General Auto & light Truck Repair
We are joined today by RPM automotive CEO, Clive Finkelstein. Clive, Yeah, Look, you've had some pretty impressive results in the first half. Give us the load on what's been going on. Yeah, well, RPM's just released its half year results. Our revenue was up by 86% year on year with revenue after eliminations of $34. 4 million. Our EBITDA was up 63% year on year with a $3. 1 million EBITDA n So we're quite happy with the performance of the business. The Q2 was significantly better than Q1 and the recovery seems to be continuing into Q3 as well. Yeah, it certainly looks impressive. Let's just drill down into the n In terms of financials, can you tell us a bit more about what's going on with balance sheets and in particular with cash flow as well? Our inventories were up 60%, $7 million to $18 million. Our receivables increased to $12 million. Our payables are $13 million. So the net differential between receivables and inventory is significantly more than payables. And our total assets increased by $20 million, which resulted in a 23% increase in shareholders' equity. As far as cash flow is concerned, well, obviously with that sort of investment cycle, we have a negative cash flow from operating activity of $1. 2 million. But we're not terribly upset with that, with the investments we've made and with the growth of the company. Obviously, it's a metric we understand that we're being scored upon, and we will work to improve that to try and get it back to zero or into the green, but certainly not at the expense of the growth and development of the group. All right, that's financials. One acquisition in particular that I want to ask you about is Safety Day. That looks to have been a pretty important one for you. Well, it's an interesting one because, yes, it's in our performance and accessory space. It is a very similar kind of business to what we do in terms of the fact that it's accessories. The very different spin on it is that Safety Day exists in the original equipment space, whereas our performance and accessories businesses are very much in the aftermarket space, which means that we've got the opportunity of a cross-channel selling potential, which means that hopefully we can sell Safety Day products into the aftermarket, and Safety Day can help us sell our products into the OEMs. We've already begun investigating these opportunities, and initially it looks very, very favorable. So we're quite excited about not just what we've bought, but the opportunity that we've bought as well. Yeah, certainly does look interesting. All right, how is all of this impacting your outlook for the full year? What's the forecast So we've forecasted a revenue of $78 million, which is significantly up on last year. Last year we did $45 million on, and we are forecasting an EBITDA n We're quite confident that those are more than achievable. Great, good. All right, we look forward to catching up with you in the next few months and finding out how all of this is playing out. But for now, thank you very much. Thank you for your time. Look forward to speaking to you again.
