ASX:CHL
Camplify Holdings Ltd
Investment Summary
The fund managers believe that Camplify Holdings Ltd (CHL) has shown impressive growth, with reported 1H FY24 GTV and revenue growth of +93.6% and +95.4% respectively. Additionally, the integration of the PaulCamper business is expected to streamline operations and enhance growth potential in Europe, allowing for increased take rates and booking volumes. However, despite these positives, there are concerns regarding the challenges associated with the PaulCamper acquisition, which may undermine CHL’s financial stability. The fund managers acknowledge the issues as potentially temporary, yet they prefer to adopt a cautious stance for the time being. They recognize the significant upside if management successfully executes their strategy, particularly with its upcoming global rollout of the MGA Myway division and the recent acquisition of Rent a Tent, further solidifying its market position. Ultimately, while the core model remains attractive, the fund managers are opting to observe rather than invest actively at this stage.
Commentary From The Managers
Saville Capital
31 May 2024
$1.45
- Saville Capital sold their investment in Camplify (CHL) following a disappointing update regarding the integration of its PaulCamper business.
- Despite being attracted to the model and financial metrics of Camplify's core business, particularly in Australia/NZ, concerns arose from the PaulCamper acquisition.
- There is potential for integration issues to be temporary, along with significant upside if management successfully executes their plans.
- However, Saville Capital has chosen to be cautious based on past experiences with major acquisitions causing persistent problems.
- The fund manager prefers to observe the situation from a distance rather than participate in the current journey.
Saville Capital
28 Feb 2024
$2.25
- Camplify Holdings Ltd (CHL) reported a significant growth in 1H FY24 with GTV and revenue up by 93.6% and 95.4% respectively.
- Gross margins improved from 58.1% to 61.4%.
- Total bookings increased by 59.0% on a year-on-year basis.
- The number of RVs on the platform rose by 19.7% to 29,388.
- Despite these gains, CHL posted a modest EBITDA loss of - $1.4m, attributed to seasonal factors.
- CHL has successfully integrated the PaulCamper business into its global OnePlatform, enhancing operational efficiency.
- This integration will facilitate improved management of European markets with standardized technology.
- CHL aims to increase take rates and booking volumes through the rollout of products like Premium Membership in these new markets.
- A key focus remains the global rollout of the MGA Myway, set to complete in FY24 for Northern Hemisphere and 1Q FY25 for Southern Hemisphere.
- This new division is expected to enhance CHL’s core marketplace and facilitate insurance product retailing beyond its customer base.
- Recently, CHL acquired the “Rent a Tent” business, positioning itself strongly in festival and event accommodation solutions.
- Despite a solid performance, CHL's share price dropped initially by -25%, showcasing the volatility often found in micro-cap markets.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.