Adacel Technology (ASX: ADA) – air traffic solution provider
COMPANY SCOREBOARD
| Pro Plus | Pro | Con Plus | Con |
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ABOUT COMPANY
Adacel Technologies (https://www.adacel.com) develops and sells air traffic management, air traffic control simulation and training, and software applications and services in USA, Canada, and Australia.
CAPITAL STRUCTURE
| ASX Code | Share Price | Shares | Option (In) | Market Cap | Cash/Asset ($m) |
| ADA | 0.62 | 76224989 | 47259493.18 | US1.4/3.9 |
| Holders No | Top 20 (Cur) | Top 20 (Pre) | Director Hold | Performance Right | Note |
| 3117 | 67.84% | 67.84% | 9.60% | 1477000 |
In October 2022, the company upsized its loan facilities to USD$13.2m.
In May 2023, CFO left.
BUSINESS
Below is the company’s past five years performance:
| ADA ($USD) | 2023 | 2022 | 2021 | 2020 (AUD) | 2019 (AUD) |
| Operation Revenue | 27250 | 27560 | 30010 | 39714 | 41357 |
| Cost of Sale | -23123 | -21389 | -23418 | -25734 | -30314 |
| Gross Revenue | 4127 | 6171 | 6592 | 13980 | 11043 |
| Gross Margin | 0.1514 | 0.2239 | 0.2197 | 0.3520 | 0.2670 |
| Overheads | -2327 | -1984 | -1737 | -10914 | -13262 |
| Fixed Overheads | |||||
| Variable Overheads | |||||
| Total Operation Expense | -2327 | -1984 | -1737 | -10914 | -13262 |
| Operation Profit | 1800 | 4187 | 4855 | 3066 | -2219 |
| Other Revenue | 528 | 1938 | 3849 | 1194 | 2181 |
| Interest Expense | -332 | -197 | -234 | -396 | -146 |
| D&A | -1683 | -1509 | -1364 | -1915 | -687 |
| Income Tax | -981 | -1917 | -242 | 1436 | -743 |
| Net Profit | -668 | 2502 | 6864 | 3385 | -1614 |
| NOTES |
The company makes the majority of income in Canada, and expects to produce US$1m PBT for FY23 (downgraded twice by 70-80%) due to unfavorable revenue mix.
The company’s systems sector makes around 13% margin while service division margin stands at 45%.
SUMMARY
The substantial increase in loan capacity together with obvious sale down at around 70c is a warning light.