Q: COULD YOU PLEASE COMMENT ON THE LATEST RESULTS. THANK YOU
5i Research Answer:
ZDC provides security and surveillance services in Canada and is now trading at 6.3x Price/Sales. In the 2Q, ZDC’s revenue grew 20% to $7.4M from $6.2M last year, driven by strong demand for security towers in Canada. Adjusted EBITDA also grew strongly by 49% year-over-year to $2.7M. The balance sheet is leveraged with a net debt of $16M and net debt/EBITDA of 4.9x. ZDC also recently issued shares to fund growth. Based on consensus estimates, sales are expected to grow by more than 30% in FY2025 and FY2026. Overall, a high growth small cap name, ZDC is currently on a solid momentum run too, and we think the company is a very interesting small cap name to follow.