COVENTRY GROUP LIMITED — Earnings Release 2023

Jul 17, 2023

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ASX RELEASE

CYG – Q4 FY23 Trading Update

18th July 2023

Coventry Group Ltd (ASX: CYG) announced today an update on the Group’s trading.

Full year FY23 Group sales of $358m, up +11.0% on the prior year and unaudited EBITDA[1] of $17m, up +9.7% on the prior year.

Robert Bulluss, Group CEO and Managing Director of Coventry Group said, “The Group delivered solid full year FY23 sales and unaudited EBITDA[1] growth.

Our strategy based on specialisation and service excellence is continuing to be resilient and has delivered a sixth consecutive year of Sales and EBITDA[1] growth.”

Note 1: All references to EBITDA are to unaudited Pre AASB16 EBITDA before Significant Items

Sales and unaudited EBITDA[1] growth

Percentage sales and unaudited EBITDA[1] growth change Q4 FY23 and YTD FY23 when compared with the prior year is shown below:

Segment	Q4 FY23 vs Q4 FY22	Full year FY23 vs YTD
	% change	FY22
		% change
Fluid Systems (FS) Sales	+15.1%	+14.1%
Trade Distribution (TD) Sales	+0.3%	+8.8%
Consolidated Group Sales	+6.0%	+11.0%
**Consolidated Group Unaudited EBITDA1 **		+9.7%

ERP upgrade project

The ERP upgrade continues to progress to plan and is on schedule and in line with budget.

Outlook

Demand remains solid from our primary end markets (mining and resources, infrastructure, commercial construction and industrial). The Group has only modest exposure to segments of the economy that are slowing, namely household discretionary expenditure and residential construction.

The Group operates in multi-billion-dollar fragmented markets and has very modest market shares. There are clear plans in place to continue to increase market share via new branch openings, branch refurbishments, product range expansion and an enhanced focus on sales and marketing.

The Board and management are committed to leveraging the scale benefits of the platform established over recent years in all parts of our business. In particular, our goal is to achieve best in-class trade distribution margins over time and to that end we have already identified a range of improvement opportunities which the business is implementing.

Given continuing market uncertainty we will not be providing FY24 guidance but will continue to provide quarterly trading updates to the market.

Authorised for release by the Board of Directors of Coventry Group Limited.

For further information contact:

Robert Bulluss Chief Executive Officer and Managing Director (03) 9205 8219

Coventry Group Ltd | ABN 37 008 670 102 | 235 Settlement Road, Thomastown Vic 3074 | Tel: (03) 9205 8223 | www.cgl.com.au