The Aerometrex Ltd (ASX: AMX) share price is 5.71% lower in early morning trade compared with the All Ordinaries Index (ASX: XAO) which is down 1.92% to 6,125.20 points. At the time to writing, the Aerometrex share price is trading at $1.32 following the company's release of its full-year results for the financial year ended 30 June (FY20).
Image source: Getty Images
What's moving the Aerometrex share price?
The Aerometrex share price is this morning being sold down despite the company reporting strong growth across the overall business in its FY20 report. This was driven predominately by the company's LiDAR and 3D segments. Total revenue for the aerial mapping specialist came in at $20.09 million, an increase of 24.7% on FY19's revenue of $16.1 million.
Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8.7% to $4.6 million. This was due to the company's investment in sensor and aircraft assets to support future growth.
Aerometrex recorded a positive cashflow from operations of $8.1 million, up 60% and a strong cash position of $22.2 million.
COVID-19 impact
The business advised that there was no material impact in FY20 from COVID-19, however it expects some logistical challenges due to border closures in the near future. Furthermore, crews have remained in the field longer which has had added some costs to the company.
Aerometrex has $4.5 million of undrawn debt facilities should the need arise to see the company through the pandemic.
What did management say?
Aerometrex Managing Director, Mark Deuter, said:
The Company is continuing to grow strongly in our subscription service MetroMap, in LiDAR and in 3D modelling. We are continuing to execute the growth plans put forward in our Prospectus of December 2019. The Company's earnings have to a large degree offset cash expenditure on growth and it is pleasing to see a robust normalised EBITDA figure. We are excited at the new capabilities and developments arising from our increased R&D expenditure and we look forward to a successful FY21.
Outlook
Aerometrex did not provide any guidance going into FY21 as it will focus on its near-term strategic priorities. The continued growth of MetroMap has been building in the initial weeks of FY21 with annual recurring revenue (ARR) jumping from $1.66 million at the end of the financial year to $2.87 million at the end of August.
The aerial mapping specialist also expects to see opportunities from its acquisition of Spookfish Australia which will bump up revenue in the coming year.
In the business' overseas operations, the company has established a base in the United States to capitalise on the significant 3D growth prospects. Aerometrex is currently in ongoing discussions with multinational technology and gaming companies.
About the Aerometrex share price
The Aerometrex share price has regained 89% since its March low of 70 cents. However, since the beginning of the calendar year, the Aerometrex share price is trading 34% lower.
