Coventry Group.
Coventry Group | ASX code: CYG | Current share price (14/03/2015) $1.84
The company was founded in 1920 by My RJ Kyle who was operating a small motor accessory business in Perth.
The business was sold then renamed and was listed on the ASX in 1966 as Coventry Motor Replacements.
In the 1980's the company made a number of acquisitions and extended it operations into bearings, gasket & fasteners industry.
At present the business operates as Coventry Group and employs about 800 people with a network of 70 branches & distribution centres.
It distributes industrial products, fasteners, fluid hydraulics and cabinetry hardware as well as manufacture and distribute gaskets.
The Coventry Group have four distinct businesses that trade as:
- Konnect Shop (formally Coventry Fastners)
- Cooper Fluid Systems
- Artia
- AA Gaskets (NZ Gaskets in New Zealand)
They also have two smaller Technology based businesses:
- Management System Services
- Multipro IT
So that's a wrap of the company according their website.
Upon 'Googling' Coventry Group a few things stood out to me. The business name and logo are familiar (but I had no idea what they actually did) and a post from the Motley Fool website also grabbed my attention.
Why Coventry Group is down 17% today
Why Coventry Group is down 17% today
The article explains the company is struggling in more ways than one.
Its closing two distribution centres, cutting 100 jobs and its divesting its IT business because its loosing money.
Like many company's that supply directly to the resource sector they have been hit hard. This is an issue for the 2015 Annual Report however as it the article was produced in Feb 2015.
The 2014 Annual Report doesn't look that crash hot though. At a quick glance-
Cooper Fluid Systems- Sales are down 19% as a direct affect by the reduced spending of the large mining company's.
Artia- Sales are down 22% which is the consequence of the planned exit from the 'furniture' side of the business.
AA Gaskets- Sales are up 1%
Even to the 'untrained eye' of a first year, first semester uni student, 2014 did not look like a great year for the Coventry Group.
My thoughts........
How did the dividends per share remain the same for last three years even thought there has been a significant decrease to the company's profit?
Remuneration report- WOW!!!!!
Im looking forward to doing some more in depth research on the company and its varied businesses.
1 comment:
Natasha
Your firm looks really interesting ... the first thing to do is to get a very clear idea of what you firm actually does ... and does not do ... what exactly does your firm do, in your own words ... in just a few simple words we can all understand? Martin
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