Greencross Limited (ASX: GXL) 

Board changes: Recently, Greencross appointed Simon Hickey as its Chief Executive Officer and Managing Director, who will start acting effectively from 5 March 2018. He will bring his leadership experience to the Company with a significant understanding of complex competitive business environments and he has a track record of delivering improved customer experience. Greencross will announce its results for the six months ending 31 December 2017 on 20 February 2018. The Company is yet to complete its audit for the half year while Greencross expects to deliver a 9% growth for the first half. Revenue and NPAT for the first half is expected come out to $430 million and $24 million approximately. The Group achieved 4.5% of LFL sales growth in the first half. The business continues to perform in line as planned for H2 FY2018 and the company remains comfortable with the market consensus for the FY2018 full year result.

Meanwhile, the group expanded its network by over 10% in FY17 from the prior year through the addition of 18 retail stores and 25 veterinary practices. The Company’s increased profitability has led the Board to resolve to pay a final fully franked dividend of 9.5 cents per share which amounted to a total dividend of 19.0 cents per share for the whole year. Despite of the increased competition, Company is extremely well placed to consolidate and grow its market share which is currently still less than 10%. The share prices increased by 9.3% in the past six months, while decreased by 2.01% in the past one month owing to short selling. Further, the stock slipped 5.2% on February 06, 2018 with the overall market trading trend and volatile conditions. Given the prospects, we put a “Buy” recommendation at the current price of $6.02
 

Sales Category (Source: Company Reports)

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