Nearpam Ltd. (ASX:NEA) has announced a promising update to its FY2015 results, expecting another strong year of growth.
Nearmap is headquartered in Sydney as was founded in 2000. The company is a market leading aerial photography business providing geospatial map technology for the building and construction, architectural, defence, and utility industries. Its technology enables high resolution imagery to be updated regularly enabling clients to make decisions quickly and efficiently. Whilst predominantly Australian based, Nearmap has continued to grow their US client base as its first capture programme exceeded expectations and first commercial sales have come in ahead of market guidance. The company has recently established several operations throughout the US and now has approximately twenty employees working in the US.
The company is expecting revenues of $23million for FY2015 for the Australian business, which represents a 28% growth from FY2014 revenues of $17.8 million. Combined with the upgraded revenue forecasts, Nearmap has also received a cash refund of $1.8miilion for eligible research and development activities under the Government R&D Tax Incentive Scheme. The refund represents 45% of eligible research conducted by the company is FY2014. The company’s net cash balance at the end of FY15 was $17million, however as of today has grown to $19million as a result of the Government R&D refund. Nearmap upholds its Australian revenue target of $50million by December 2015 and its US revenue target of AU$30-$50million by December 2017. The companies FY2015 results will be released by 25 August 2015.
Nearmap’s share price has seen significant growth since late 2012, however the last twelve months has shown some volatility. Looking more specifically at 2015, the share price has remained somewhat flat and is currently trading at 62cents. Following today’s announcement the company’s share price has fallen 3.15%, however this is more than likely a reflection of poor market conditions.
Author: Ben Visser
Jul 06, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.