GBST Holdings Share Price Falls 4.97% after Media Release

GBST Holdings Share Price Falls amp

GBST’s share price has suffered after the company has had to reset several aspects of the business.

Shares of GBST Holdings Ltd [ASX:GBT] are currently trading at $2.10 in today’s market, down 4.97% at time of writing.

Poor Full year results affecting GBST Holdings Share Price

GBST’s financial results for the full year ending 30 June 2018 proved troubling for the company, and this along with resting several aspects of the business, is most likely contributing to its falling share price.

Net profit after tax was down 10.5% to 6.2 million, with full year operating EBITDA (earnings before interest, taxes, depreciation and amortisation) before R&D down 7.2% to $20.2 million, which was offset by a 9.4% increase in the second half, at $10.5 million.

Will GBST Holdings share price recover?

Despite GBST’s full results proving underwhelming, it’s not all doom and gloom, considering the second half year results showed a stronger revenue performance, which could potentially underpin future growth and bounce GBST’s share price in good time.

Managing Director and ECO Mr Rob DeDominicis commented on the momentum cross key financial measures for the second half, and the progress on its R&D program:

While full year earnings were down slightly on FY17, the second half of FY18 was a stronger six months for GBST. During FY18, we reset serval aspects of the business including an upgrading of skills and experience in the executive team, organisation and operating model restricting and improvements to business systems and processes. We also focused on reducing operating costs where possible and all of these things together put GBST in a much better place to take advantage of future growth opportunities.

Free Report: Discover four red hot ASX profit plays for 2018. Read Now

In other news, GBST’s three year strategic R&D Program is now live in the market, and was on time and on budget this year at $14.7 million. Along with this, the program met technical feasibility and progress milestones.

And their new digital and web integration solution, catalyst, has been really well received in the market.

This, along with optimising future growth opportunities could aid in some damage control for GBST’s share price.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

 

PS: Our Aussie finance expert Sam Volkering reveals the four Aussie stocks he believes could be top performers in 2018. Get your free report now: ‘The Four Best ASX Stocks For 2018’.  

Ryan Clarkson-Ledward

Ryan Clarkson-Ledward

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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