The Coventry Group Ltd (ASX: CYG) share price is surging 9% higher today after the company released its trading update for the first-half of the 2021 financial year.
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The Coventry Group Ltd (ASX: CYG) share price is beating the All Ordinaries Index (ASX: XAO) today. The surge in its shares comes as the company released its trading update for the first-half of the 2021 financial year.
At the time of writing, the industrial solutions provider’s shares are up 9.4% to $1.04. In comparison, the All-Ordinaries Index is also travelling higher, up 1.15% to 7,015 points.
What did Coventry Group announce?
According to this morning’s release, Coventry Group advised that it has achieved a positive result despite COVID-19 uncertainty.
For the period ending 31 December, the company reported group sales of $138.1 million. This reflected an increase of 12.5% over the prior corresponding period, and a 11.9% lift excluding H.I.S Hose.
The latter was added to Coventry Group’s portfolio on 1 December, following the completed acquisition. The company noted that business integration is currently underway and on track.
For performance in each of the segments, Fluid Systems took charge, with sales rising 21.1% on the prior year. To date, $5.5 million has been received from its large $8 million won in the first quarter.
Trade Distribution sales also grew, but took second place with a 7.5% improvement from this time last year. The sound result was attributed to improved business units during the period.
Coventry Group recorded a healthy balance sheet for the first half with net assets totalling $105.3 million. In the prior period ending 30 June 2020, net assets stood at $102.1 million.
What did the head of Coventry Group say?
Coventry Group CEO and Managing Director, Mr Robert Bulluss, hailed the robust result, saying:
We are pleased with the Group’s momentum despite challenging conditions. We continue to execute on our strategy with positive results from all parts of the business. The integration and financial performance of our recent acquisitions is pleasing with acquisitions being an important part of our growth strategy.
Looking ahead, Coventry Group revealed that both of its divisions are continuing to perform to expectations. It noted that while growth has been achieved in the first half, the remaining financial year is uncertain. This is largely due to the timing of large scale projects affected by the unpredictable nature of COVID-19 trading conditions. Furthermore, the mounting trade dispute between Australia and China is also likely to have an effect.
A review of the Coventry Group share price
The Coventry Group share price is relatively flat over the past 12 months, down marginally 3%.
Its shares hit a 52 week high of $1.13 last February before COVID-19 took the world’s economy hostage. Falling to an all time low of 46.5 cents in April, the Coventry Group share price began to recover.
Today, its shares are just a whisker away from breaking a new 52-week high record.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.