Why the Aspermont (ASX:ASP) share price is rocketing 62% higher

The Aspermont Ltd (ASX: ASP) share price is one of the best standout performers today, rising 62% to 4.7 cents. We take a look into why.
The post Why the Aspermont (ASX:ASP) share price is rocketing 62% higher appeared first on The Motley Fool Australia. –

upward trending arrow made from fireworks display

The Aspermont Ltd (ASX: ASP) share price is one of the best standout performers today, rising 55% to 4.5 cents at the time of writing.

The latest rise in the company’s shares comes after Aspermont reported its quarterly update for 2021 to investors last week.

It’s worth noting that recent surge in the company’s shares marks an all-time record.

Quick take on Aspermont

Headquartered in Australia, Aspermont is a leading media services provider to the global mining and resources industry. The company delivers subscription-based content through digital print, conferencing, and event channels.

Aspermont has offices in the United Kingdom, Australia, Brazil, North America, and the Philippines.

Key highlights of the Aspermont Q1 result

The Aspermont share price is on the move as investors are fighting to get a hold of its shares.

At the end of the December period, Aspermont delivered growth in all revenue streams excluding live events which were suspended due to COVID-19. This equated to total revenue of $15.2 million for the company, with recurring revenue standing at 75%.

The number of subscriptions increased to 7,885 which resulted in a 13% lift year-on-year. Monthly active users came to more than 250,000 users, representing a 20% compound annual growth rate.

Aspermont recorded annual contract value (ACV) at $8.9 million, up 6.4% compared quarter on quarter.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) rose 220% to $0.4 million. This was in contrast to the $70,000 achieved over the prior corresponding period (pcp).

Aspermont reported a cash balance of $4.6 million with no debt at the end of December.

Management commentary

Aspermont Managing Director, Alex Kent, hailed the outstanding results, saying:

Aspermont had a solid first quarter despite the impact of COVID-19 on the events business.

Our commercial models have proven to be robust, which enables us to increase revenue by launching new products with improved gross margins for the company despite the economic conditions.

A catalyst for the strong rise in the Aspermont share price?

In the company’s Q1 highlights, management took the time to reflect on the company’s share price. It said:

As a board, we consider Aspermont to be significantly undervalued compared to other global Mediatech peer companies, but we are pleased to see the recent rise in share liquidity as our new Frankfurt stock Exchange listing has attracted new investors in Germany. Our growth prospects are improving quarter by quarter as we enter new markets, with an increased focus on Asia.

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

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 Why the Aspermont (ASX:ASP) share price is rocketing 62% higher 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!