- Aviation tech firm Structural Monitoring Systems (SMN) has put some solid numbers on the board despite trying market circumstances
- The company and its subsidiary, Anodyne Electronics Manufacturing (AEM), have performed strongly amid unprecedented disruption to the global aviation industry
- AEM posted a year-on-year increase of 10.7 per cent in revenue, and a 24.6 per cent increase in normalised earnings
- Overall the group closed the year with $2.113 million cash on hand — a considerable achievement in the current climate
- SMN is also progressing well with regulatory approval for its CVM and 2ku Wi-Fi systems
- SMN could prove to be one of the few aviation-related companies to remain bankable through the crisis
- Structural Monitoring Systems is trading 18 per cent higher today, with shares priced at 59 cents
Aviation tech firm Structural Monitoring Systems (SMN) has put some solid numbers on the board despite trying market circumstances.
Strength in adversity
The company and its subsidiary, Anodyne Electronics Manufacturing (AEM), have performed strongly amid unprecedented disruption to the global aviation industry.
AEM posted $18.961 million in yearly revenues — a year-on-year increase of 10.7 per cent.
$1.85 million of that was generated in June alone, demonstrating the company’s resilience despite tough market conditions.
Normalised earnings of $4.4 million for the year eclipse the prior year’s mark by 24.6 per cent.
The company finished the year with almost $1.4 million cash on hand, considerably bolstering the SMN Group total which landed at $2.113 million all up.
AEM is planning to ramp up its efforts in the coming year, with a projected three per cent increase to its research and development spend as it brings a suite of new products to market.
Sales for the first quarter of the new financial year are already looking better than those of 2020, so the company may be carrying some optimism about its product launches later in the year.
SMN is also progressing towards the rollout of its proprietary CVM technology, which can monitor aircraft fatigue and cracking in real-time.
The company continues to log the necessary data and paperwork with U.S. aviation authorities ahead of the system installation in selected aircraft for further testing — slated for later this month.
If things continue on schedule — pending Federal Aviation Administration (FAA) approvals — the system should be ready for commercial rollout by the end of 2020.
Similarly, the approval of the 2ku Wi-Fi system is on a similar path, with all stage three, and some stage four, permitting submitted to the FAA.
Parts production has begun ahead of installation in select aircraft for testing.
Outlook
Given the unforeseen and arduous aviation landscape globally this year, the fact SMN and AEM have been able to progress and grow is testament to the robustness of their tech and unique market position.
With the pending approvals and seemingly imminent rollout of new products set for completion in the 2021 financial year, SMN could prove to be one of the few aviation-related companies to remain bankable through the crisis.
Structural Monitoring Systems is trading 18 per cent higher today, with shares priced at 59 cents as at 3:05 pm AEST.