Experience Co’s Share Price Surges by 26.92%

Earlier today, shares of Experience Co Ltd [ASX:EXP] were up by 26.92%, to 33 cents per share. They are now trading at 32 cents.

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Experience Co’s share price pushes higher

Experience Co Ltd, an adventure tourism and leisure company, announced financial results for the half year ended 31 December 2018. Experience delivered underlying EBITDA (earnings before interest, tax, depreciation and amortisation) of $17.3 million (1H18: $13.2 million). It also reaffirmed guidance of $30 million to $33 million underlying EBITDA for the Financial Year 2019.

What’s up next for Experience Co’s share price?

The share price reacted positively to the news:

 

Experience Co Ltd share price

Source: CommSec

Experience has been in a downtrend for the past year. The company experienced tough financial numbers on the back of poor weather and unfortunate fatalities. That said, given the corporate restructure, the business is heading in the right direction now. The share price surged more than 25% as a result today.

Experience Executive Chairman Bob East told the market:

The business is in a strong position and the leadership changes are expected to deliver improved operational and financial performance for FY19 and beyond. The skydiving business has delivered solid results in the first half of the financial year and volumes are expected to continue to stabilise into the second half of FY19. The Group is well positioned in major tourism hubs in Australia and New Zealand.

The financials and balance sheet are improving.

That’s good news for shareholders.

If the company hits its FY19 targets, the share price could potentially move towards the 60-cent level in the months ahead. But there’s no guarantee that will happen. It depends on the weather, among other things. But, with the share price heavily sold off, it could offer a good opportunity at these prices.

From its origins in Wollongong NSW in 1999, Experience provides skydiving experiences in 16 locations across Australia and three locations across New Zealand. The company also offers white water rafting, hot air ballooning, canyoning, boat tours and helicopter tours to the Great Barrier Reef in North Queensland.

Regards,

Jason Stevenson,
Resources Analyst, Money Morning

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Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. 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. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:


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