Caason Group is a significant investor in 5G Networks Ltd (ASX: 5GN).
5G Networks has reported very impressive half year results. The company has achieved dramatic growth in revenue, EBITA and nett operating cash flow. Their half year report also highlights confidence around issuing a full year dividend payment.
H1 revenue of $23.576m represents an increase of over 1900% on the previous period (FY18 H1 $1.134m). FY19 first half normalised EBITDA total is $1.385m which also highlights significant growth when compared to $94k EBITDA for the previous corresponding period. Note: first half EBITDA excludes acquisition costs and expensed option costs.
Craig Astill, MD & CEO of Caason Group, said: “5G Networks’ accelerated growth as a connectivity, cloud and managed services provider can be attributed to their exceptional team. The transition to service-based revenue and the growth in multiproduct holdings has contributed to the company’s sales success. They have signed new and existing customers to long-term contracts to the value of $13m in H1. Positively, more than 70% of their product revenues are protected by annuity-based service agreements.”
5G Networks is also investing in major network infrastructure. The 5G Networks team has been finalising significant network rollouts which will be released in H2.
Valuable acquisition activity in H1 is also a major highlight and more strategic acquisitions are on the radar. 5GN now has a robust banking facility with CBA to support current and future funding requirements allowing flexibility as their expansion activity continues. Caason Group was instrumental in facilitating this CBA partnership.
The full H1 ASX presentation, as shared with the ASX, can be found here: