The Coventry Group Ltd (ASX: CYG) share price will be on watch this morning following the company's release of a trading update.
At yesterday's market wrap, the industrial solutions provider's shares finished the day at $1.31.
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How did Coventry perform?
The Coventry share price could be on the move today as investors digest the company's solid performance for Q3 FY21.
For the period ending 31 March 2021, Coventry reported robust growth across its key metrics. Group sales accelerated by 16.9% over the prior corresponding period (pcp), and were up 12.6% when excluding acquisitions.
Coventry revealed that year-to-date sales are at $209.2 million, a jump of 13.9% on the previous comparable year. When excluding H.I.S Hose, year-to-date sales lifted 12.1%.
The overall result was mostly driven by the company's Fluid Systems segment which recorded a 32% gain on sales in Q3 FY20. The business unit achieved new sales orders throughout the period and completed a prior order of $8 million that was placed in Q1 FY21.
Moving on, the Trade Distribution segment realised a 7.4% increase over this time last year. Coventry noted that all divisions within Trade Distribution have improved contribution.
At the end of March, the company closed the quarter with net assets of $107.6 million.
No outlook was given due to the uncertainty surrounding COVID-19. However, the group stated that its outstanding performance is continuing to run into Q4 FY21.
Coventry group CEO and managing director Robert Bulluss commented:
We are pleased the Group has delivered a third consecutive quarter of strong sales growth in FY21. All business units contributed to the improved performance of the Group. We are continuing to execute our clear strategy for long term sustainable profitable growth.
Coventry share price snapshot
The Coventry share price has been advancing since April 2020, reflecting a 150% surge and, year to date, it is sitting 36% higher. The company's shares hit a 52-week high of $1.35 on Wednesday and could be set to break that feat again if investors respond positively to today's update.
On valuation grounds, Coventry commands a market capitalisation of roughly $117.9 million, with 90 million shares on issue.
