Daily Brief Australia: Millennium Services Group Ltd, Pointerra Ltd and more

In today’s briefing:

Millennium Services Group Ltd – Gross Margin Pressures Offset Slightly by Higher Revenue
Pointerra Ltd – Selected for a 10-Year US Energy CAPEX Programme

Millennium Services Group Ltd – Gross Margin Pressures Offset Slightly by Higher Revenue

Millennium Services Group Ltd (ASX:MIL) has provided an update on Q4 FY23 revenue, cash flow from operating activities, and the H2 FY23 gross margin. MIL delivered 8.0% (RaaS 9.6%) revenue growth in Q4 FY23 and 2.0% over FY23 on the back of new contract wins and wage inflation. Q4 FY23 cash flow turned positive with the group ending FY23 with just $1.2m net debt.
The H2 FY23 GP% came in below implied guidance and RaaS estimates at 14.4% against ~15.9% forecast, attributed to wage pressure in a tight labour market.
While most contracts have an annual contract adjustment clause for wage increases, the timing and magnitude of recent award increases is proving difficult to manage.

Pointerra Ltd (ASX:3DP) provides a powerful cloud-based solution (Pointerra3D) for managing, visualising, analysing, using, and sharing massive 3D point clouds and datasets.
Pointerra3D is a proprietary digital twin SaaS platform which delivers predictive digital insights and definitive answers to complex physical asset management questions.
The Pointerra3D suite of solutions spans target sectors including survey and mapping; architecture, engineering and construction (AEC); utilities; transport; resources and defence and intelligence. Pointerra has announced that it, together with its US engineer, procure and construct (EPC) partners, have been chosen by existing customer US energy giant Entergy (NYSE:ETR) for its 10- year, US$15b grid resilience CAPEX programme.

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