ANO - ADVANCE ZINCTEK LIMITED

[byebye925]

Much has happened sine the last post in this thread. A solid quarterly result announced, upgraded but non-specific advice around possible FY profit, new ovens installed to increase production, confirmation of forward orders in hand .............. and much bouncing around of the SP.

I am invested and await the next results announcement to see if it confirms the positivity around ANO.

[blacksheep]

Every time this company puts out an ann, it make me scratch my head - they seem to be fixated on what is said on HotCopper - that's a concern, IMHO. Perhaps the release of their AR next week might shed some light on how they are travelling

 

6 August 2019 ANO Update

The Board advises that the Annual Report and related Appendix 4E and

Appendix 4G should be released to market next week.

 

The Board is pleased to advise that the current FY20 first quarter sales orders

up until today are 400% of the sales orders for the same corresponding period

for quarter one FY19.

 

The Board cannot explain the reason for the current share price decline.

 

12 July 2019 ANO Formal Price Query Response

ANO has received a Price Query from the ASX at 12:10 pm, regarding share

activity in ANO. The share price fluctuations were the results of turnover of

less than 1.3% on the total number of shares on issue over the past week.

 

The Board of ANO are not aware of any circumstances leading to the change in

the price of ANOâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s securities. The Board is not aware of any information given

by investment groups or on social media platforms, but for some comments

about selling by Directors on Hot Copper, relating to the ANO share price

decrease. There has been no trading involving any entities of any of the

Directors or Officers as we are currently in a blackout period. ANO confirms we

are complying with the Listing Rules, in particular, Listing Rule 3.1.

 

Based on unaudited management accounts, our prior announcement of 31

May 2019 is a current estimation of our anticipated result for FY19.

 

The number of orders on hand are in line with our prior announcement of 24

May 2019. Current production is sufficient to meet the orders and is on track

to deliver as planned.

 

ANO confirms that this response has gone through the required Board

approval process.

[blacksheep]

Very hard to dive down into ANO's statements because they don't do Quarterly's. Back in July last year they were exempted from quarterly reporting obligations. One can only rely on infrequent updates - which like yesterdays ann - are extremely "brief".

 

27 July 2018

ANO Released from Appendix 4C Obligations

Advance NanoTek Limited has been informed by the ASX that based on its continued strong

operating performances, it is no longer required to meet the Appendix 4C cash flow

quarterly reporting obligations.

 

The Appendix 4C released yesterday will be the last ANO 4C announced unless the ASX

decides otherwise at some future date.

[blacksheep]

Every time this company puts out an ann, it make me scratch my head - they seem to be fixated on what is said on HotCopper - that's a concern, IMHO. Perhaps the release of their AR next week might shed some light on how they are travelling

 

Indeed it did and the chart below depicts what the market reaction was. SP ended up down 29% @ $3.90/share

 

Sales revenue = $12.2mil Other income $671k. Inventories #3.3 mil

 

Net profit for FY2019 came in at $3.38 mil - a whopping tax benefit of $6.23 mil (see copy of ann dated 30/5/19 below) pushed net profit to $9.6 mil. Cash in kitty as at 30/6/19 = $352k

 

All a bit underwhelming for a company with a market cap of $230 mil - that's after the SP plunge today. Not long ago this stock had a SP of circa $7.00

https://www.asx.com.au/asxpdf/20190816/pdf/...k4rjt1093hp.pdf

 

Following hot on the heels of the FY2019 Financial results was this "ANO Investor Presentation Update August 2019" - https://www.asx.com.au/asxpdf/20190816/pdf/...k2wxc8pgbxf.pdf - consisting of 3 graphs. The 3rd graph show SP performance noting Geoff Acton's appointment is there to back up the bonus of $500k mentioned below

 

Tax Losses to be Reinstated FY19

The Board has completed its Audit Planning for FY19 with its external Auditors yesterday.

One of the issues raised by the Auditors was the current accounting treatment of ANO prior

tax losses.

 

Given the current worldwide regulatory awareness of the use of harmful chemicals, it

appears the FDA is progressively banning particular chemicals, as supply of zinc oxide is

increasing, the demand for zinc oxide should continue to grow for a number of years. In light

of this, the Board accepts the issue raised by the Auditors, that it is very likely ANO will be

profitable in future years and agree that the full amount of the tax losses should be

reinstated in FY19.

 

Again, we applaud some of our shareholders for foreshadowing this view based on all of the

current media and newspaper articles surrounding the banning and issues with the use of

harmful chemicals used in sunscreen.

 

We received an email from our tax accountants at 2:09pm today informing us that the total

tax losses to be reinstated will result in approximately $6.4 million increase in statutory

profit after tax.

 

The Board has resolved today that Mr. Geoff Acton will exercise his options for 2018 and

2019 early next week and shares will be issued to him and related parties. The Board

understand that the performance hurdles have been met for both financial years and the

Board thanks Mr. Acton for his performance and have allowed him to exercise the 2019

options 2 months early. The Board will remunerate Mr. Acton with a bonus that reflects the

exercise price of the options and this will impact the 2019 result by approximately $500,000,

reducing the net increase in statutory profit to $5.9 million and estimated total profit after

tax for FY19 will be approximately $10.5 million.

 

Still scratching my head over this one - the tone of their anns and the lack of detail

[blacksheep]

This company seems to react to everything said on Hotcopper - major red flag IMHO. Their latest announcement below

ANO Price Fluctuations

The Board would like to inform the market that the last two daysâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢ trading

fluctuations were caused by the delay in the release of the Investor

Presentation accompanying the Appendix 4E.

 

The Board would like to confirm that the Investor Presentation was submitted

simultaneously with the Appendix 4E.

 

The ASX raised a number of issues in particular, the front cover which was a

repeat of the front cover that was previously released to market in February

2019 and April 2019.

 

The Board is in the process of ascertaining the merits of the other queries

raised by the ASX with our Investor Presentation.

 

We have become aware of comments on Hot Copper today regarding the

Companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s cash position.

 

The Board is satisfied that the Company can meet all of its future obligations

and would like to refer our shareholders to the debt free status position of

ANO with over $10 million in net assets.

[blacksheep]

ANO responds to ASX's queries regarding Accounts - in particular the inventory variances

 

https://www.asx.com.au/asxpdf/20190828/pdf/...yn956v4nzdh.pdf

[blacksheep]

ANO always very short on detail. Sets out their goals for next year and then takes the opportunity to thank all their stakeholders. Presentation equally brief (see link below)

 

Market Cap circa $364 million

 

Chairmanâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Address

The significant part of the $9.6 million result in FY19 included a tax benefit of $6.3 million.

 

The current trading result for the first 3 months of FY20 based on unaudited management

accounts is showing trending increases in orders, standing at about three times the same

sales orders received for the same corresponding period last year. Obviously, there is some

delay between receiving the order and seeing the benefit in the profit and loss of the

company due to time needed for manufacturing and shipping.

 

As highlighted in our Investor Presentation released today, the Board is of the view there is

potential for further significant growth trajectory based on the current pace of initial sales

orders growth.

 

We currently see no reason why the Company will not achieve its current forecasts with in

excess of 225T of future sales orders yet to be manufactured, right now.

 

The Board has set the Managing Director specific goals for FY20.

ïâ€Å¡Ãƒ‚· To diversify revenue geographically

ïâ€Å¡Ãƒ‚· To diversify revenue by increasing the number of products the company sells.

ïâ€Å¡Ãƒ‚· Ensure manufacturing capacity is at least double the current sales order intake.

ïâ€Å¡Ãƒ‚· Extend services provided to manufacturers and brand owners to include

formulations, access to our chemist network and equipment advice.

 

I take this opportunity to thank all our stakeholders in Advance NanoTek Limited (âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“ANOâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ), in

particular,

ïâ€Å¡Ãƒ‚· Our key distributors for their support and growth in sales in our products, particularly

Deveraux Specialties who were up in excess of 110% in FY19.

ïâ€Å¡Ãƒ‚· We would like to thank Merck KGaA for their renewed support and trust in our

business, in particular the move to container orders with the first 14T expected to be

shipped in December 2019.

ïâ€Å¡Ãƒ‚· Our staff who have worked tirelessly to increase capacity to meet the 86.22% growth

in total sales in FY19.

ïâ€Å¡Ãƒ‚· I would like to thank Rade and our new Director Laurie for their contribution to the

ANO business in 2019. Laurie has already made changes to accounting policies

around stock and foreign currency transactions and assisted Geoff with the 2019

Annual Report.

ïâ€Å¡Ãƒ‚· I would like to thank our Managing Director for his hard work in FY19.

ïâ€Å¡Ãƒ‚· Finally, I would like to thank our shareholders. I appreciate their continuous input to

the company and their support of the Board and the initiatives we are trying to

implement, in particular, Brian, Chris and Giovanni the owners of Ethical Zinc, with

the most successful zinc based sunscreen on Amazon Australia, and top 100 in

sunscreen category in the US and currently developing a retail global distributor

network.

https://www.asx.com.au/asxpdf/20191025/pdf/...w0lk0qqlcv2.pdf

[nipper]

I'm finding it hard to see the niche benefit if this is what this outfit does:

Advance NanoTek Limited (ANO, formerly Advanced Nano Technologies Limited) is engaged in the production and distribution of zinc oxide dispersions and aluminum oxide powders for the personal care sector in Australia, New Zealand, and internationally. The company offers dispersions of mineral-only UV filters in cosmetic emollients used for sunscreen, skincare, and pharmaceutical formulations, as well as alumina plate-like powders used for cosmetic applications. Its two primary products are ZinClear and Alusion.

Zn oxide for sunscreen, and Al oxide for deodorant. Doesn't the majority, the Chemist Warehouse crowd, buy on price?

 

Yes, alternative natural ingredients (slide 4, there is no #3) command a premium but rarely become mainstream (except amongst the Balmainstream)

[blacksheep]

From what I understand their "special" nanoparticle zinc cream is transparent - not the usual white/pink thick creams - and it's "reef safe" But, yes, I cannot work out why the have a market cap of $364 m. They are also developing zinc for use in batteries. Perhaps a lot of future potential built into the SP

 

If you look at an earlier post of mine, it explains three of ANO's substantial shareholders have branched out into their own business - using ANO's special zinc - the company is called Ethical Zinc - https://ethicalzinc.com/pages/learn-about-zinc Just sounds too cosy for my liking. Particularly when one of the shareholders is a HC poster

[blacksheep]

Up 12.52% on todays news

 

Record Monthly Result

Orders for US $500,000 of our unique dispersions were received over the last

24 hours and approved for production today. The Board of ANO also advises

today that it will achieve a profit before tax of approximately $1 million for the

month of November, which is a record for ANO. At this stage ANOâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s sales

orders are still currently approximately three times greater than the same

corresponding period last year. The increase to accounting profit will be

positively impacted with the increase in sales orders, however, there is some

delay between receiving the order and the timing of production and shipment.

 

https://www.shortman.com.au/stock?q=ano