Ansell Limited (ANN):
Healthcare and industrial glove specialist Ansell has boosted its final dividend by 5 per cent after posting a 228 per cent jump in annual net profit following a one-off gain from the sale of its condom business last year. Net profit jumped to $US484.3 million ($662.4m) in the year to June 30 from $US147.4m in the previous year. The $US600m sale of its sexual wellness unit, covering its array of condoms and lubricants, to Chinese investors Humanwell Healthcare and Citic Capital last September led to an after-tax gain of $US345m. Ansell (ANN) lifted its dividend to US25c a share, up from US23.75c in 2017, and to be paid on September 13. Excluding the gain on the sale of the sexual wellness division and benefits from share buybacks, Ansell’s earnings lifted 19 per cent to $US0.965 a share. That was toward the lower end of guidance of $US0.96 to $US1.06 provided by the company earlier in the year.
Beach Energy Ltd (BPT):
Kerry Stokes-backed oil and gas player Beach Energy (BPT) has posted a 86 per cent increase in annual underlying net profit after tax, just missing consensus estimates, and expects to nearly double its capital spending to between $460 million and $540m in the 2019 financial year. Beach chief executive Matt Kay said strong cash flow generation would enable the company to rapidly pay down debt, while balance-sheet liquidity, a strong reserves position and expanded asset portfolio meant it was the right time to push a big investment program. The Adelaide-based company said underlying net profit jumped to $302m in the year to June 30 from $161m the previous year, just lower than an analyst consensus estimate of $307m. Underlying earnings before interest, tax, depreciation and amortisation rose 121 per cent to $766m, slightly higher than a $756m estimate from RBC, compared with $347m in the prior 12 month period. Beach expects its 2019 production volumes to be in a range of 26m barrels of oil equivalent to 28m boe, up from 26.7m boe last year, and in line with market expectations. The company is targeting boosting production to more than 30m boe by the 2021 financial year. About 80 per cent of its proposed 2019 capital spend of up to $540m is classed as discretionary and to be spent in line with strict investment hurdles and return requirements.
Eclipx Group Ltd (ECX):
Eclipx group has rejected an unsolicited takeover proposal from SG Fleet, saying its price was ‘inadequate’. It said the offer was recieved on Sunday, but that its proposed consideration of $2 cash and 0.15 SG Fleet shares per Eclipx share simply wasn’t enough. “The SG Fleet proposal is highly opportunistic and seeks to take advantage of the current weakness in Eclipx Group’s share price. It does not reflect the long term prospects and value inherent in Eclipx Group nor synergies available in any industry combination,” chairman Kerry Roxburgh said. Eclipx said the offer valued its shares at $2.52 a share, a premium of 17.8pc to its last closing price of $2.14. “The Eclipx Board has considered the proposal and concluded that the terms, in particular the price, were inadequate and not in the best interests of shareholders. The Eclipx Board has therefore rejected the proposal,” Eclipx said in a filing to market.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group says annual profit plunged 58 per cent as weaker iron ore prices more than offset a further reduction in costs. The iron ore miner (FMG) reported a net profit of $US879 million for the 12 months through June, versus about $US2.1 billion in the same period a year earlier. Fortescue said it would pay a final dividend of 12 cents a share, less than half last year’s final payout of 25c a share. The company said it reduced cash costs a further 4 per cent, but that the average price it received fell to $US44 a tonne, from $US53 a tonne during the 12 months earlier.
Greencross Limited (GXL):
Listed pet-care company Greencross has spruiked the future success of its integrated vet and retail business model as it delivered a full-year net profit plunge. Greencross, which offers veterinary and pet grooming services as well as pet food and accessories across Australia and New Zealand, booked a full-year statutory net profit after tax down 51 per cent on the prior year to $20.7 million. That figure included $24.2m in exceptional items - $21.8m of non-cash impairments and provisions, as well as $2.4m in acquisition and restructuring costs incurred in the first half. Greencross declared a fully franked final dividend of 5.5 cents per share, compared to a final dividend of 9.5c per share last year. Sales revenue lifted 7 per cent to $878.7m compared to the prior year. Greencross said it expects revenue growth to continue for the year ahead, driven by its expansion strategy and the delivery of the benefits of its integrated business model, which combines retail stores with in-store pet clinics.
Investa Office Fund (IOF):
The long-running battle for control of the Investa Office Fund has taken yet another twist. Major shareholder and joint owner of the management company, the Investa Commercial Property Fund, has come out against the deal. The group has also sold a 9.99 per cent stake in IOF to Canadian giant Oxford Property Group. That deal was struck at $5.25 per security, well above US private equity group Blackstone’s $5.15. The move effectively creates a 20 per cent voting block against the deal which faces a 75 per cent hurdle and had split proxy advisory houses. IOF shares could fall unless Blackstone comes back with a higher offer.
Mcgrath Ltd (MEA):
High profile real estate agency McGrath has posted an after tax loss of $63.1 million for the year to June 30 after the departure of agents to rivals and writedowns hit the bottom line. The company (MEA), whose largest sharehold is celebrity agent John McGrath with around a 22 per cent holding, met downgraded underlying earnings guidance of $5 million but saw revenue fall away, dropping 23 per cent to $99.2m. Impairment charges, largely against its company-owned agencies, of $59.4m and one-off restructuring costs of $4m drove the bottom line loss. It reported earnings before interest tax and amortisation of $1m. Chief executive Geoff Lucas said the last quarter of 2018 saw signs of stabilisation in the business as the board and management team settled in.
NIB Holdings Limited (NHF):
Health insure Nib has recorded an 11.5 per cent jump in group revenue to $2.2 billion as less claims by customers helped boost its margin. The annual results, released today, also showed that net profit after tax grew 11.1 per cent to $133.5m. The underlying operating profit was a 20.2 per cent increase on last year’s figure at $184.81m. Nib’s managing director, Mark Fitzgibbon, said the full year result reflected ongoing solid growth across the group and strong execution of nib’s business strategy. The company’s (NHF) Australian residents health insurance (arhi) business recorded an 12.1 per cent increase in premium revenue to $1.9bn on the back of organic growth and the acquisition of GU Health in October 2017. Nib’s portfolio of adjacent businesses also grew their revenue by 8.1 per cent to almost $358.9m.
oOh!Media Ltd (OML):
Outdoor and digital advertising company oOh!media reported another strong half-year result today, with net profit after tax up 3 per cent year on year to $9.2m, with digital sales climbing to 64 per cent of its total revenue. The airport, retail and outdoor digital poster company (OML) had continued double digit revenue growth of 11 per cent to $192.0m, year-on-year to June 30. It said the margin on its gross profit of $87.6m was 46 per cent, compared with 44 per cent previously. The company said growth would continue in the second half of 2018, with underlying EBITDA forecast between $94m to $99m. This excluded oOh!Media’s purchase of rival Adshel, which oOh!media is buying from HT&E for $570m via a combination of new debt and equity capital raising. The company said it expected to complete the deal later this year, subject to regulatory approval. The board declared a fully franked dividend of 3.5 cents per share down from 4.5 cents. While revenue in its retail division was down 5 per cent, due to reduce spending by major advertisers, the road division was up 16 per cent thanks to strong interest in both its 8000 digital panels across Australia and New Zealand and 12,000 traditional panels. The airport division revenue was up 18 per cent, thanks to the company extending its offering beyond Qantas Domestic terminals into international and domestic in-flight entertainment, with an audience of more than 28 million travellers each year.
Primary Health Care Limited (PRY):
Primary Healthcare has launched a $250 million equity raising through UBS and Morgan Stanley to fund its medical centre and pathology investment programs, a potential acquisition and other costs. According to a term sheet sent to investors, the raise is by way of a non-renounceable pro-rata entitlement offer with securities sold at $2.50 per share. This represents a 20.5 per cent discount to the dividend adjusted last closing price of $3.145. The actual last closing price was $3.20 and the final dividend for the 2018 financial year is 5.5 cents. Primary said the proceeds would be used to fund medical centre and pathology investment programs, the upfront consideration for a potential acquisition, for general corporate purposes and the payment of transaction costs. It comes as Primary posted an $8.9m net profit compared to a $516.9m loss in the previous corresponding year.
Woolworths Group Ltd (WOW):
Woolworths has admitted for the first time that the phasing out of single-use plastic bags from its supermarkets, and their replacement with reusable bags, has hurt its sales momentum, adding to the hit suffered by rival Coles. The admission came as Woolworths Group’s annual net profit rose 12.5 per cent to $1.72 billion, reflecting earnings growth in the Australian food division and benefits from a new petrol alliance. Total revenue from continuing operations was $57.2 billion, up 3.5 per cent. Earnings before interest and tax in its key Australian food division rose by nearly 10 per cent. The retailer also boosted dividends, declaring a final dividend of 50 cents per share, plus a special dividend of 10c. That took the full-year payout to $1.03 per share, an increase of 22 per cent. Releasing its results, Woolworths (WOW) conceded the plastic bags ban had dented sales. Woolworths said in the first seven weeks of the first quarter of fiscal 2019 — which coincided with the removal of plastic bags from the nation’s supermarkets from July 1 — its same-store sales had slowed down to growth of just 1.3 per cent. This is a slowdown compared to the same store sales growth of 2.6 per cent for the three months before the plastic bags were removed from its supermarkets.
(Source: AIMS)
Healthcare and industrial glove specialist Ansell has boosted its final dividend by 5 per cent after posting a 228 per cent jump in annual net profit following a one-off gain from the sale of its condom business last year. Net profit jumped to $US484.3 million ($662.4m) in the year to June 30 from $US147.4m in the previous year. The $US600m sale of its sexual wellness unit, covering its array of condoms and lubricants, to Chinese investors Humanwell Healthcare and Citic Capital last September led to an after-tax gain of $US345m. Ansell (ANN) lifted its dividend to US25c a share, up from US23.75c in 2017, and to be paid on September 13. Excluding the gain on the sale of the sexual wellness division and benefits from share buybacks, Ansell’s earnings lifted 19 per cent to $US0.965 a share. That was toward the lower end of guidance of $US0.96 to $US1.06 provided by the company earlier in the year.
Beach Energy Ltd (BPT):
Kerry Stokes-backed oil and gas player Beach Energy (BPT) has posted a 86 per cent increase in annual underlying net profit after tax, just missing consensus estimates, and expects to nearly double its capital spending to between $460 million and $540m in the 2019 financial year. Beach chief executive Matt Kay said strong cash flow generation would enable the company to rapidly pay down debt, while balance-sheet liquidity, a strong reserves position and expanded asset portfolio meant it was the right time to push a big investment program. The Adelaide-based company said underlying net profit jumped to $302m in the year to June 30 from $161m the previous year, just lower than an analyst consensus estimate of $307m. Underlying earnings before interest, tax, depreciation and amortisation rose 121 per cent to $766m, slightly higher than a $756m estimate from RBC, compared with $347m in the prior 12 month period. Beach expects its 2019 production volumes to be in a range of 26m barrels of oil equivalent to 28m boe, up from 26.7m boe last year, and in line with market expectations. The company is targeting boosting production to more than 30m boe by the 2021 financial year. About 80 per cent of its proposed 2019 capital spend of up to $540m is classed as discretionary and to be spent in line with strict investment hurdles and return requirements.
Eclipx Group Ltd (ECX):
Eclipx group has rejected an unsolicited takeover proposal from SG Fleet, saying its price was ‘inadequate’. It said the offer was recieved on Sunday, but that its proposed consideration of $2 cash and 0.15 SG Fleet shares per Eclipx share simply wasn’t enough. “The SG Fleet proposal is highly opportunistic and seeks to take advantage of the current weakness in Eclipx Group’s share price. It does not reflect the long term prospects and value inherent in Eclipx Group nor synergies available in any industry combination,” chairman Kerry Roxburgh said. Eclipx said the offer valued its shares at $2.52 a share, a premium of 17.8pc to its last closing price of $2.14. “The Eclipx Board has considered the proposal and concluded that the terms, in particular the price, were inadequate and not in the best interests of shareholders. The Eclipx Board has therefore rejected the proposal,” Eclipx said in a filing to market.
Fortescue Metals Group Limited (FMG):
Fortescue Metals Group says annual profit plunged 58 per cent as weaker iron ore prices more than offset a further reduction in costs. The iron ore miner (FMG) reported a net profit of $US879 million for the 12 months through June, versus about $US2.1 billion in the same period a year earlier. Fortescue said it would pay a final dividend of 12 cents a share, less than half last year’s final payout of 25c a share. The company said it reduced cash costs a further 4 per cent, but that the average price it received fell to $US44 a tonne, from $US53 a tonne during the 12 months earlier.
Greencross Limited (GXL):
Listed pet-care company Greencross has spruiked the future success of its integrated vet and retail business model as it delivered a full-year net profit plunge. Greencross, which offers veterinary and pet grooming services as well as pet food and accessories across Australia and New Zealand, booked a full-year statutory net profit after tax down 51 per cent on the prior year to $20.7 million. That figure included $24.2m in exceptional items - $21.8m of non-cash impairments and provisions, as well as $2.4m in acquisition and restructuring costs incurred in the first half. Greencross declared a fully franked final dividend of 5.5 cents per share, compared to a final dividend of 9.5c per share last year. Sales revenue lifted 7 per cent to $878.7m compared to the prior year. Greencross said it expects revenue growth to continue for the year ahead, driven by its expansion strategy and the delivery of the benefits of its integrated business model, which combines retail stores with in-store pet clinics.
Investa Office Fund (IOF):
The long-running battle for control of the Investa Office Fund has taken yet another twist. Major shareholder and joint owner of the management company, the Investa Commercial Property Fund, has come out against the deal. The group has also sold a 9.99 per cent stake in IOF to Canadian giant Oxford Property Group. That deal was struck at $5.25 per security, well above US private equity group Blackstone’s $5.15. The move effectively creates a 20 per cent voting block against the deal which faces a 75 per cent hurdle and had split proxy advisory houses. IOF shares could fall unless Blackstone comes back with a higher offer.
Mcgrath Ltd (MEA):
High profile real estate agency McGrath has posted an after tax loss of $63.1 million for the year to June 30 after the departure of agents to rivals and writedowns hit the bottom line. The company (MEA), whose largest sharehold is celebrity agent John McGrath with around a 22 per cent holding, met downgraded underlying earnings guidance of $5 million but saw revenue fall away, dropping 23 per cent to $99.2m. Impairment charges, largely against its company-owned agencies, of $59.4m and one-off restructuring costs of $4m drove the bottom line loss. It reported earnings before interest tax and amortisation of $1m. Chief executive Geoff Lucas said the last quarter of 2018 saw signs of stabilisation in the business as the board and management team settled in.
NIB Holdings Limited (NHF):
Health insure Nib has recorded an 11.5 per cent jump in group revenue to $2.2 billion as less claims by customers helped boost its margin. The annual results, released today, also showed that net profit after tax grew 11.1 per cent to $133.5m. The underlying operating profit was a 20.2 per cent increase on last year’s figure at $184.81m. Nib’s managing director, Mark Fitzgibbon, said the full year result reflected ongoing solid growth across the group and strong execution of nib’s business strategy. The company’s (NHF) Australian residents health insurance (arhi) business recorded an 12.1 per cent increase in premium revenue to $1.9bn on the back of organic growth and the acquisition of GU Health in October 2017. Nib’s portfolio of adjacent businesses also grew their revenue by 8.1 per cent to almost $358.9m.
oOh!Media Ltd (OML):
Outdoor and digital advertising company oOh!media reported another strong half-year result today, with net profit after tax up 3 per cent year on year to $9.2m, with digital sales climbing to 64 per cent of its total revenue. The airport, retail and outdoor digital poster company (OML) had continued double digit revenue growth of 11 per cent to $192.0m, year-on-year to June 30. It said the margin on its gross profit of $87.6m was 46 per cent, compared with 44 per cent previously. The company said growth would continue in the second half of 2018, with underlying EBITDA forecast between $94m to $99m. This excluded oOh!Media’s purchase of rival Adshel, which oOh!media is buying from HT&E for $570m via a combination of new debt and equity capital raising. The company said it expected to complete the deal later this year, subject to regulatory approval. The board declared a fully franked dividend of 3.5 cents per share down from 4.5 cents. While revenue in its retail division was down 5 per cent, due to reduce spending by major advertisers, the road division was up 16 per cent thanks to strong interest in both its 8000 digital panels across Australia and New Zealand and 12,000 traditional panels. The airport division revenue was up 18 per cent, thanks to the company extending its offering beyond Qantas Domestic terminals into international and domestic in-flight entertainment, with an audience of more than 28 million travellers each year.
Primary Health Care Limited (PRY):
Primary Healthcare has launched a $250 million equity raising through UBS and Morgan Stanley to fund its medical centre and pathology investment programs, a potential acquisition and other costs. According to a term sheet sent to investors, the raise is by way of a non-renounceable pro-rata entitlement offer with securities sold at $2.50 per share. This represents a 20.5 per cent discount to the dividend adjusted last closing price of $3.145. The actual last closing price was $3.20 and the final dividend for the 2018 financial year is 5.5 cents. Primary said the proceeds would be used to fund medical centre and pathology investment programs, the upfront consideration for a potential acquisition, for general corporate purposes and the payment of transaction costs. It comes as Primary posted an $8.9m net profit compared to a $516.9m loss in the previous corresponding year.
Woolworths Group Ltd (WOW):
Woolworths has admitted for the first time that the phasing out of single-use plastic bags from its supermarkets, and their replacement with reusable bags, has hurt its sales momentum, adding to the hit suffered by rival Coles. The admission came as Woolworths Group’s annual net profit rose 12.5 per cent to $1.72 billion, reflecting earnings growth in the Australian food division and benefits from a new petrol alliance. Total revenue from continuing operations was $57.2 billion, up 3.5 per cent. Earnings before interest and tax in its key Australian food division rose by nearly 10 per cent. The retailer also boosted dividends, declaring a final dividend of 50 cents per share, plus a special dividend of 10c. That took the full-year payout to $1.03 per share, an increase of 22 per cent. Releasing its results, Woolworths (WOW) conceded the plastic bags ban had dented sales. Woolworths said in the first seven weeks of the first quarter of fiscal 2019 — which coincided with the removal of plastic bags from the nation’s supermarkets from July 1 — its same-store sales had slowed down to growth of just 1.3 per cent. This is a slowdown compared to the same store sales growth of 2.6 per cent for the three months before the plastic bags were removed from its supermarkets.
(Source: AIMS)
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