had no debt, having repaid all of its existing facilities. The company has also retained access to an overdraft facility and a lease facility totalling $1 million, which is undrawn.
Despite the ongoing impacts of the COVID-19 pandemic, CommsChoice’s business trading has remained healthy throughout the financial year. The company is continuing to receive a good level of enquiries and interest from potential corporate clients.
While COVID-19 did reduce total sales wins and cause delays in buying decisions, CommsChoice believes the new quarter is looking positive.
The majority of the company’s staff in Australia and the Philippines are working from home, for their safety. Despite working remotely, CommsChoice staff have been very successful in continuing to operate the business.
CommsChoice Group’s CEO, Peter McGrath, commented on the company’s pleasing financial results.
“We are extremely pleased to be tracking at the upper end of guidance provided back in August 2019," Peter stated.
“Despite the wider problems caused by COVID-19, the business remains in good shape, with a healthy level of new sales opportunities and solid demand for our services,” he said.
After the release of this news on August 6, CommsChoice’s share price rose by 20.48 per cent. Coupled with the news of its new Microsoft Teams calling nodes in Asia on August 4, the company’s share price has increased by 44.92 per cent since market open on Tuesday.
Today, CommsChoice Group shares are in the grey, trading for an even 10 cents each at 12:06 pm AEST.