G3 reports first quarter metrics in line with targets
G3 reports first quarter metrics in line with targets
By Suze Metherell
July 27
(BusinessDesk) - G3 Group, the mail operations and document
management company which is listed on the new small-cap NXT
market, says first-quarter trading was in line with targets.
Gross margin as a percentage of revenue was 24.5
percent in the three months ended June 30, tracking closely
with its 21.9 percent full-year target, the Auckland-based
company said in a statement. Operating margin as a
percentage of revenue was 22.7 percent in the quarter,
against an annual target of 20.1 percent.
The NZX's
new platform comes with a less onerous disclosure regime
requiring regular operating metrics updates rather than the
continuous disclosure on the main board. NXT will ultimately
replace the decade-old secondary board, the NZ Alternative
Index (NZAX), which has languished from a lack of investor
interest.
G3 was the first to join the new market on
June 18, listing its 53.8 million shares at 75 cents apiece,
giving it an implied market value of $40.4 million, but will
not issue any new shares, according to the market
announcement. G3 shares last traded at 87 cents.
The company is made up of New Zealand Mail, Send, Pete's Post and Fastway Post, which provide business mail services, and Universal Mail, a UK-based tourist stamp operation. The company entered into document management with brands Filecorp and Eureka in October last year, and is chaired by Rob Campbell.
In its key operating milestones (KOM) update today, inventory turnover was 19.2 sales days, compared to the annual target of 22 days, while it processed 13.3 million units, with an annual target of 70.5 million units.
In 2014 the company reported earnings before interest, tax, depreciation and amortisation of about $3.5 million on sales of $30 million, according to the website.
G3 is owned by family trusts associated with
Evan Christian and Jason
Butler.
(BusinessDesk)