Stealth Global Holdings (ASX:SGI), a prominent provider of industrial supplies and solutions, has reported exceptional financial results for the fiscal year ending on June 30, 2023. The company, renowned for its diverse range of industrial offerings for workplaces, achieved significant growth and improved financial metrics.
Record-breaking Year of Growth
The company's latest financial report underscores its robust performance in the market, showcasing its resilience and strategic prowess. Highlights from the report include:
- Total Revenue Surge: Stealth's total revenue witnessed a strong upswing of 11.4%, increasing to $111.0 million.
- Continued Customer Revenue Boost: The company recorded an impressive 17.8% increase in continuing customer revenue, following a strategic rationalisation of unprofitable contracts.
- EBITDA Growth: Stealth's EBITDA experienced a substantial uptick of 32.5%, reaching $5.3 million. This boost was accompanied by an improved EBITDA margin of 4.8%.
- Significant Profit Growth: The company reported a substantial 50% rise in Statutory Net Profit After Tax, reaching $0.9 million.
- Earnings Per Share Soar: Stealth's earnings per share (EPS) surged by an impressive 51.7%, reaching 0.91 cents per share. The Return on Capital Employed also showed substantial improvement, climbing to 9.9%.
- Strong Free Cash Flow Generation: The company's free cash flow generation witnessed a remarkable increase of $6.0 million, totaling $5.6 million.
- Strategic Debt Reduction: Stealth managed to reduce net debt by 29.4%, amounting to $7.2 million, with a net debt ratio to EBITDA of 1.4x.
- Positive Inventory Management: The company successfully lowered its inventory, with inventory levels as of June 30 amounting to $14.8 million, accounting for 13.3% of annual sales, down from 14.2%.
Positive Outlook and Dividend Declaration
Stealth's strong financial performance serves as a testament to its strategic investments over the past three years. With a compound annual growth rate of around 30%+ in revenue and earnings, the company's growth momentum remains positive. The strategic investment in building a stronger and more diversified industrial supply business has positioned Stealth for continued success.
Mike Arnold, Group Managing Director & CEO, commented on the results, stating, "Stealth's final audited results for FY2023 confirm another record year for the Company with strong growth in revenue, cash flow generation, reported earnings, and also earnings per share."
The company's outlook remains positive, with ongoing demand and improved scale driving its earnings targets. Furthermore, Stealth has announced its intention to declare a maiden dividend to shareholders based on the period ending FY2024, reflecting the company's confidence in its future prospects.
Continued Growth Strategy
Stealth's success can be attributed to its strategic investment in e-commerce, nurturing strong customer relationships, and leveraging the benefits of its acquisition strategy. The company's operational metrics reveal impressive growth across key indicators, including daily sales value, gross profit, and sales value per employee.
Looking ahead, Stealth plans to execute its growth strategy in a disciplined manner, targeting further revenue and earnings growth in FY2024. With a commitment to supply chain efficiency, channel expansion, enhanced digital capabilities, and strategic investments, the company is poised for sustained growth and innovation.
Investors and stakeholders are invited to a comprehensive briefing and presentation on the FY2023 results, scheduled for September 7, 2023. This event will provide an opportunity to delve deeper into the company's financial achievements and strategic direction.
