A2 Milk Company Ltd (A2M):
New Zealand dairy company A2 Milk said on Wednesday it expected full-year revenues to rise more than 63 per cent after a surge in the first nine months of the financial year. Revenue for the 12 months to June 30 is expected to be between $NZ900 million and $NZ920 million ($827 million to $845 million) compared to $NZ549.5 million the previous year, the company said in a statement to the stock exchange. A2 Milk said revenue for the nine months ended March 31 was $NZ660 million, up about 70 percent from last year on the back of strong sales growth in its nutritional products and liquid milk. The sales growth also reflects the impact of seasonal sales from China selling events, weighted towards the first half of the financial year, the company said. a2 Milk investors have not reacted favourably to a trading update despite group revenue increasing by 70 per cent. The increase appears to have come in below expectation for investors. Shares are trading down 16.9 per cent. It appears Bellamy's investors have reacted too as the company's shares have fallen 10.2 per cent.
Automotive Holdings Group Ltd (AHG):
Tougher regulations around new and used car dealerships selling add-on insurance and financing have contributed to a heavy profit downgrade for Australia's largest car retailer, sending its share price diving. Automotive Holdings Group (AHG), which runs 110 dealerships in Australia and New Zealand, told investors on Tuesday that its second-half earnings were below expectations, in part due to new rules surrounding the sale of add-on insurance and "flex" commissions on car loans. "Our retail automotive business is adjusting to the changes to finance and insurance sales more slowly than we would have liked," AHG managing director John McConnell said, "and that's apparent across the sector." On Tuesday, the ASX-listed AHG cut its projected full-year net profit after tax from $85 million to $75 million. AHG's share price plunged more than 10 per cent following the news, but ended the day 8.82 per cent lower at $3.10. Despite the "challenging" car retailing conditions, the company said, truck sales remained strong. According to AHG, the profit downgrade was also due to delays in the sale of its refrigerated logistics business to Chinese tourism and transport giant HNA Group and the impact of the sale process on its trading.
BHP Billiton Limited (BHP):
BHP chief Andrew Mackenzie says the big miner is evaluating small and large growth options that could add $US31 billion of value, while revealing he has hit net debt targets and is on track to finish a US shale oil sale this year, opening the door for more returns to shareholders. But the mining boss has also revealed more challenges at its Queensland coking coal operations, where medium-term cost guidance has risen $US3 a tonne to $US57. In a speech to the Bank of America Merrill Lynch mining conference in Miami overnight, Mr Mackenzie said BHP (BHP) had reduced net debt, which was $US15.4bn at the end of December, into its target range of $US10bn to $US15bn and that “we see a positive future ahead for both prices and our portfolio.” “With conviction in the outlook, net debt within our target range, and with clearly defined capital plans, we expect a larger proportion of future free cash flow to find its way back to you, our shareholders,” he said. BHP outlined $US4bn of low-cost latent capacity options around the globe, such as debottlenecking, that could add $US16bn of net present value. And Mr Mackenzie said the company’s future growth options, at the Atlantis offshore oilfield in the US, the Scarborough gas field off WA, the Olympic Dam copper mine in South Australia, the Wards Well coal mine in Queensland, the Resolution copper project in Arizona and the Jansen potash project in Saskatchewan could add a further $US15bn of value.
Coca-Cola Amatil Ltd (CCL):
Scandal-torn wealth giant AMP's former chairman Catherine Brenner is retreating further from corporate life, announcing she will leave the board of Coca-Cola Amatil next year. CCA's chairman Ilana Atlas said that after being a director at the company for 10 years, Ms Brenner would not seek re-election at next year's annual general meeting. Ms Brenner quit as AMP chairman after revelations at the banking royal commission that the company stole from customers by charging them for services they did not receive, and then misled the corporate regulator about its misbehaviour. Ms Atlas said in remarks prepared for CCA's annual general meeting on Wednesday that the board had considered Ms Brenner's position at CCA in light of the AMP scandal and decided that it was best for shareholders that she stay on for another 12 months. "With five of our directors relatively new to the company, Catherine’s continued role on the board over the next 12 months will allow for an orderly transition as we look to appoint a new director at or before next year’s AGM," Ms Atlas said.
Computershare Limited (CPU):
Computershare plans to deepen its position in Europe through a €354.5 million ($474.59m) deal for Switzerland-based Equatex Group Holding AG, formerly the European share plans business of UBS Wealth Management. Computershare (CPU) said it would fund the purchase from Montagu Private Equity using a mix of existing cash and debt, with the deal seen closing within six months once regulators have given their approval. Computershare expects the deal to boost its Management EPS in the 2019 fiscal year, and estimates it can make savings of at least $US30m annually from integrating the business. To achieve those savings, the company said it expects to incur one-off costs of around $US47m. Equatex provides equity compensation administration services to 160 clients servicing over 1.1 million share plan participants, Computershare said.
Macquarie Atlas Roads Limited (MQA):
Macquarie Atlas’s James Hooke has passed the first test in a rather gruelling 48 hours as shareholders waved through resolutions to formally separate the international toll-road operator from the Macquarie Group mothership. But indications are that the next leg will be far tougher. Hooke flew out of Sydney yesterday afternoon to front the -Macquarie Infrastructure annual meeting in New York, where shareholders are seething over a collapse in the share price in -February after his successor as chief executive slashed the dividend to pay down debt and renovate its troubled terminals business. Rallied by investor Moab Partners, they are threatening class actions and, more immediately, are seeking to vote down all six directors, including Hooke, who retired as chief executive last year to become a non-executive director. The bigger danger is the call to terminate MIC’s lucrative management agreement with Macquarie, which has paid $500 million in fees, including performance -bonuses since 2015. The episode threatens to undermine the until-now stellar reputation Macquarie and Hooke had for turning around MIC since the global financial crisis and to spark a rather more messy break-up than is proceeding at what will now be known as Atlas Arteria.
Myer Holdings Ltd (MYR):
Myer’s 3.1 per cent drop in third quarter sales, was not as sharp as analysts had been tipping, but the department store operator has warned the warm start to winter has crunched demand for winter clothes, shoes and accessories which could crimp profitability in the fourth quarter. But in an unexpected move that will deprive the market of information on Myer’s quarterly performance, the retailer also announced this morning that from the start of the new financial year it will no longer provide quarterly sales updates. Myer (MYR) also announced this morning that it’s incoming chief executive, British retailer John King, had been granted visa approval and would start work at the troubled retailer on June 4. Unveiling its third quarter performance Myer said total sales were down 2.7 per cent to $635.3 million while like-for-like sales were 3.1 per cent weaker. Analysts had projected that like-for-like sales could have been down as much as 3.5 per cent as a pull back in sales, cautious consumers and tough trading conditions for fashion retailers ruined quarterly sales.
Specialty Fashion Group Ltd. (SFH):
Specialty Fashion Group’s largest shareholder, the owner of Cotton On, is building up its stake in the retailer after it revealed a new company structure this week. NAAH, the private company which owns Cotton On and holds 20.5 per cent of Specialty, has increased its holding in the fashion company and bought about $500,000 worth of stock on market. It comes as Noni B, which is backed by private equity group Alceon, buys Specialty brands Crossroads, Autograph, Millers, Rivers and Katies for $31 million. Noni B revealed today its institutional entitlement and placement has been finalised and raised $37.8 million. The deal leaves Specialty owning just City Chic, and the strategy has won the support of the market. he stock rose 57 per cent on Monday and is currently trading at 60.5c, up from 38c last week. NAAH is Specialty’s largest shareholder ahead of Lazard and the company’s former chief executive Gary Perlstein, who made a bid to buy Crossroad and Autograph.
Telstra Corporation Ltd (TLS):
Telstra shares have fallen below $3 to trade at their lowest level in almost seven years, with analysts warning the telco is going to struggle to maintain its promise of a dividend of 22c a share for shareholders. The telco’s stock has dropped more than 10 per cent on the back of its revised earnings guidance on Monday, with the market concerned about the rapid deterioration in Telstra’s financial outlook. Telstra shares hit a seven-year low of $2.87 yesterday, ending the session 5.6 per cent weaker. With an ultra-competitive mobile market and the ongoing destructive impact of the National Broadband Network on Telstra’s fixed-line earnings, analysts are concerned that its core business is sliding faster than expected. According to Citi analyst David Kaynes, Telstra’s senior management needs to take dramatic action to stop the rot.
(Source: AIMS)
New Zealand dairy company A2 Milk said on Wednesday it expected full-year revenues to rise more than 63 per cent after a surge in the first nine months of the financial year. Revenue for the 12 months to June 30 is expected to be between $NZ900 million and $NZ920 million ($827 million to $845 million) compared to $NZ549.5 million the previous year, the company said in a statement to the stock exchange. A2 Milk said revenue for the nine months ended March 31 was $NZ660 million, up about 70 percent from last year on the back of strong sales growth in its nutritional products and liquid milk. The sales growth also reflects the impact of seasonal sales from China selling events, weighted towards the first half of the financial year, the company said. a2 Milk investors have not reacted favourably to a trading update despite group revenue increasing by 70 per cent. The increase appears to have come in below expectation for investors. Shares are trading down 16.9 per cent. It appears Bellamy's investors have reacted too as the company's shares have fallen 10.2 per cent.
Automotive Holdings Group Ltd (AHG):
Tougher regulations around new and used car dealerships selling add-on insurance and financing have contributed to a heavy profit downgrade for Australia's largest car retailer, sending its share price diving. Automotive Holdings Group (AHG), which runs 110 dealerships in Australia and New Zealand, told investors on Tuesday that its second-half earnings were below expectations, in part due to new rules surrounding the sale of add-on insurance and "flex" commissions on car loans. "Our retail automotive business is adjusting to the changes to finance and insurance sales more slowly than we would have liked," AHG managing director John McConnell said, "and that's apparent across the sector." On Tuesday, the ASX-listed AHG cut its projected full-year net profit after tax from $85 million to $75 million. AHG's share price plunged more than 10 per cent following the news, but ended the day 8.82 per cent lower at $3.10. Despite the "challenging" car retailing conditions, the company said, truck sales remained strong. According to AHG, the profit downgrade was also due to delays in the sale of its refrigerated logistics business to Chinese tourism and transport giant HNA Group and the impact of the sale process on its trading.
BHP Billiton Limited (BHP):
BHP chief Andrew Mackenzie says the big miner is evaluating small and large growth options that could add $US31 billion of value, while revealing he has hit net debt targets and is on track to finish a US shale oil sale this year, opening the door for more returns to shareholders. But the mining boss has also revealed more challenges at its Queensland coking coal operations, where medium-term cost guidance has risen $US3 a tonne to $US57. In a speech to the Bank of America Merrill Lynch mining conference in Miami overnight, Mr Mackenzie said BHP (BHP) had reduced net debt, which was $US15.4bn at the end of December, into its target range of $US10bn to $US15bn and that “we see a positive future ahead for both prices and our portfolio.” “With conviction in the outlook, net debt within our target range, and with clearly defined capital plans, we expect a larger proportion of future free cash flow to find its way back to you, our shareholders,” he said. BHP outlined $US4bn of low-cost latent capacity options around the globe, such as debottlenecking, that could add $US16bn of net present value. And Mr Mackenzie said the company’s future growth options, at the Atlantis offshore oilfield in the US, the Scarborough gas field off WA, the Olympic Dam copper mine in South Australia, the Wards Well coal mine in Queensland, the Resolution copper project in Arizona and the Jansen potash project in Saskatchewan could add a further $US15bn of value.
Coca-Cola Amatil Ltd (CCL):
Scandal-torn wealth giant AMP's former chairman Catherine Brenner is retreating further from corporate life, announcing she will leave the board of Coca-Cola Amatil next year. CCA's chairman Ilana Atlas said that after being a director at the company for 10 years, Ms Brenner would not seek re-election at next year's annual general meeting. Ms Brenner quit as AMP chairman after revelations at the banking royal commission that the company stole from customers by charging them for services they did not receive, and then misled the corporate regulator about its misbehaviour. Ms Atlas said in remarks prepared for CCA's annual general meeting on Wednesday that the board had considered Ms Brenner's position at CCA in light of the AMP scandal and decided that it was best for shareholders that she stay on for another 12 months. "With five of our directors relatively new to the company, Catherine’s continued role on the board over the next 12 months will allow for an orderly transition as we look to appoint a new director at or before next year’s AGM," Ms Atlas said.
Computershare Limited (CPU):
Computershare plans to deepen its position in Europe through a €354.5 million ($474.59m) deal for Switzerland-based Equatex Group Holding AG, formerly the European share plans business of UBS Wealth Management. Computershare (CPU) said it would fund the purchase from Montagu Private Equity using a mix of existing cash and debt, with the deal seen closing within six months once regulators have given their approval. Computershare expects the deal to boost its Management EPS in the 2019 fiscal year, and estimates it can make savings of at least $US30m annually from integrating the business. To achieve those savings, the company said it expects to incur one-off costs of around $US47m. Equatex provides equity compensation administration services to 160 clients servicing over 1.1 million share plan participants, Computershare said.
Macquarie Atlas Roads Limited (MQA):
Macquarie Atlas’s James Hooke has passed the first test in a rather gruelling 48 hours as shareholders waved through resolutions to formally separate the international toll-road operator from the Macquarie Group mothership. But indications are that the next leg will be far tougher. Hooke flew out of Sydney yesterday afternoon to front the -Macquarie Infrastructure annual meeting in New York, where shareholders are seething over a collapse in the share price in -February after his successor as chief executive slashed the dividend to pay down debt and renovate its troubled terminals business. Rallied by investor Moab Partners, they are threatening class actions and, more immediately, are seeking to vote down all six directors, including Hooke, who retired as chief executive last year to become a non-executive director. The bigger danger is the call to terminate MIC’s lucrative management agreement with Macquarie, which has paid $500 million in fees, including performance -bonuses since 2015. The episode threatens to undermine the until-now stellar reputation Macquarie and Hooke had for turning around MIC since the global financial crisis and to spark a rather more messy break-up than is proceeding at what will now be known as Atlas Arteria.
Myer Holdings Ltd (MYR):
Myer’s 3.1 per cent drop in third quarter sales, was not as sharp as analysts had been tipping, but the department store operator has warned the warm start to winter has crunched demand for winter clothes, shoes and accessories which could crimp profitability in the fourth quarter. But in an unexpected move that will deprive the market of information on Myer’s quarterly performance, the retailer also announced this morning that from the start of the new financial year it will no longer provide quarterly sales updates. Myer (MYR) also announced this morning that it’s incoming chief executive, British retailer John King, had been granted visa approval and would start work at the troubled retailer on June 4. Unveiling its third quarter performance Myer said total sales were down 2.7 per cent to $635.3 million while like-for-like sales were 3.1 per cent weaker. Analysts had projected that like-for-like sales could have been down as much as 3.5 per cent as a pull back in sales, cautious consumers and tough trading conditions for fashion retailers ruined quarterly sales.
Specialty Fashion Group Ltd. (SFH):
Specialty Fashion Group’s largest shareholder, the owner of Cotton On, is building up its stake in the retailer after it revealed a new company structure this week. NAAH, the private company which owns Cotton On and holds 20.5 per cent of Specialty, has increased its holding in the fashion company and bought about $500,000 worth of stock on market. It comes as Noni B, which is backed by private equity group Alceon, buys Specialty brands Crossroads, Autograph, Millers, Rivers and Katies for $31 million. Noni B revealed today its institutional entitlement and placement has been finalised and raised $37.8 million. The deal leaves Specialty owning just City Chic, and the strategy has won the support of the market. he stock rose 57 per cent on Monday and is currently trading at 60.5c, up from 38c last week. NAAH is Specialty’s largest shareholder ahead of Lazard and the company’s former chief executive Gary Perlstein, who made a bid to buy Crossroad and Autograph.
Telstra Corporation Ltd (TLS):
Telstra shares have fallen below $3 to trade at their lowest level in almost seven years, with analysts warning the telco is going to struggle to maintain its promise of a dividend of 22c a share for shareholders. The telco’s stock has dropped more than 10 per cent on the back of its revised earnings guidance on Monday, with the market concerned about the rapid deterioration in Telstra’s financial outlook. Telstra shares hit a seven-year low of $2.87 yesterday, ending the session 5.6 per cent weaker. With an ultra-competitive mobile market and the ongoing destructive impact of the National Broadband Network on Telstra’s fixed-line earnings, analysts are concerned that its core business is sliding faster than expected. According to Citi analyst David Kaynes, Telstra’s senior management needs to take dramatic action to stop the rot.
(Source: AIMS)
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