Why the Advance Nanotek (ASX:ANO) share price tumbled 12% today

The Advance Nanotek Ltd (ASX: ANO) share price tumbled lower today following the release of the company’s interim results for the half-year.
The post Why the Advance Nanotek (ASX:ANO) share price tumbled 12% today appeared first on The Motley Fool Australia. –

asx shares falling lower represented by investor wearing paper bag on head with sad face

Advance Nanotek Ltd (ASX: ANO) shares tumbled lower today following the dispersion manufacturing company releasing its interim financial report for the half-year ended 31 December 2020. By the market’s close, the Advance Nanotek share price had fallen 12.37% to $3.40.

In short, the results were a significant downgrade from the prior year. Let’s take a look at how the numbers stacked up and management comments regarding the slip in performance.

What drove the Advance Nanotek share price lower?

The Advance Nanotek share price was heavily weighed down today after the release of the company’s results. Advance Nanotek reported that its revenue for the half-year ended fell 69.63% to $3.433 million. This result also flowed down to the company’s profit, resulting in a 93.32% decrease to $225,000 in profit.

You might ask what could lead to such a significant impact on results. The answer provided in the report is the ongoing travel restrictions and lockdowns caused by COVID-19. Given the company’s aluminium oxide and zinc oxide dispersions are made predominantly for use in sunscreens, demand for the product has fallen off a cliff.

Consequently, earnings per share (EPS) has declined from the previous period’s 38 cents to just 5.71 cents this half.  

In the chair’s letter accompanying the half-year accounts report, there was some good news outlined, despite the poor result. This included the following:

  • Remains commercially debt-free.
  • Successful installation of a new dispersion line capable of producing the equivalent of 250 million 100-gram tubes annually.
  • Successful installation of equipment to increase zinc oxide production to 5,000 tonnes per annum.
  • New product development continued.

The new products developed by Advance Nanotek include vegan and/or organic-based offerings, such as an all-natural insect repellent sunscreen. The company is awaiting Therapeutic Goods Administration (TGA) approval before scaling production.

The board’s forward view

Despite the disappointing result, the Advance Nanotek board emphasised that the achievements made during the half-year are likely to produce positive results for many years to come. Meanwhile, the board further advised that the impacts on sunscreen sales due to COVID-19 will hopefully be resolved before 2023.

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 February 15th 2021

More reading

Mitchell Lawler owns shares of Advance NanoTek Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Advance NanoTek Limited. 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 Why the Advance Nanotek (ASX:ANO) share price tumbled 12% 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!