The Newswire

Your daily serving of financial goodness

Skydive the Beach Shares Jump Sky High

Skydive the Beach Shares Jump Sky High
Mar 27, 2015 By Wise-owl

Shares of Skydive the Beach Group Ltd. (ASX:SKB) have soared well above the IPO price of 25c per share on Friday. SKB opened at 31c and jumped as high as 36c per share, before retreating to 34.5c per share in the last hour of trading. The already profitable company boosted investor confidence after it announced that it expected to pay an initial dividend by October of this year.

 Skydive the Beach began in Wollongong in 1999 and has expanded to include 11 drop zones in 4 states. In the last financial year, the company had more than 40,000 tandem skydive jumps. The IPO will also allow for an acquisition of Australia Skydive, which will expand the company by 16 drop zones and an additional 112,000 tandem jumps. Revenue is forecasted to increase dramatically from $18m from last year to $26m this year. Revenues are expected to surpass $47m in the 2016 financial year. Earnings before interest tax, depreciation and amortisation (EBITDA) are expected to increase from $4.5m to $6.2m this financial year.

 Anthony Boucaut, Skydive the Beach founder and chief executive, said he found his inspiration after seeing jumpers land in the famous Playa del Carmen beach. “It just looked like an amazing experience. We were used to the driving a couple of hours out into the sticks to land in a paddock,” he said. Mr. Boucaut was also concerned with the conditions of the equipment that some companies had been using, which gave rise to his new skydiving company. Chief executive Boucaut will hold about 180 million shares of the company, valued at around $45m. He has agreed to not sell his stake of the company for two years.

Share this article

Wise-owl Author: Wise-owl Mar 27, 2015

China continues its onslaught as it targets the wine industry

Treasury Wine Estate (ASX: TWE) shares slid approximately 15% yesterday when the China wine dumping investigation was announced.

Author: Trevor Hoey Aug 19, 2020


Sign Up for Free Trial
Recent Tweets
Recent News