Insights

Why the Coventry Group (ASX:CYG) share price is in focus today

The Coventry Group Ltd (ASX: CYG) share price could see movement today after news of a new purchase.
The post Why the Coventry Group (ASX:CYG) share price is in focus today appeared first on The Motley Fool Australia. –

Young male investor smiling looking at laptop

The Coventry Group Ltd (ASX: CYG) share price is in focus this morning, after news of an acquisition. The supplier of industrial solutions has agreed to purchase Fluid Power Services Pty Ltd (FPS).

The Coventry Group share price closed at $1.16 yesterday and has remained flat in early trade so far.

Let’s look closer at the news Coventry released this morning.

New acquisition

Coventry Group is set to acquire Fluid Power Services, a Tasmania based provider of specialised hydraulic equipment.

It stated the acquisition will allow create a Tasmanian branch of the company’s Fluid Systems division.

FPS is said to be a leading provider of hydraulic products and engineering solutions in Tasmania. It has a diverse customer base and strategic supplier alliances with Rexroth and Hydac.

Coventry Group will purchase the Tasmanian company for $2.1 million, which it will pay in cash. The ability for a cash transaction comes from the group’s new financing facility with NAB, which it announced last week.

The release from Coventry Group stated FPS has had a total revenue of $4.9 million in the 2020 financial year. It also has an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.2 million.

The acquisition is planned to be finalised late this month. Although, Coventry Group has stated in the case of material adverse change, it may not go through with the acquisition.

Commentary from management

Coventry’s managing director and CEO Robert Bulluss said Coventry is pleased to welcome FPS to the group.

FPS is a well-run business that has delivered sales and earnings growth over an extended period. The business is highly complementary to our Fluid Systems business, further diversifying into non-mining markets and providing geographical coverage in Tasmania. FPS represents another compelling acquisition opportunity that is consistent with Coventry Group’s growth strategy and satisfies Coventry Group’s key acquisition criteria.

Coventry Group share price snapshot

The Coventry Group share price has had a good performance on the ASX lately. The group’s share price has risen by 17.6% year to date and is also up by 142.7% over the last 12 months

Coventry Group has a market capitalisation of around $104 million, with approximately 90 million shares outstanding.

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 Brooke Cooper 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 Coventry Group (ASX:CYG) share price is in focus 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!