Insights

Here’s why the Coventry Group (ASX:CYG) share price is soaring 9% today

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.
The post Here’s why the Coventry Group (ASX:CYG) share price is soaring 9% today appeared first on The Motley Fool Australia. –

hand on touch screen lit up by a share price chart moving higher

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.

Outlook

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

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.

The post Here’s why the Coventry Group (ASX:CYG) share price is soaring 9% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!