AGL Energy Ltd (AGL):
AGL Energy, the highest profile political target in the utilities index, was 43c or 2 per cent lower at $21.34, just before lunch. The company is seen to be especially vulnerable to plans for a default energy price and new divestment powers the Government said it would seek in a bid to accelerate the fall in electricity prices. Infigen Energy, which builds and operates wind farms, was down 2c or 3.7 per cent to 58c, suggesting investor fears about renewable energy development without the NEG to guide it. Origin Energy, which sits in the energy index rather than utilities because of its giant Gladstone LNG export operations, is also exposed to the policy changes thanks to its position as a big three energy retailer and generator. Its shares fell 20.5c this morning to $8.42.
BHP Billiton Limited (BHP):
BHP’s full year profit has fallen 37 per cent because of write-downs on US shale and its Samarco iron ore unit in Brazil. But underlying profits, which strip out exceptional items, were up 33 per cent, in line with market expectations and leading to a record interim dividend for the big miner. Net profit for the year through June fell to $US3.705 billion, from $US5.89bn the year before, as the previously disclosed writedowns ate into profit. Underlying profit, which is more closely watched by the market, rose to $US8.933bn, meeting analyst expectations of $US8.94bn. BHP declared a record final dividend of US63 cents a share, bringing the full-year dividend to $US1.18, just beating analyst expectations of $US1.16. The dividend was just shy of BHP’s record full-year dividend of $US1.24 per share in 2015, just before the company abandoned its progressive dividend policy.
Bingo Industries Ltd (BIN):
Bingo Industries has confirmed its highly rumoured acquisition of Dial-a-Dump for $577.5 in cash and Bingo shares. Alongside the deal, it hopes to raise $425 million in a 1 for 2.48 pro-rata accelerated entitlement offer priced at $2.54 per share. Dial-a-Dump is a fully integrated waste management business in NSW with operations across the waste value chain - what will give Bingo a transfer station, waste facility and fleet of 55 vehicles. Seperately, the group will also acquire two freehold properties in Melbourne and Sydney.
Healthscope Ltd (HSO):
Health insurer Healthscope has posted a 50 per cent drop in full-year net profit, hit by an onerous lease provision for a private hospital in Victoria, as well as an impairment charge and hospital closure costs. Net profit fell to $75.8 million for the year ended June 30, with revenue up 3.7 per cent to $2.34 billion. The company declared a final dividend to 3.5 cent a share, steady from a year earlier. Ealier today the group announced the spin off of its hospitals into an unlisted property trust.
Helloworld Travel Ltd (HLO):
Travel company Helloworld has booked a bumper full-year profit and boosted its final dividend. Helloworld, which has a network of 2,223 independent franchised travel agents, booked an after tax profit attributable to members up 48.4 per cent to $31.9 million. The company declared a final dividend of 11 cents per share fully franked, up from 8c per share last year. Earnings before interest, tax, depreciation and amortisation jumped 18.2 per cent to $65.2m. Revenue was $326.9m, in line with the prior period. It followed a series of acquisitions, which the company said contributed about $200,000 in before tax profit before to the full-year result.
Scentre Group (SCG):
Shopping centre group Scentre is reaping the strong demand for retail space, netting it $1.46 billion for the half year. It reported funds from operations of $657 million, representing 12.38 cents per share up 3.1pc and a distribution of 11.06 cents per share. “High quality retail space that enjoys high traffic flow is in demand with occupancy across our portfolio at more than 99.5pc. The physical store is influencing sales across all channels including in-store, online and marketplaces as well as enabling ‘click and collect’ and last mile distribution. This reinforces the pivotal role that physical stores play in the retail ecosystem.”
Seven West Media Ltd (SWM):
Seven West Media has swung to a net profit of $135.8 million for the year ended June 30 as the media company focused on boosting television ratings and revenue and cutting costs. The group - which consists of Seven Network, Pacific Magazines and Yahoo7 - booked a net loss of $744 million last year, hit by weak ad revenue and a $436 million write-off in the carrying value of its television licences. Seven’s annual underlying earnings fell 9.9 per cent to $235.6 million, at the upper end of its $220-$240 million guidance range, and the company will pay a final dividend of two cents a share.
Super Retail Group (SUL):
A “solid trading update” from Super Retail Group was “likely ahead of expectations”, according to Citi’s head of sales, Karen Joritsma. Super Retail Group achieved a 1 per cent “beat” on the EBIT line and about 4pc on the NPAT line, although this beat was driven by lower tax/interest. But in the first 6-weeks of FY19, sales for Super Cheap rose 5pc, Rebel 3pc, Macpac 7pc on a like for like basis. “Macpac was a highlight of the result, contributing $7.3m in EBIT vs guidance of $5m,” Ms Joritsma says. “The stock has had a solid run lately, but market should like this small result beat combined with a positive trading update.”
Temple & Webster Group Ltd (TPW):
Online homewares retailer Temple & Webster has narrowed its full year loss and reaffirmed an expected swing to profit in fiscal year 2019. Temple & Webster, which was launched in 2011 and has grown to have a subscriber base of more than 1 million active customers, delivered a net loss after tax of $21,000 for the year ended June 30. That figure compared to a net loss of $7.8 million last year. Still, the company swung to positive earnings for the second half and remained upbeat on the year ahead, saying that positive sales momentum had continued through July, when trading lifted 34 per cent compared to the prior year. For the second half, Temple & Webster booked an earnings before interest, tax, depreciation and amortisation of $300,000, compared to a $1.8m earnings loss in the same period a year prior.
Westpac Banking Corp (WBC):
Westpac’s chief economist Bill Evans now sees RBA holding its cash rate at a record low hold through 2020. He previously saw the record rates on hold until 2019. “The tightening of financial conditions which is normally associated with increases in the RBA cash rate has been replaced, in this cycle, with macro prudential policies and rising wholesale interest rates. Accordingly Australia’s participation in the global tightening cycle has taken a different form.”
(Source: AIMS)
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