The CleanSpace Holdings Ltd (ASX: CSX) share price is up today after the company provided the market with a trading update to finish off the calendar year.
At the time of writing, the CleanSpace share price is up 4.55% at $6.90.
A quick take on CleanSpace
CleanSpace designs, manufactures and sells workplace respiratory protection equipment (RPE) for healthcare and industrial end markets.
PAPRs are specialised respirators that come equipped with blowers, filters, respirator hood or face-pieces, and breathing tube assemblies. CleanSpace’s PAPRs operate in two markets, healthcare and industrial.
How is CleanSpace performing?
In today’s release, CleanSpace advised demand is continuing to outperform previous forecasts. Given the strong trading conditions, the company is now projecting revenue in the range of $39 million to $41 million. The upgraded guidance for the period ending 31 December, reflects an increase on the $34 million to $36 million originally announced on 12 November.
CleanSpace noted that its product and regional sales mix is tracking along similar to last month’s trading update. Healthcare and industrial is reported to be at a 77% and 23% split, respectively.
Group profit margin is predicted to be between 77% to 79%, with earnings before interest, tax, depreciation and amortisation (EBITDA) around the $17 million to $19 million mark.
Consumable sales are sitting at 47% of total sales, which is at the same level recorded last year.
In addition to the financial figures, the company highlighted that its new facility in St Leonards is now operational. Production capacity is running at 7,000 units pm which equates to $100 million per year for CleanSpace.
Cleanspace noted, however, that as the world approaches a vaccine roll-out for COVID-19, its current business environment remains uncertain.
In light of this, it did not provide a guidance for the second-half of the 2021 financial year.
CleanSpace share price summary
The CleanSpace share price is up more than 54% since its initial public offering (IPO) of $4.41 back in October. Its shares have levelled in the last month, where the broader All Ordinaries Index (ASX: XAO) has taken off.
CleanSpace has a market capitalisation of $508.3 million and a price-to-earnings (P/E) ratio of 60.5.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CleanSpace Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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