Bendigo and Adelaide Bank Ltd (BEN):
Adelaide Bank is blaming "challenging" market conditions for raising variable rates across its range of investor and owner-occupied products by up to 40 basis points. The move closely follows Westpac Group's decision to raise variable rates by 14 basis points and will fuel heated market speculation that other majors will follow with out-of-cycle rate rises to cover increased capital costs. Adelaide Bank is a division of the nation's fifth largest bank Bendigo and Adelaide Bank. Rising rates on the eve of the spring real estate season, traditionally the busiest period for sales, is also expected to subdue already sluggish clearance rates amid growing home buyer and investor fears of more increases, particularly in Melbourne and Sydney. Adelaide Bank is increasing rates for eight products covering its range of principal and interest and interest-only owner-occupied and investor products.
Freedom Insurance Group Ltd (FIG):
Shares in Freedom Insurance have tumbled a further 8 per cent on Friday morning as the direct life insurance company attempted to hose down “speculation” about the troubled passage of its flagship $65m takeover of Bank of Queensland’s St Andrew’s life insurance business. Freedom Insurance shares have lost 40 per cent of their value of the week as the company attempts to fight emerging fires on a number of fronts. An investigation by the corporate watchdog is putting pressure on the Australian Prudential Regulation Authority to block a takeover of Bank of Queensland’s life insurance division, St Andrew’s, by royal commission case study Freedom Insurance. The royal commission has called up Freedom for its public hearings into the scandal-ridden life insurance sector. Meanwhile, a damning report from the Australia Securities & Investments Commission put the group’s business model in serious doubt after it told life insurance companies to shut down outbound sales centres or face legal action. FIG last down 7.69pc at 24c
Harvey Norman Holdings Limited (HVN):
Furniture, bedding and consumer electronics retailer Harvey Norman has suffered a 16 per cent dive in its fullyear net profit to $380.05 million despite stronger sales for its stores as the housing boom and a growing population bolster its performance. It’s collapsing profitability was instead driven by slowing values for its swollen property portfolio and more than $90m in losses and impairments linked to its failed dairy venture. Harvey Norman has also acted this morning to repair its balance sheet and pay down debt, launching a renounceable pro rata entitlement offer of new fully paid shares to raise $163.85m with an offer price of $2.50 per share – a steep discount to a closing price yesterday of $3.77. Harvey Norman posted its full-year results this morning, with net profit before tax down 17.1 per cent to $530.17m and underlying net profit – excluding the losses and impairments for its Coomboona dairy joint venture – down by 0.96 per cent to $532.54m. Shares dropped 8pc at the open, last down 1.59pc at $3.71.
Nextdc Ltd (NXT):
NEXTDC has reported record revenue and earnings, but slipped when it comes to profit. The data centre operator recorded revenue of $161.5 million, well above its guidance range of $152m to $158m but profit down to $6.6m from $23m previously. It said its Brisbane and Melbourne sites were in operation, with two more in Perth and Sydney in development. “We continue to experience strong demand for NEXTDC’s premium data centre services, with the Company experiencing not only strong growth in contracted utilisation, but also adding a record number of more than 2,300 interconnections during FY18,” chief Craig Scroggie said. “Furthermore, with NEXTDC currently in advanced negotiations in relation to further large customer opportunities, we expect to carry this strong momentum into FY19.” NXT last up 0.68pc at $7.40.
Orora Ltd (ORA):
Packaging giant Orora will acquire Texas-based packaging distribution Bronco Packaging for up to $US24 million ($33m), as it looks to grow its North America business. Bronco, a family-owned business which primarily services corporate accounts in fresh food manufacturing, generates revenues in excess of $US50m, Orora said in a statement to the ASX this morning. “The acquisition continues the strategic focus to leverage the existing national footprint, product breadth and customised packaging solutions offering to further drive sales growth from both corporate accounts and new customer wins,” chief executive and managing director Nigel Garrard said. Bronco employs about 30 people and provides an ‘on-demand’ packaging delivery services to customers located in Texas. Its existing management will continue to lead the business for a period or at least three years to ensure a smooth transition.
Reece Ltd (REH):
Plumbing group Reece Limited has delivered on its promise of a record full-year result, lifting profit 6.1 per cent to $225 million. The ASX-listed firm says profit for the 12 months to June 30 rose from $212 million a year ago as revenue rose 10.7 per cent to a record $2.69 billion following the addition of 28 new stores, 16 through the acquisition of Viadux in Australia and Heatcraft New Zealand. Reece is also expanding into the United States with a $1.9 billion ($US1.44bn) deal to buy US plumbing distributor MORSCO, but that deal completed in July after the close of the last financial year.
Regis Healthcare Ltd (REG):
Aged care company Regis Healthcare has delivered a full-year profit plunge and lowered its final dividend, following the impact of government funding cuts to residential aged care and occupancy pressures during the period. Unveiling a net profit after tax down 12 per cent on the prior year to $53.9 million, the company said it is nearing a “significant milestone”, with four new facilities opening over the year and three more to be opened by the end of December. Regis declared a fully-franked final dividend of 8.65 cents per share, down from 10c per share last year. The company said it will now focus on paying down debt, with its greenfield development program requiring no further investment to deliver the remaining facilities.
Transurban Group (TCL):
Toll road giant Transurban has won a deal to buy a 51 per cent stake in Sydney’s $16 billion WestConnex motorway project after beating a challenge from a consortium led by infrastructure heavyweight IFM Investors. Transurban and its consortium partners - AustralianSuper, the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority sovereign wealth fund - will pay $9.26 billion for the stake, NSW Treasurer Dominic Perrottet announced today. The blockbuster deal, which covers a 42-year concession, will fund the M4-M5 final final stage of WestConnex and future infrastructure across the state. “The transaction not only funds the completion of the congestion-busting WestConnex, but will allow the Government to inject billions more towards infrastructure projects like new schools and hospitals,” Mr Perrottet said. “This project means people will be able to travel from the west and south west of Sydney with ease, spend less time in traffic, and get home to their families faster.” Transurban will raise around $4.6 billion of equity to fund its WestConnex acquisition.
(Source: AIMS)
Adelaide Bank is blaming "challenging" market conditions for raising variable rates across its range of investor and owner-occupied products by up to 40 basis points. The move closely follows Westpac Group's decision to raise variable rates by 14 basis points and will fuel heated market speculation that other majors will follow with out-of-cycle rate rises to cover increased capital costs. Adelaide Bank is a division of the nation's fifth largest bank Bendigo and Adelaide Bank. Rising rates on the eve of the spring real estate season, traditionally the busiest period for sales, is also expected to subdue already sluggish clearance rates amid growing home buyer and investor fears of more increases, particularly in Melbourne and Sydney. Adelaide Bank is increasing rates for eight products covering its range of principal and interest and interest-only owner-occupied and investor products.
Freedom Insurance Group Ltd (FIG):
Shares in Freedom Insurance have tumbled a further 8 per cent on Friday morning as the direct life insurance company attempted to hose down “speculation” about the troubled passage of its flagship $65m takeover of Bank of Queensland’s St Andrew’s life insurance business. Freedom Insurance shares have lost 40 per cent of their value of the week as the company attempts to fight emerging fires on a number of fronts. An investigation by the corporate watchdog is putting pressure on the Australian Prudential Regulation Authority to block a takeover of Bank of Queensland’s life insurance division, St Andrew’s, by royal commission case study Freedom Insurance. The royal commission has called up Freedom for its public hearings into the scandal-ridden life insurance sector. Meanwhile, a damning report from the Australia Securities & Investments Commission put the group’s business model in serious doubt after it told life insurance companies to shut down outbound sales centres or face legal action. FIG last down 7.69pc at 24c
Harvey Norman Holdings Limited (HVN):
Furniture, bedding and consumer electronics retailer Harvey Norman has suffered a 16 per cent dive in its fullyear net profit to $380.05 million despite stronger sales for its stores as the housing boom and a growing population bolster its performance. It’s collapsing profitability was instead driven by slowing values for its swollen property portfolio and more than $90m in losses and impairments linked to its failed dairy venture. Harvey Norman has also acted this morning to repair its balance sheet and pay down debt, launching a renounceable pro rata entitlement offer of new fully paid shares to raise $163.85m with an offer price of $2.50 per share – a steep discount to a closing price yesterday of $3.77. Harvey Norman posted its full-year results this morning, with net profit before tax down 17.1 per cent to $530.17m and underlying net profit – excluding the losses and impairments for its Coomboona dairy joint venture – down by 0.96 per cent to $532.54m. Shares dropped 8pc at the open, last down 1.59pc at $3.71.
Nextdc Ltd (NXT):
NEXTDC has reported record revenue and earnings, but slipped when it comes to profit. The data centre operator recorded revenue of $161.5 million, well above its guidance range of $152m to $158m but profit down to $6.6m from $23m previously. It said its Brisbane and Melbourne sites were in operation, with two more in Perth and Sydney in development. “We continue to experience strong demand for NEXTDC’s premium data centre services, with the Company experiencing not only strong growth in contracted utilisation, but also adding a record number of more than 2,300 interconnections during FY18,” chief Craig Scroggie said. “Furthermore, with NEXTDC currently in advanced negotiations in relation to further large customer opportunities, we expect to carry this strong momentum into FY19.” NXT last up 0.68pc at $7.40.
Orora Ltd (ORA):
Packaging giant Orora will acquire Texas-based packaging distribution Bronco Packaging for up to $US24 million ($33m), as it looks to grow its North America business. Bronco, a family-owned business which primarily services corporate accounts in fresh food manufacturing, generates revenues in excess of $US50m, Orora said in a statement to the ASX this morning. “The acquisition continues the strategic focus to leverage the existing national footprint, product breadth and customised packaging solutions offering to further drive sales growth from both corporate accounts and new customer wins,” chief executive and managing director Nigel Garrard said. Bronco employs about 30 people and provides an ‘on-demand’ packaging delivery services to customers located in Texas. Its existing management will continue to lead the business for a period or at least three years to ensure a smooth transition.
Reece Ltd (REH):
Plumbing group Reece Limited has delivered on its promise of a record full-year result, lifting profit 6.1 per cent to $225 million. The ASX-listed firm says profit for the 12 months to June 30 rose from $212 million a year ago as revenue rose 10.7 per cent to a record $2.69 billion following the addition of 28 new stores, 16 through the acquisition of Viadux in Australia and Heatcraft New Zealand. Reece is also expanding into the United States with a $1.9 billion ($US1.44bn) deal to buy US plumbing distributor MORSCO, but that deal completed in July after the close of the last financial year.
Regis Healthcare Ltd (REG):
Aged care company Regis Healthcare has delivered a full-year profit plunge and lowered its final dividend, following the impact of government funding cuts to residential aged care and occupancy pressures during the period. Unveiling a net profit after tax down 12 per cent on the prior year to $53.9 million, the company said it is nearing a “significant milestone”, with four new facilities opening over the year and three more to be opened by the end of December. Regis declared a fully-franked final dividend of 8.65 cents per share, down from 10c per share last year. The company said it will now focus on paying down debt, with its greenfield development program requiring no further investment to deliver the remaining facilities.
Transurban Group (TCL):
Toll road giant Transurban has won a deal to buy a 51 per cent stake in Sydney’s $16 billion WestConnex motorway project after beating a challenge from a consortium led by infrastructure heavyweight IFM Investors. Transurban and its consortium partners - AustralianSuper, the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority sovereign wealth fund - will pay $9.26 billion for the stake, NSW Treasurer Dominic Perrottet announced today. The blockbuster deal, which covers a 42-year concession, will fund the M4-M5 final final stage of WestConnex and future infrastructure across the state. “The transaction not only funds the completion of the congestion-busting WestConnex, but will allow the Government to inject billions more towards infrastructure projects like new schools and hospitals,” Mr Perrottet said. “This project means people will be able to travel from the west and south west of Sydney with ease, spend less time in traffic, and get home to their families faster.” Transurban will raise around $4.6 billion of equity to fund its WestConnex acquisition.
(Source: AIMS)
Latest comments