New Risk • Nov 27
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 18% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (18% average weekly change). High level of non-cash earnings (87% accrual ratio). Market cap is less than US$10m (AU$8.20m market cap, or US$5.30m). Annonce • Sep 30
Cardno Limited, Annual General Meeting, Nov 27, 2024 Cardno Limited, Annual General Meeting, Nov 27, 2024. New Risk • Aug 30
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$14.5m (US$9.83m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks High level of non-cash earnings (87% accrual ratio). Market cap is less than US$10m (AU$14.5m market cap, or US$9.83m). Reported Earnings • Aug 27
Full year 2024 earnings released: EPS: AU$0.19 (vs AU$0.016 loss in FY 2023) Full year 2024 results: EPS: AU$0.19 (up from AU$0.016 loss in FY 2023). Revenue: AU$15.9m (up 43% from FY 2023). Net income: AU$7.54m (up AU$8.16m from FY 2023). Profit margin: 47% (up from net loss in FY 2023). The move to profitability was primarily driven by higher revenue. New Risk • Apr 10
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Australian stocks, typically moving 19% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (19% average weekly change). High level of non-cash earnings (127% accrual ratio). Market cap is less than US$10m (AU$11.5m market cap, or US$7.63m). Annonce • Apr 05
Cardno Limited to Distribute an Unfranked Special Dividend, Payable on 29 April 2024 The Board of Cardno Limited announced that it has determined to distribute an unfranked dividend of AUD 10.8 million (27.6 cents per share) to Cardno shareholders on the register of Cardno as at the record date on 11 April 2024. The Special Dividend will be paid on 29 April 2024. This distribution reflects the repatriation of USD 5.9 million of collections from Insus related to three positive legal claims in first half 2024 and the collection of $1.5 million related to the sale of Cardno International Development to DT Global Australia Pty Ltd. Prior to this distribution, the Head Office cash balance on 2 April 2024 was $12.71 million. Shares commence trading on an “ex Special Dividend” of 10 April 2024. New Risk • Aug 25
New major risk - Financial position The company has less than a year of cash runway based on its current free cash flow trend. Free cash flow: -AU$4.3m This is considered a major risk. With less than a year's worth of cash, the company will need to raise capital or take on debt unless its cash flows improve. This would dilute existing shareholders or increase balance sheet risk. Currently, the following risks have been identified for the company: Major Risks Less than 1 year of cash runway based on free cash flow trend (-AU$4.3m free cash flow). Market cap is less than US$10m (AU$13.1m market cap, or US$8.41m). Reported Earnings • Aug 25
Full year 2023 earnings released: AU$0.016 loss per share (vs AU$0.94 loss in FY 2022) Full year 2023 results: AU$0.016 loss per share (improved from AU$0.94 loss in FY 2022). Revenue: AU$11.5m (up 7.9% from FY 2022). Net loss: AU$614.0k (loss narrowed 98% from FY 2022). Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 52% per year, which means it is significantly lagging earnings. Annonce • Jul 12
Cardno Limited Announces Board Changes Cardno Limited announced that its Chair, Mr. Michael Alscher, is taking temporary leave to recover from a surgical procedure. Mr. Neville Buch will act as Michael's alternate director during this time. Neville is a partner at Crescent Capital Partners and has held Chair, CEO and director roles in both public and private companies for over 18 years. Neville was a Non-Executive Director of Cardno between November 2015 and October 2019. Neville alsoacted as Interim CEO from November 2016 to March 2018 and Deputy Chair from May 2018 to October 2019. The Board has determined that Nathanial Thomson will be Acting Chair during Michael's absence. New Risk • Jul 12
New major risk - Market cap size The company's market capitalization is less than US$10m. Market cap: AU$14.8m (US$9.98m) This is considered a major risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 23
First half 2023 earnings released: AU$0.098 loss per share (vs AU$0.91 loss in 1H 2022) First half 2023 results: AU$0.098 loss per share (improved from AU$0.91 loss in 1H 2022). Revenue: AU$6.49m (down 95% from 1H 2022). Net loss: AU$3.82m (loss narrowed 89% from 1H 2022). Over the last 3 years on average, earnings per share has increased by 68% per year but the company’s share price has fallen by 51% per year, which means it is significantly lagging earnings. Annonce • Jan 14
Cardno Limited Announces Special Dividend, Payable on December 31, 2023 Cardno Limited announced special dividend of AUD 1.70000000 payable on December 31, 2023. Record Date is July 7, 2022. Ex Date is July 6, 2022. Annonce • Nov 29
Cardno Limited Announces Second Part Payment of Distribution, Payable on as Practicable After 31 December 2022 and Before 31 January 2023 Cardno Limited announcement to the ASX on 25 August 2022 which provided an update on the Second Part Payment of the Distribution relating to the sale of Cardno International Development to DT Global Australia Pty Ltd. ("DT Global") on 30 June 2022. The company announced that: the outstanding amount required to be paid by DT Global to Cardno relating to the Transaction (which was determined following the finalisation of the net debt and working capital adjustment process under the Share Purchase Agreement) has been agreed to be paid by 31 December 2022; and the Second Part Payment (being an unfranked dividend of approximately AUD 18.9 million (AUD 0.48 per share), which has been determined to be paid by the Cardno Board) is expected to be paid to Cardno Shareholders as at the record date (being 7:00pm (AEST) on 7 July 2022) (Record Date) as soon as practicable after 31 December 2022 and before 31 January 2023. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). Executive Director Nathanial Thomson was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Annonce • Sep 27
Cardno Limited, Annual General Meeting, Nov 29, 2022 Cardno Limited, Annual General Meeting, Nov 29, 2022, at 10:01 E. Australia Standard Time. Reported Earnings • Aug 26
Full year 2022 earnings released: AU$0.94 loss per share (vs AU$0.79 profit in FY 2021) Full year 2022 results: AU$0.94 loss per share (down from AU$0.79 profit in FY 2021). Revenue: AU$23.4m (down 97% from FY 2021). Net loss: AU$36.6m (down 212% from profit in FY 2021). Over the last 3 years on average, earnings per share has increased by 58% per year but the company’s share price has fallen by 61% per year, which means it is significantly lagging earnings. Annonce • Aug 26
Cardno Limited Announces Second Part Payment of the Distribution Cardno Limited provided an update on the Second Tranche of the Distribution relating to the sale of Cardno International Development to DT Global Australia Pty Ltd. on 30 June 2022. Cardno advised that the Second Part Payment (being an unfranked dividend of approximately AUD 18.9m (AUD 0.48 per share), which has been determined to be paid by the Cardno Board) is expected to be paid before 31 December 2022 to Cardno Shareholders as at the Record Date. The previous advised timing of the Second Part Payment was September 2022. Annonce • Aug 05
Cardno Limited Announces Special Dividend, Payable on September 27, 2022 Cardno Limited announced special dividend of AUD 1.70000000 per share. Scheduled dates are as follows, Record Date of 7 July 2022, Ex Date of 7 June 2022 and Payment Date 27 September 2022. Annonce • Jul 09
Cardno Limited Announces Special Dividend, Payable on July 14, 2022 Cardno Limited announced the foreign currency exchange rates applicable to the special dividend of 78.0 Australian cents per share announced on 1 July 2022 and payable on 14 July 2022 as follows: Currency - United States Dollars, Exchange Rate - 0.6748, Dividend per ordinary share in local currency - 52.63 cents; Currency - Great British Pounds, Exchange Rate - 0.5584, Dividend per ordinary share in local currency - 43.55 pence; and Currency - New Zealand Dollars, Exchange Rate - 1.0967, Dividend per ordinary share in local currency - 85.54 cents. Annonce • Jul 08
Cardno Limited Announces Appointment of Nathanial Thomson as Executive Director Cardno Limited announced the Board has appointed Mr. Nathanial Thomson, previously Non-Executive Director of the Company, as Executive Director. Mr. Thomson has effectively acted in this role since the completion of the sale of Cardno's Americas and Asia Pacific Consulting Divisions to Santec on 9 December 2021. Mr. Thomson will not receive any additional remuneration or benefits with the terms of his appointment as a director of the Company remaining unchanged. Annonce • Jul 02
Cardno Limited Announces Special Dividend, Payable on 14 July 2022 and August 22, 2022 Cardno Limited announced special dividend of AUD 1.70000000. The dividend will be paid in two tranches as follows: AUD 0.78 per share on 14 July 2022 and AUD 0.92 per share on 22 August 2022. Ex date is July 6, 2022 and record date is July 7, 2022. Board Change • Apr 27
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. No highly experienced directors. No independent directors (3 non-independent directors). Non-Executive Director Nathanial Thomson was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Annonce • Mar 29
DT Global Australia Pty Ltd agreed to acquire Cardno Emerging Markets (Australia) Pty Ltd. from Cardno Limited (ASX:CDD). DT Global Australia Pty Ltd agreed to acquire Cardno Emerging Markets (Australia) Pty Ltd. from Cardno Limited (ASX:CDD) on March 28, 2022. Enterprise value is $56.5 million. The Transaction is subject to usual net working capital and net debt adjustment mechanisms. The Transaction is conditional on approval by Cardno Shareholders under ASX Listing Rule 11.2, to be sought at an extraordinary general meeting (“EGM”), which will be convened to approve the Transaction and other matters. The EGM is expected to be held before the end of May 2022 and Cardno having established its information technology systems on a standalone basis to a level reasonably required by Cardno International Development. Completion of the Transaction is targeted for the end of June 2022. Greenhill & Co. Australia Pty Limited acted as financial advisor to Cardno Limited (ASX:CDD). Gilbert and Tobin acted as legal advisor to Cardno Limited (ASX:CDD) and PwC Melbourne acted as accountant to Cardno Limited (ASX:CDD). Reported Earnings • Feb 28
First half 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First half 2022 results: AU$0.91 loss per share (down from AU$0.19 profit in 1H 2021). Revenue: AU$138.7m (down 5.3% from 1H 2021). Net loss: AU$35.6m (down AU$43.8m from profit in 1H 2021). Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) were also behind analyst expectations. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 47% per year, which means it is significantly lagging earnings. Upcoming Dividend • Dec 03
Upcoming dividend of AU$0.92 per share Eligible shareholders must have bought the stock before 10 December 2021. Payment date: 20 December 2021. Trailing yield: 3.4%. Lower than top quartile of Australian dividend payers (5.6%). Higher than average of industry peers (2.5%). Valuation Update With 7 Day Price Move • Oct 22
Investor sentiment improved over the past week After last week's 19% share price gain to AU$1.51, the stock trades at a trailing P/E ratio of 18.1x. Average trailing P/E is 21x in the Commercial Services industry in Australia. Total returns to shareholders of 253% over the past three years. Valuation Update With 7 Day Price Move • Oct 04
Investor sentiment improved over the past week After last week's 17% share price gain to AU$1.20, the stock trades at a trailing P/E ratio of 14.4x. Average trailing P/E is 22x in the Commercial Services industry in Australia. Total returns to shareholders of 141% over the past three years. Valuation Update With 7 Day Price Move • Sep 03
Investor sentiment improved over the past week After last week's 20% share price gain to AU$1.12, the stock trades at a trailing P/E ratio of 39.6x. Average trailing P/E is 18x in the Commercial Services industry in Australia. Total returns to shareholders of 123% over the past three years. Reported Earnings • Aug 27
Full year 2021 earnings released: EPS AU$0.079 (vs AU$0.15 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were weaker. Full year 2021 results: Revenue: AU$909.5m (down 8.0% from FY 2020). Net income: AU$32.7m (up AU$99.7m from FY 2020). Profit margin: 3.6% (up from net loss in FY 2020). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 05
Upcoming Dividend of AU$0.015 Per Share Will be paid on the 6th of April to those who are registered shareholders by the 12th of March. The trailing yield of 6.3% is in the top quartile of Australian dividend payers (5.5%), and it is higher than industry peers (2.5%). Reported Earnings • Feb 27
First half 2021 earnings released: EPS AU$0.048 (vs AU$0.13 loss in 1H 2020) The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: AU$437.5m (down 11% from 1H 2020). Net income: AU$20.9m (up AU$79.5m from 1H 2020). Profit margin: 4.8% (up from net loss in 1H 2020). Over the last 3 years on average, earnings per share has fallen by 31% per year and the company’s share price has also fallen by 31% per year. Is New 90 Day High Low • Feb 25
New 90-day high: AU$0.43 The company is up 34% from its price of AU$0.33 on 27 November 2020. The Australian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is down 5.0% over the same period. Is New 90 Day High Low • Jan 07
New 90-day high: AU$0.37 The company is up 23% from its price of AU$0.30 on 09 October 2020. The Australian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Commercial Services industry, which is up 2.0% over the same period. Is New 90 Day High Low • Nov 19
New 90-day high: AU$0.34 The company is up 6.0% from its price of AU$0.32 on 21 August 2020. The Australian market is up 7.0% over the last 90 days, indicating the company underperformed over that time. However, its price trend is similar to the Commercial Services industry, which is also up 6.0% over the same period. 