Aurizon Holdings Ltd (AZJ):
Aurizon hit out at Queensland competition regulators and warned it would close its intermodal business if a planned sale falls through as interim net profit rose 52 per cent to $281.5 million. Net profit jumped 52 per cent to $281.5 million from $185.8 million in the yearearlier period as revenue fell 3 per cent to $1.57 billion from the previous $1.62 billion. A draft decision by the Queensland Competition Authority (QCA) to allow Aurizon to earn as much as $3.9 billion from its networks business between July 2017 and June 2021 - nearly $1 billion less than what Aurizon believes it should earn.
Amcor Limited (AMC):
The chief executive of packaging giant Amcor says he will be able to pass on in full the sharp rises of 15 per cent-plus in major raw materials like resin and aluminium even though customers always quibble about having the higher prices foisted on them. Amcor chief executive Ron Delia, who announced an increase in first half dividend of 8 per cent even though the company is grappling with rising raw material costs, weaker trading in emerging markets in Asia and Russia, and a drop in profits from its North American beverage business, also said the company was eyeing acquisitions. But they would need to stack up financially for any deal to proceed.
Bendigo and Adelaide Bank (BEN):
Speaking from the bank’s (BEN) offices, Mr Hirst today reported that the nation’s fifth largest mortgage lender lifted cash profit 10.7 per cent to $225.3 million for the six months through December, from $203.5m in the prior corresponding period. Housing lending grew 0.7 per cent, driven by owner occupied flows. Investor lending flows, meanwhile, slumped 59 per cent in the period, while interest only loans fell 41 per cent. Net interest margin, the difference between how much the bank pays customers in interest on their savings, and the rate its customers pay on loans, rose 18 basis points to 2.36 per cent. The bank’s CET1 ratio rose to 8.61 per cent, meeting the Australian Prudential Regulation Authority’s 8.5 per cent benchmark. “Our current capital position is a highlight, with Common Equity Tier 1 Capital having grown to 8.61 per cent, generated by strong profitability, a stable balance sheet and reduced risk,” Mr Hirst said. The bank raised its interim dividend 1 cent to 35 cents, fully franked.
Fletcher Building Limited (FBU):
Embattled building products and construction company Fletcher Building has extended a trading halt on its shares for a further 48 hours as it finalizes the extent of the mounting losses in its troubled building and interiors division. It also revealed on Monday morning that it had already started talks with its bankers in relation to breaches of debt covenants. Former UGL boss Ross Taylor took over as chief executive of Fletcher in November last year, while the company is chaired by former Commonwealth Bank chief executive Sir Ralph Norris. Fletcher said that a trading halt which had been due to lift on February 12 on both the New Zealand and Australian stock exchanges would now stay in place until February 14.
GETSWIFT LIMITED (GSW):
Embattled logistics software start-up GetSwift is in the process of appointing an US-based investment bank to handle potential proposals, as the company looks for a buyer. GetSwift’s shares remain suspended and the company, on Friday, shed further light on the allegations that it had made premature revenue forecasts related to a deal with CBA in 2017, and announced deals with The Fruit Box Group and Fantastic Furniture that did not progress past trial stages. GetSwift said on Friday that it was still working with PwC in relation to its compliance obligations and will make further statements on February 19. “PwC will be assisting GetSwift in the execution of new corporate governance processes, providing ongoing briefing and support to the board, and providing training where relevant to employees, in relation to the Company’s obligations to satisfy listing rule requirements,” the company said.
JB Hi-Fi Limited (JBH):
JB Hi-Fi's first-half net profit surged 37.4 per cent to $151.7 million. Net profit result for the six months ending December 31 beat consensus forecasts of about $150 million and improved on the $110.4 million result in the year-earlier period. Topline sales rose 41 per cent to $3.69 billion, exceeding forecasts centring around $3.64 billion, buoyed by the acquisition of The Good Guys on November 28 2016 and strong samestore sales growth at JB Hi-Fi stores, which accelerated in November and December "The consumer electronics category was strong over the key Christmas season and JB Hi-Fi was a key beneficiary of this and likely gained market share due to a strong promotional program," said Deutsche Bank analyst Michael Simotas. JB Hi-Fi increased its interim dividend from 72¢ a share to 86¢ a share, payable March 9. While first-half net profit exceeded market forecasts around $150 million, full-year guidance is slightly below current consensus of $241.9 million.
BWP Trust (BWP):
In a further management shake-up of Bunnings’ loss-making British arm, chief general merchandise manager Craig Castelino has stepped down and will return to Australia. Last week it was announced the Bunnings UK boss Peter Davis was retiring after initially taking a three-month leave of absence before Christmas. Bunnings UK finance director Rodney Boys has also departed. Bunnings said Mr Boys had taken up a new role with Wesfarmers, while Mr Castelino was taking a new position at Bunnings Australia, with both moves reflecting their secondment contracts. Mr Boys was part of the original team of Bunnings senior management that took control of British chain Homebase when it was bought by Wesfarmers in 2016, along with Mr Davis, under the leadership of then Bunnings boss John Gillam — who has also left the business.
Aventus Retail Property Fund (AVN):
The Brett Blundy-backed Aventus Retail Property Fund lifted first-half earnings from its portfolio of 20 large format retail centres by 29 per cent to $45 million, but has trimmed back its full-year guidance. Funds from operations (FFO) per unit rose 3.4 per cent to 9.1¢ over the period, but Aventus has cut back its full year outlook to growth of 2 to 3 per cent, having forecast FFO per unit growth of 2 to 4 per cent when it released FY17 full-year results in August. The fund continued to diversify its tenant base away from traditional "bulky goods" tenants, with 37 per cent of its tenants now non-household goods tenants like cafes, gyms, supermarkets and childcare centres. "We have strategically improved the quality of the portfolio by acquiring dominant centres at Castle Hill and Marsden Park and through the divestment of smaller centres at Shepparton and Tweed, with total value of total capital transactions of approximately $500 million for the half," said Aventus CEO Darren Holland.Mr Holland highlighted that 92 per cent of the portfolio by value was located in the "high growth eastern states of Australia and mainly metropolitan locations".
(Source: AIMS)
Aurizon hit out at Queensland competition regulators and warned it would close its intermodal business if a planned sale falls through as interim net profit rose 52 per cent to $281.5 million. Net profit jumped 52 per cent to $281.5 million from $185.8 million in the yearearlier period as revenue fell 3 per cent to $1.57 billion from the previous $1.62 billion. A draft decision by the Queensland Competition Authority (QCA) to allow Aurizon to earn as much as $3.9 billion from its networks business between July 2017 and June 2021 - nearly $1 billion less than what Aurizon believes it should earn.
Amcor Limited (AMC):
The chief executive of packaging giant Amcor says he will be able to pass on in full the sharp rises of 15 per cent-plus in major raw materials like resin and aluminium even though customers always quibble about having the higher prices foisted on them. Amcor chief executive Ron Delia, who announced an increase in first half dividend of 8 per cent even though the company is grappling with rising raw material costs, weaker trading in emerging markets in Asia and Russia, and a drop in profits from its North American beverage business, also said the company was eyeing acquisitions. But they would need to stack up financially for any deal to proceed.
Bendigo and Adelaide Bank (BEN):
Speaking from the bank’s (BEN) offices, Mr Hirst today reported that the nation’s fifth largest mortgage lender lifted cash profit 10.7 per cent to $225.3 million for the six months through December, from $203.5m in the prior corresponding period. Housing lending grew 0.7 per cent, driven by owner occupied flows. Investor lending flows, meanwhile, slumped 59 per cent in the period, while interest only loans fell 41 per cent. Net interest margin, the difference between how much the bank pays customers in interest on their savings, and the rate its customers pay on loans, rose 18 basis points to 2.36 per cent. The bank’s CET1 ratio rose to 8.61 per cent, meeting the Australian Prudential Regulation Authority’s 8.5 per cent benchmark. “Our current capital position is a highlight, with Common Equity Tier 1 Capital having grown to 8.61 per cent, generated by strong profitability, a stable balance sheet and reduced risk,” Mr Hirst said. The bank raised its interim dividend 1 cent to 35 cents, fully franked.
Fletcher Building Limited (FBU):
Embattled building products and construction company Fletcher Building has extended a trading halt on its shares for a further 48 hours as it finalizes the extent of the mounting losses in its troubled building and interiors division. It also revealed on Monday morning that it had already started talks with its bankers in relation to breaches of debt covenants. Former UGL boss Ross Taylor took over as chief executive of Fletcher in November last year, while the company is chaired by former Commonwealth Bank chief executive Sir Ralph Norris. Fletcher said that a trading halt which had been due to lift on February 12 on both the New Zealand and Australian stock exchanges would now stay in place until February 14.
GETSWIFT LIMITED (GSW):
Embattled logistics software start-up GetSwift is in the process of appointing an US-based investment bank to handle potential proposals, as the company looks for a buyer. GetSwift’s shares remain suspended and the company, on Friday, shed further light on the allegations that it had made premature revenue forecasts related to a deal with CBA in 2017, and announced deals with The Fruit Box Group and Fantastic Furniture that did not progress past trial stages. GetSwift said on Friday that it was still working with PwC in relation to its compliance obligations and will make further statements on February 19. “PwC will be assisting GetSwift in the execution of new corporate governance processes, providing ongoing briefing and support to the board, and providing training where relevant to employees, in relation to the Company’s obligations to satisfy listing rule requirements,” the company said.
JB Hi-Fi Limited (JBH):
JB Hi-Fi's first-half net profit surged 37.4 per cent to $151.7 million. Net profit result for the six months ending December 31 beat consensus forecasts of about $150 million and improved on the $110.4 million result in the year-earlier period. Topline sales rose 41 per cent to $3.69 billion, exceeding forecasts centring around $3.64 billion, buoyed by the acquisition of The Good Guys on November 28 2016 and strong samestore sales growth at JB Hi-Fi stores, which accelerated in November and December "The consumer electronics category was strong over the key Christmas season and JB Hi-Fi was a key beneficiary of this and likely gained market share due to a strong promotional program," said Deutsche Bank analyst Michael Simotas. JB Hi-Fi increased its interim dividend from 72¢ a share to 86¢ a share, payable March 9. While first-half net profit exceeded market forecasts around $150 million, full-year guidance is slightly below current consensus of $241.9 million.
BWP Trust (BWP):
In a further management shake-up of Bunnings’ loss-making British arm, chief general merchandise manager Craig Castelino has stepped down and will return to Australia. Last week it was announced the Bunnings UK boss Peter Davis was retiring after initially taking a three-month leave of absence before Christmas. Bunnings UK finance director Rodney Boys has also departed. Bunnings said Mr Boys had taken up a new role with Wesfarmers, while Mr Castelino was taking a new position at Bunnings Australia, with both moves reflecting their secondment contracts. Mr Boys was part of the original team of Bunnings senior management that took control of British chain Homebase when it was bought by Wesfarmers in 2016, along with Mr Davis, under the leadership of then Bunnings boss John Gillam — who has also left the business.
Aventus Retail Property Fund (AVN):
The Brett Blundy-backed Aventus Retail Property Fund lifted first-half earnings from its portfolio of 20 large format retail centres by 29 per cent to $45 million, but has trimmed back its full-year guidance. Funds from operations (FFO) per unit rose 3.4 per cent to 9.1¢ over the period, but Aventus has cut back its full year outlook to growth of 2 to 3 per cent, having forecast FFO per unit growth of 2 to 4 per cent when it released FY17 full-year results in August. The fund continued to diversify its tenant base away from traditional "bulky goods" tenants, with 37 per cent of its tenants now non-household goods tenants like cafes, gyms, supermarkets and childcare centres. "We have strategically improved the quality of the portfolio by acquiring dominant centres at Castle Hill and Marsden Park and through the divestment of smaller centres at Shepparton and Tweed, with total value of total capital transactions of approximately $500 million for the half," said Aventus CEO Darren Holland.Mr Holland highlighted that 92 per cent of the portfolio by value was located in the "high growth eastern states of Australia and mainly metropolitan locations".
(Source: AIMS)
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