Half Year 2025 Environmental Group Ltd Earnings Call Transcript
Key Points
- The Environmental Group Ltd (ASX:EGL) achieved a 16% organic growth in revenue, reaching $54 million, despite a downturn in the lithium sector.
- The company has $8 million in cash, providing a strong foundation for future growth and investment.
- EGL Energy, the oldest boiler company in Australia, reported a 34% increase in top-line growth, showcasing its resilience and market strength.
- The exclusive distribution deal with Fulton Boilers in Australia has exceeded expectations, with sales annualizing closer to $4 million.
- The company's waste services division has a strong pipeline, with recent tender wins and a $108 million pipeline, indicating promising future growth.
- A $1.2 million one-off issue within Baltec negatively impacted the financial results.
- EGL Clean Air faced challenging market conditions, with margins declining due to postponed projects and a downturn in the lithium sector.
- The company experienced a 2.1% margin decline in EGL Energy due to the costs associated with onboarding new staff.
- Cash conversion lagged due to increased inventory and contract assets, impacting short-term liquidity.
- The company faces cyclical risks in the mining sector, which have affected revenue streams, particularly in the lithium sector.
Hi everyone and welcome to the call. It's obviously the first half financial results presentation. I'm also joined by Paul Gaskett, Chief Commercial Officer; and Andrew Bush, our Chief Financial Officer; if you got any financial questions. I'll run you through the result, hopefully over the course of about half an hour, and I'll, happy to answer questions live on my screen or at the end, whatever you prefer.
So results, highlights, I actually thought it was, a pretty good result myself. I fully acknowledge we had the $1.2 million dollar, one-off within Baltec, but at the same time, purely organic growth in revenue actually grew 16% for the period up to $54 million. If you took away the $6million or $7 million, that's no longer in the lithium sector that we used to earn before that seeks to collapse, they're actually up about 23% in organic top line growth, which is a great outcome.
Obviously, we're disappointed here but our number, as I said due to that $1.2 million Baltec issue. I think what you need to bear in mind though
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