KLS - Kelsian Group

[finicky]

CEO ... emphasised that Kelsian is in a transformative year of investment, which has pushed capex and depreciation higher. There should also be a second-half skew to earnings in both the Australian and US bus businesses.

Worth a watch.
Not Held

 

[finicky]

Kelsian down 24%?

Has to be in the FY25 outlook where they draw attention to capital expenditure, interest rates and depreciation. All I suspect will be higher but haven't had time for once to look into it. Almost made an impulse first buy.

Not Held

 

[Dona Ferentes]

Kelsian down 24%?

Has to be in the FY25 outlook

and has not been much better, with 26 Feb numbers leading to another 25 per cent drop.

Key Financial Overview
• Revenue up 9.1% to $1,071.8 million;
• Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (adjusted for significant one-off items) up 1.3% to $132.2 million;
• Underlying Net Profit After Tax and before Amortisation (adjusted for significant one-off items) down 7.9% to $39.7 million;
• Earnings per Share before Amortisation declined by 12.6% to 14.7 cents per share; reflecting higher interest due in part to peak of capital investment program;
• Statutory Net Profit After Tax was $20.1 million compared to $28.1 million in 1HFY24;
• Continued strong cash conversion at 93.0%;
• Fully franked interim dividend of 8.0 cents per share (1HFY24: 8.0 cents per share).

Key Operational Overview
• Bankstown Rail Replacement service commenced successfully on time and on budget;
• Sydney’s Region 6 contract continued to underperform the rest of the portfolio;
• Renewed Bunbury & Busselton bus services contract, securing $100 million revenue over 10-year term;
• AAAHI7’s industrial and construction projects ramping up in line with expectations; lower levels of charter work and reduced services for large technology clients during the period;
• Renewed and commenced the expanded, capital light, Bustang contract with the Colorado Department of Transportation, securing up to US$26.5 million of revenue in the first year;
• Renewed Jersey contract (Channel Islands) securing estimated A$260 million in revenue over 10-year term; and
• Renewed Darwin to Mandorah, and Darwin to Tiwi Islands ferry services contracts for five years.

.
there was an ASX aware reply today which brought a bit of a turn up, but the last 12 months are rather grim. It's 'margins plus' sort of deals, known costs and durations, I would have thought? Eyes off the ball or underquoting ?