Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    • News

  • Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    • News

  • EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    • News

  • RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    • News

  • BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    • News

  • AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    • News

  • Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    • News

  • Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    • News

  • FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    • News

  • Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    • News

Domestic tourism meets sharing economy as Camplify aims to list with $58m IPO

  • In News
  • June 15, 2021
  • Bronte Moore
Domestic tourism meets sharing economy as Camplify aims to list with $58m IPO

While the future on when Aussies can holiday overseas remains unclear, one company is seizing the opportunity that has now become the norm since the pandemic, domestic tourism.

Camplify (Proposed ASX code: CHL), is an online platform which connects owners of campervans, caravans, and motorhomes to keen outdoor holidaymakers, renting them out in a similar way to how owners of houses list them through Airbnb.

After beginning seven years ago, the platform has since become heavily established in the RV rental marketplace, facilitating the transactions of over 50,000 bookings and 1.5 million overnight stays to date. The company, which makes a commission on the transactions, has distributed over $35M to the owners of recreational vehicles across Australia and internationally, including NZ, UK and Spain.

The company reports that pandemic conditions have ‘fast-tracked’ their growth. The popularity, and necessity, for RV holidays in Australia saw an estimated 14 million last year. It seems that hirers are also consistently spending more on the total booking value of the trip, with the average value forecasted to be $1,002 this financial year, up from $793 two years ago.

The growth in the industry has been reflected in the company’s financial performance. The company’s revenue grew by 131% from FY20 to this year’s forecast, after previously growing 81% year on year from FY19. While their revenue growth has been significant, it is also notable that their gross margin percentage has stayed within 1% of previous years across the same period, calculated as their gross profit of revenue hovering around 70%.

Additionally, the impressive jump in Camplify’s revenue has not been able to offset their forecasted pro forma loss for the FY2021 period of $3.3M, recording similar losses of $3.2M and $2.2M in FY20 and FY19 respectively. Additionally, while the company’s cost of sales is forecasted to be lower, as a percentage of revenue, from FY20, their operating expenses grew by $2.7M, attributable to increases in employees, marketing, and operating expenses respectively.

Because of the nature of such peer-to-peer business models, there is huge operational reliance placed on the platform. Camplify needs owners to continue to put their vehicles on the platform, and hirers will have to keep wanting to pay to use them. As international travel eventually returns as an option for Aussies, a return to the pre-pandemic popularity of domestic RV holidays must be considered.

Of the cash proceeds received under the offer, a considerable 67% is proposed to be used for pursuing growth strategies and investing in the Camplify business model. Expansion costs around product development are estimated to make up $2.6M (23%), with the remaining 11% allocated toward costs of the offer.

The company is due to list on the exchange on June 28, with the offer expected to close June 18. Camplify is looking to raise $11.5M at an offer price of $1.42 per share, which would give the company an indicative market cap of just over $58M. Morgans Corporate Limited are acting as lead manager on the deal which is fully underwritten.

  • About
  • Latest Posts
Bronte Moore
Bronte Moore is a business journalist at Emerald Financial whilst also completing a JD at the University of Melbourne.
Latest posts by Bronte Moore (see all)
  • This small biotech is the definition of a quiet achiever, here’s why it might be time to tune in - November 25, 2021
  • New CEO flags 100-day plan for Crowd Media’s conversational AI platform - October 19, 2021
  • Healthia emerges as largest physiotherapy provider with $88m acquisition, more growth still to come - September 22, 2021
  •  
  •  
  •  
  •  
  • airbnb
  • campervans
  • camplify
  • caravans
  • chl asx
  • IPO
  • ipo watch
  • motorhomes
  • RV
  • tourism
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Bronte Moore
Bronte Moore is a business journalist at Emerald Financial whilst also completing a JD at the University of Melbourne.
Latest posts by Bronte Moore (see all)
  • This small biotech is the definition of a quiet achiever, here’s why it might be time to tune in - November 25, 2021
  • New CEO flags 100-day plan for Crowd Media’s conversational AI platform - October 19, 2021
  • Healthia emerges as largest physiotherapy provider with $88m acquisition, more growth still to come - September 22, 2021

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Bronte Moore
Bronte Moore is a business journalist at Emerald Financial whilst also completing a JD at the University of Melbourne.
Latest posts by Bronte Moore (see all)
  • This small biotech is the definition of a quiet achiever, here’s why it might be time to tune in - November 25, 2021
  • New CEO flags 100-day plan for Crowd Media’s conversational AI platform - October 19, 2021
  • Healthia emerges as largest physiotherapy provider with $88m acquisition, more growth still to come - September 22, 2021
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.