BWP Trust (BWP):
BWP Trust expects rent reviews to contribute to earnings this year after reporting a rise in profit on the back of revaluation gains. The trust (BWP), which owns warehouses leased to Bunnings, also said it was considering its options for properties that were being vacated by the Wesfarmers-owned hardware giant. On the back of rent growth from the existing portfolio, revenue rose 2 per cent to $76.9 million in the six months to December, compared with the previous corresponding period. The trust said rent reviews would contribute “incrementally” to property income over the six months to June 30, with 41 leases set to be reviewed by a fixed percentage increase or CPI. Another five Bunnings Warehouses will have market rent reviews by the end of June.
Carsales.com Limited (CAR):
Carsales booked 11 per cent profit growth in the first half to $60.9m and has upped its interim dividend 10 per cent to 20.5c in its results announcement this morning. “We expect our domestic adjacent businesses to continue to build scale and breadth consistent with first-half FY18 and our premium listing and depth products to continue growing well” said managing director Cameron McIntyre.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia has set aside $375 million for a potential fine and $200m for compliance work stemming from allegations it breached anti-money laundering laws more than 50,000 times. It came as CBA today posted a half-year cash net profit of $4.74 billion, down 1.9 per cent from the year before and below analysts’ forecasts. Statutory net profit came in at $4.9 billion for the six months through December — a flat result compared to the same time a year earlier. Excluding the provisions from the result would have seen the bank report a 6 per cent increase in interim profit. The bank (CBA) said the $375m provision was “a reliable estimate of the level of penalty that a court may impose” and was backed by legal advice.
Cimic Group Limited (CIM):
Construction and engineering contractor Cimic Group said annual profit rose by 21 per cent as revenue increased from all its core businesses, while forecasting a further rise in earnings in the year ahead. Cimic (CIM) reported a net profit of $702.1 million for the year through December, up from $580.3 million a year earlier. It forecast earnings of $720 million to $780 million in 2018. Directors declared a final dividend of 75c a share, up 21 per cent on year. Cimic is majority owned by Germany’s Hochtief, which is controlled by Spain’s Actividades de Construccion y Servicios.
Genworth Mortgage insurance Australia Limited (GMA):
Genworth Mortgage Insurance Australia, a provider of insurance to lenders against the risk of borrowers defaulting, said it will continue buying back shares this year as it looks at options for excess capital. The company recorded an annual net profit of $149.2 million, a drop of 27 per cent from $203.1m in 2016. The declines came as Genworth Australia’s gross written premium for the year declined 3.4 per cent to $369m, its net earned premium fell by 18 per cent to $370.5m and new insurance written was down 10 per cent to $23.9m.
MG Unit Trust (MGC):
Troubled dairy producer Murray Goulburn has delivered a heavy loss in its half-yearly results, impacted by a number of milk suppliers ceasing to supply the company, which was partially offset by efforts to reduce costs. The group booked an after tax loss of $27.5 million for the six months to 31 December, narrowing the $31.9m loss it posted for the same period a year prior. It comes after the company announced in October it would cut 60 jobs as a result of a reduced dairy supply. The loss for the half included derecognition of the Group’s deferred tax balances relating to temporary differences, resulting in a one-off tax charge of $62.7m. Murray Goulburn (MGC) recorded a net profit before tax of $35.1m for the half, up from a net loss before tax of $47.8m in the same period last year.
Macquarie Group Limited (MQG):
Bell Potter thought yesterday was the time to buy Macquarie Group shares, or as it told clients: "a great opportunity to invest in this cash and growth story". The broker has a "buy" recommendation on the shares and a $109.50 price target. Macquarie upgraded its guidance on Tuesday and based on reported net profit of $2.2 billion in 2017, the revised guidance implies $2.4 billion in 2018 which appears to be consistent with consensus. The stock rebounded to $101.05.
Myer Holdings Limited (MYR):
Retail billionaire Solomon Lew has kickstarted his campaign against Myer for 2018 by demanding another, current copy of the Myer shareholder register and will call an extraordinary general meeting to tip out the entire board and appoint its own directors to rescue the ailing department store. It means a renewal of hostilities between Mr. Lew and the nation’s largest department store which dominated much of last year as the two camps traded barbs, accusations and legal threats in a public brawl that became increasingly bitter as it dragged on.
Nick Scali Limited (NCK):
Furniture retailer Nick Scali has brushed aside the ills of the Australian retail sector to post a 15 per cent increase in half-year profit to $23.5 million, driven by higher sales across its network of stores and its ongoing store expansion program. However, it did experience some of the volatility in December and January that has crunched earnings for other retail chains, saying product order growth had turned negative in January. The furniture retailer has also added to its boardroom strength this morning, announcing the appointment of a new director, Stephen Goddard, who is currently on the board of JB Hi-Fi, GWA and Accent Group and who is the former finance director and CFO of department store David Jones.
Rio Tinto Limited (RIO):
Rio Tinto is gearing itself for rising wage pressure in Australia and its other host nations after reporting a 69 per cent rise in full-year profits and paying out record dividends to shareholders. The $US8.6 billion underlying profit reported on Wednesday was Rio's best result since 2014, and it allowed the Anglo-Australian miner to beat market expectations with a $US2.90 full-year dividend and lower than expected debt. With the mining sector set to report much improved profits this month, Rio chief executive Jean-Sebastien Jacques said workers would want their share of those profits. "We expect across all the geographies the cost of the salaries to go up, and therefore for us the mine to market productivity agenda is so important because we need to make sure that we have momentum to more than offset inflation," he said, adding that wage inflation was just one aspect of broader cost increases in the resurgent mining sector.
Specialty Fashion Limited (SFH):
High-profile businessman Geoff Levy is believed to be backing a partial buyout proposal of Specialty Fashion Group led by its former chief executive Gary Perlstein, in a deal that may provide a desperately needed lifeline to the struggling retailer. The Australian believes the company’s co-founder and former director, Ian Miller, is also involved. Mr. Levy now runs advisory firm Monash Private Capital, but he previously chaired Specialty Fashion Group, retiring from the board in 2015. He was also the former chairman at the Australian operations of Investec bank, and has been the director of numerous high-profile companies, including Ten Network, Rebel Sports, Hoyts, Freedom Furniture, STW and Mirvac. The understanding is that Mr Levy and Mr Perlstein, who was chief executive at SFG for 14 years, have put forward an offer to buy City Chic within the retailer’s stable — said to be by far the most lucrative of its brands, which also include Millers, Katies, Rivers, Crossroads and Autograph. Currently, SFG is swarming with advisers as it fights for survival amid a tough retail environment.
Slater & Gordon Limited (SGH):
Troubled law firm Slater & Gordon has unveiled a major overhaul in which it will offload several practice areas and refocus its business under a new chief executive, John Somerville, formerly a top executive at KPMG. Mr. Somerville, who is a former national managing partner of KPMG’s advisory practice, replaces Slater’s current chief executive, Hayden Stephens who is leaving the business but remaining on the board as a non-executive director. Slaters, which is now owned by a New York based hedge fund, will downsize its general law business by winding down or divesting the practice areas of succession, criminal and family law.
Wisetech Global Limited (WTC):
WiseTech Global acquired Belgian logistics solutions provider Intris, the latest deal in a bolt-on strategy that has WiseTech up to $14.53, an increase of nearly 5 per cent today. The Australian group is spending up to €11 million ($17 million) including earn-out potential. RBC Capital Markets saw the deal as being favourably received albeit not material on a stand-alone basis. Intris had 2016 annual revenue of $7.1 million and EBITDA of around $1.1 million. It will be consolidated from March and the acquisition brings customers Panalpina World Transport, Bollore Netherlands, Rhenus, Gosselin Support Services and AML. The business services freight forwarding, customs management and warehousing management activities. Richard White, the founder of WiseTech said Belgium is "one of Europe's largest and most important trade gateways".
(Source: AIMS)
BWP Trust expects rent reviews to contribute to earnings this year after reporting a rise in profit on the back of revaluation gains. The trust (BWP), which owns warehouses leased to Bunnings, also said it was considering its options for properties that were being vacated by the Wesfarmers-owned hardware giant. On the back of rent growth from the existing portfolio, revenue rose 2 per cent to $76.9 million in the six months to December, compared with the previous corresponding period. The trust said rent reviews would contribute “incrementally” to property income over the six months to June 30, with 41 leases set to be reviewed by a fixed percentage increase or CPI. Another five Bunnings Warehouses will have market rent reviews by the end of June.
Carsales.com Limited (CAR):
Carsales booked 11 per cent profit growth in the first half to $60.9m and has upped its interim dividend 10 per cent to 20.5c in its results announcement this morning. “We expect our domestic adjacent businesses to continue to build scale and breadth consistent with first-half FY18 and our premium listing and depth products to continue growing well” said managing director Cameron McIntyre.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank of Australia has set aside $375 million for a potential fine and $200m for compliance work stemming from allegations it breached anti-money laundering laws more than 50,000 times. It came as CBA today posted a half-year cash net profit of $4.74 billion, down 1.9 per cent from the year before and below analysts’ forecasts. Statutory net profit came in at $4.9 billion for the six months through December — a flat result compared to the same time a year earlier. Excluding the provisions from the result would have seen the bank report a 6 per cent increase in interim profit. The bank (CBA) said the $375m provision was “a reliable estimate of the level of penalty that a court may impose” and was backed by legal advice.
Cimic Group Limited (CIM):
Construction and engineering contractor Cimic Group said annual profit rose by 21 per cent as revenue increased from all its core businesses, while forecasting a further rise in earnings in the year ahead. Cimic (CIM) reported a net profit of $702.1 million for the year through December, up from $580.3 million a year earlier. It forecast earnings of $720 million to $780 million in 2018. Directors declared a final dividend of 75c a share, up 21 per cent on year. Cimic is majority owned by Germany’s Hochtief, which is controlled by Spain’s Actividades de Construccion y Servicios.
Genworth Mortgage insurance Australia Limited (GMA):
Genworth Mortgage Insurance Australia, a provider of insurance to lenders against the risk of borrowers defaulting, said it will continue buying back shares this year as it looks at options for excess capital. The company recorded an annual net profit of $149.2 million, a drop of 27 per cent from $203.1m in 2016. The declines came as Genworth Australia’s gross written premium for the year declined 3.4 per cent to $369m, its net earned premium fell by 18 per cent to $370.5m and new insurance written was down 10 per cent to $23.9m.
MG Unit Trust (MGC):
Troubled dairy producer Murray Goulburn has delivered a heavy loss in its half-yearly results, impacted by a number of milk suppliers ceasing to supply the company, which was partially offset by efforts to reduce costs. The group booked an after tax loss of $27.5 million for the six months to 31 December, narrowing the $31.9m loss it posted for the same period a year prior. It comes after the company announced in October it would cut 60 jobs as a result of a reduced dairy supply. The loss for the half included derecognition of the Group’s deferred tax balances relating to temporary differences, resulting in a one-off tax charge of $62.7m. Murray Goulburn (MGC) recorded a net profit before tax of $35.1m for the half, up from a net loss before tax of $47.8m in the same period last year.
Macquarie Group Limited (MQG):
Bell Potter thought yesterday was the time to buy Macquarie Group shares, or as it told clients: "a great opportunity to invest in this cash and growth story". The broker has a "buy" recommendation on the shares and a $109.50 price target. Macquarie upgraded its guidance on Tuesday and based on reported net profit of $2.2 billion in 2017, the revised guidance implies $2.4 billion in 2018 which appears to be consistent with consensus. The stock rebounded to $101.05.
Myer Holdings Limited (MYR):
Retail billionaire Solomon Lew has kickstarted his campaign against Myer for 2018 by demanding another, current copy of the Myer shareholder register and will call an extraordinary general meeting to tip out the entire board and appoint its own directors to rescue the ailing department store. It means a renewal of hostilities between Mr. Lew and the nation’s largest department store which dominated much of last year as the two camps traded barbs, accusations and legal threats in a public brawl that became increasingly bitter as it dragged on.
Nick Scali Limited (NCK):
Furniture retailer Nick Scali has brushed aside the ills of the Australian retail sector to post a 15 per cent increase in half-year profit to $23.5 million, driven by higher sales across its network of stores and its ongoing store expansion program. However, it did experience some of the volatility in December and January that has crunched earnings for other retail chains, saying product order growth had turned negative in January. The furniture retailer has also added to its boardroom strength this morning, announcing the appointment of a new director, Stephen Goddard, who is currently on the board of JB Hi-Fi, GWA and Accent Group and who is the former finance director and CFO of department store David Jones.
Rio Tinto Limited (RIO):
Rio Tinto is gearing itself for rising wage pressure in Australia and its other host nations after reporting a 69 per cent rise in full-year profits and paying out record dividends to shareholders. The $US8.6 billion underlying profit reported on Wednesday was Rio's best result since 2014, and it allowed the Anglo-Australian miner to beat market expectations with a $US2.90 full-year dividend and lower than expected debt. With the mining sector set to report much improved profits this month, Rio chief executive Jean-Sebastien Jacques said workers would want their share of those profits. "We expect across all the geographies the cost of the salaries to go up, and therefore for us the mine to market productivity agenda is so important because we need to make sure that we have momentum to more than offset inflation," he said, adding that wage inflation was just one aspect of broader cost increases in the resurgent mining sector.
Specialty Fashion Limited (SFH):
High-profile businessman Geoff Levy is believed to be backing a partial buyout proposal of Specialty Fashion Group led by its former chief executive Gary Perlstein, in a deal that may provide a desperately needed lifeline to the struggling retailer. The Australian believes the company’s co-founder and former director, Ian Miller, is also involved. Mr. Levy now runs advisory firm Monash Private Capital, but he previously chaired Specialty Fashion Group, retiring from the board in 2015. He was also the former chairman at the Australian operations of Investec bank, and has been the director of numerous high-profile companies, including Ten Network, Rebel Sports, Hoyts, Freedom Furniture, STW and Mirvac. The understanding is that Mr Levy and Mr Perlstein, who was chief executive at SFG for 14 years, have put forward an offer to buy City Chic within the retailer’s stable — said to be by far the most lucrative of its brands, which also include Millers, Katies, Rivers, Crossroads and Autograph. Currently, SFG is swarming with advisers as it fights for survival amid a tough retail environment.
Slater & Gordon Limited (SGH):
Troubled law firm Slater & Gordon has unveiled a major overhaul in which it will offload several practice areas and refocus its business under a new chief executive, John Somerville, formerly a top executive at KPMG. Mr. Somerville, who is a former national managing partner of KPMG’s advisory practice, replaces Slater’s current chief executive, Hayden Stephens who is leaving the business but remaining on the board as a non-executive director. Slaters, which is now owned by a New York based hedge fund, will downsize its general law business by winding down or divesting the practice areas of succession, criminal and family law.
Wisetech Global Limited (WTC):
WiseTech Global acquired Belgian logistics solutions provider Intris, the latest deal in a bolt-on strategy that has WiseTech up to $14.53, an increase of nearly 5 per cent today. The Australian group is spending up to €11 million ($17 million) including earn-out potential. RBC Capital Markets saw the deal as being favourably received albeit not material on a stand-alone basis. Intris had 2016 annual revenue of $7.1 million and EBITDA of around $1.1 million. It will be consolidated from March and the acquisition brings customers Panalpina World Transport, Bollore Netherlands, Rhenus, Gosselin Support Services and AML. The business services freight forwarding, customs management and warehousing management activities. Richard White, the founder of WiseTech said Belgium is "one of Europe's largest and most important trade gateways".
(Source: AIMS)
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