MayAir Group plc (AIM: MAYA.L), a leading specialist provider of air purification technology, has given DirectorsTalk its interim results for the six months ended 30 June 2016.
OPERATIONAL HIGHLIGHTS
— The Group has strengthened its net cash position and has converted debtors into cash, delivering a $1.2 million improvement in MayAir’s net cash position to $16.2 million (H1-2015: $15.0 million).
— Order book developments during H1-2016 provided good visibility for FY-2016. The Board expects FY-2016 to be second half weighted.
— Currently more than US$49.2 million worth of secured projects within the H2-2016 pipeline. The Directors expect the vast majority of this pipeline will be fulfilled and recognised in the current financial year.
-- Over US$40 million of further projects tendered.
— Trading in July and August 2016 was encouraging, with over US$10 million of revenue generated.
— Strong enhancement in H1-2016 operating margin, largely due to a higher sales mix from the commercial and replacement divisions.
— During the year, the Group invested and set-up another PTFE filter production line, which has significantly increased its capacity.
FINANCIAL HIGHLIGHTS
Unaudited Unaudited Audited
H1 2016 H1 2015 FY 2015
(US$ million) (US$ million) (US$ million)
--------------- --------------- ---------------
Revenue 19.0 31.6 63.6
Gross Profit 7.0 11.0 20.0
Operating Profit 1.5 4.4 8.1
EBITDA 2.0 4.9 9.0
Profit After
Tax 1.3 3.4 6.3
EPS - Basic
(US$ cent) 2.53 9.16 14.6
Gross Margin 37 35 32
Net Cash 16.2 15.0 14.9
Net Assets 47.7 44.7 47.3
Yap Wee Keong, Chief Executive Officer of MayAir Group, said: “We are pleased with the Group’s development in the first half of 2016. Due to the timing of revenue recognition of our secured mega projects in the industrial division, the Group’s results will be weighted towards the second half of the year. With a strong pipeline of secured projects, and responses awaited on over $40 million of projects which we have tendered for, we are well placed to finish 2016 strongly and to carry significant work into 2017. Whilst it remains too early to predict the outcome for the full year, the Board is confident that the Group’s results will be in line with market expectations.
“The trajectory of our sales growth for the commercial and replacement divisions has been encouraging, alongside our consistently leading platform of industrial air purification. The combination of these revenue streams and associated pipeline opportunities provide a more even and predictable growth pattern in the longer term and improved operating margins moving forward. The clean air market in which MayAir operates continues to be positive, particularly in China, with government policy encouraging investments in high-technology industries and greater adoption of clean air solutions to manage air pollution. The Directors look forward to another year of revenue growth.”
