Corporate Travel Management Limited

 
Strong revenue conversion to EBITDA: Corporate Travel Management Limited (ASX: CTD) is engaged in providing innovative and cost-effective travel management solutions to corporate management. The company offers end to end travel management solution including the purchase and delivery of travel services for its clients.

The company, in the recent past, has announced to pay a dividend of AUD 0.180 per share on April 12, 2019, on fully paid ordinary shares.The ex-date for the same is 7 March 2019, and the record date is 8 March 2019.    
 

 
Comparative Statutory Profit & Loss (Source: Company Reports)
 
The TTV of the company increased by 31% on the prior corresponding period (pcp) to $2,951.5 million in 1H19 compared to $2,258.5 million in 1H18. The company did an excellent translation of revenue to EBITDA due to benefits of CTM's growing scale, technology and automation. The underlying EBITDA of the company went up by ~21% to $64.6 million in 1H19 compared to $53.5 million in the previous corresponding period, primarily on the back of strong organic growth and specifically record client wins.

Strategic initiatives: The company is tracking at the top end of FY19 Guidance with underlying EBITDA ranging around AUD$144-150 million with a 15% to 20% growth as compared to FY18. It is expected to enhance shareholder value in mid to long term which will depend on key strategic initiatives such as Continued Organic Growth & Acquisition, continuous development of SMART technology suite globally & develop new tools for its clients, innovation, and continued investment to attract, retain and develop the brightest talent, etc.

On the price-performance front, the stock has done well to generate a YTD return of 25.60% and an attractive return of 12.64% over the past one month (as at March 01, 2019) and is trading PE multiple of 33.64x. Hence, considering a robust financial performance in 1HFY19 along with better EBITDA guidance for FY19, we, therefore, reiterate our “Hold” recommendation on the stock at a current market price of $26.790 per share.
 

Nearmap Limited

Strong organic revenue growth: Nearmap Limited (ASX: NEA) is a small-cap technology company with the market capitalization of $1.11 Bn as of March 04, 2019. It has laid the platform for frequently-updated and high-resolution aerial imagery. The company caters to several industries including engineering, rail, construction, etc. Recently, the company has issued 1,733,333 fully paid ordinary shares on conversion of options. The notice is applicable to 1,583,333 shares issued to the members of the key management personnel of the company. And, remaining 150,000 shares were issued to employees who fall under the provisions of ASIC Class Order Employee Incentive Schemes.On the analysis front, the portfolio of the group increased to $78.3 million, an $11.3 million during the half, and 42% organic growth Y-o-Y post exchange rates adjustments. The growth was primarily driven by strong sales in subscribers and the average subscription value. The group revenue grew by 45% to $35.5 million in 1HFY19 over the prior corresponding period. Net loss came in at ~$1.97 million in 1HFY19, showing an improvement of 70% against 1HFY18, primarily due to a significant rise in revenue during the same period. On the balance sheet front, the current ratio stood at 1.98x in 1H F19 with zero debt. The Positive outlook for the business is enhanced by the recent capital raise, enabling Nearmap to accelerate its strategic objectives in pursuit of the considerable global market opportunity.


Consolidated Statutory Profit & Loss (Source: Company Reports)

In H2 FY19, the company will enhance its products, with a range of releases to be rolled out to increase the workflow utility and customer stickiness of the MapBrowser platform.Given the disciplined approach with respect to capital management, the company reaffirmed its cash flow break even guidance for FY 2019 excluding the deployment of capital raise proceeds.

The stock performance remained very strong with a YTD return of 63.40%, and a return of 44.51% over the past three months. The stock is trading close to 52-week higher level. By looking at decent fundamentals and current trading level, we maintain our “Hold” recommendation on the stock at the current market price of $2.650 per share (up 6% on March 2019).
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.