Afterpay Touch Group Ltd(APT); Ziptel Ltd(ZIP); FlexiGroup Ltd(FXL):
The Australian Securities and Investments Commission has begun inquiries into the sharp share price drops of Afterpay, Zip and FlexiGroup on Wednesday morning, two days before a Senate inquiry into the buy-now-pay later sector is due to hand down its final report. Committee chair Jane Hume said a draft report was circulated to Senators involved in the committee at 7:30pm on Tuesday night. Shares fell in the financial services providers an hour after the market opened on Wednesday, with Afterpay falling by 11 per cent in 25 minutes between 11:15am and 11:40am.
Alumina Ltd(AWC):
Alumina Limited has reported record full-year results thanks to supply disruptions which pushed the commodity’s price up 33 per cent for the year. The company posted net profit of $US635.4 million, an 87 per cent increase on the prior year and declared a dividend of US14.1c per share. “This is a record result for our Company, culminating in the highest profit and largest annual dividend paid to shareholders in our history. The Company has declared a final dividend 52 per cent higher than last year and 2018 total dividends up 68pc over the previous year. Alumina Limited’s unrivalled focus on alumina has delivered outstanding returns to shareholders,” chief Mike Ferraro told the market. “ In 2019 the alumina market is expected to be broadly balanced as limited new capacity matches higher demand from smelters. The resumption of full production at the Alunorte refinery remains uncertain but we have assumed a restart in 2Q 2019 in our assessment of a balanced market.” Since January 1 he said the price of alumina had averaged at $US380 per tonne and set the company in good stead for significant margins in the year ahead.
Coca-Cola Amatil Ltd(CCL):
Coca-Cola Amatil's bottom line net profit plunged 37.3 per cent to $279 million in 2018 after the bottler slashed the value of food processor SPC by $146 million to zero and soft drink and bottled water sales continued to fall in its major market, Australia. Excluding impairment charges and losses from SPC, which is up for sale, CCA's underlying net profit from continuing operations fell 6.5 per cent to $388.5 million as weaker profits from Australian beverages and Indonesia and Papua New Guinea offset stronger earnings from New Zealand and Fiji and alcohol and coffee. The underlying result beat consensus net profit forecasts of about $378.9 million.
Graincorp Ltd(GNC):
How best to cost-effectively smooth out volatile grain earnings is back under consideration as part of GrainCorp's months-long portfolio review to extract better value and win back investor support, as the grain handler and receivals group said discussions with suitor Long Term Asset Partners were continuing and constructive. The surprise $3.2 billion approach from the Tony Shepherd-backed Long Term last December hinges on securitising unpredictable annual grain revenues, which is something chairman Graham Bradley said the company has considered in the past and was re-examining. As well as reconsidering weather derivatives and other ways to smooth revenues following LTAP's $3.2 billion offer last year, Mr Bradley said the company had "been approached by a number of parties who have expressed serious interest" in buying parts of the business, but said he couldn't give more detail.
Iluka Resources Ltd(ILU):
Iluka Resources returned to profit in 2018, aided by a jump in prices for the mineral sands it sells. The mining company on Thursday reported a net profit of $303.9 million for the 12 months through December. That compared to a loss of $171.6 million in 2017. Directors declared a final dividend of 19 cents a share, taking the full-year payout to 29 cents a share. “The results reflect favorable mineralsands market conditions with significant price increases across both of Iluka’s major product groups, zircon and high grade titanium dioxide feedstocks,” the company said. It had earlier reported a 22pc lift in mineral sands revenue, as price increases offset a small decline in sales because of earlier production curbs. ILU shares down 0.84pc to $9.50.
Myob Group Ltd(MYO):
Accounting software company MYOB's full-year results have confirmed why the business decided to recommend private equity firm KKR's reduced $3.40-per-share bid, with revenue growth for the full year slowing to 6.9 per cent. The company had reduced its revenue forecasts from growth of 8 per cent to 10 per cent, which it had outlined in August, to 7 per cent on Christmas eve when it unanimously recommended shareholders vote for the KKR scheme. MYOB's revenue hit $445.2 million for the full year to December 31, while its underlying earnings before interest, tax, depreciation and amortisation fell slightly to $189.6 million and its net profit jumped 5.14 per cent to $63.8 million.
Nine Entertainment Co Holdings Ltd(NEC):
Nine is forecasting a 10 per cent-plus bump in full-year earnings to continue into 2019-20 after the merger with Fairfax Media reduced its reliance on television advertising and allowed for a more diverse contribution from digital, publishing, streaming, radio, TV and real estate classifieds. Nine, owner of The Australian Financial Review, told investors to expect pro-forma earnings before interest, tax, depreciation and amortisation of at least $420 million for the full year. On a pro-forma basis, net profit was up 5 per cent to $126 million in the six months to December 31, EBITDA lifted 6 per cent to $252 million, while revenue slipped 3 per cent to $1.2 billion.
Noni B Ltd(NBL):
Shares in Noni B have lifted in early trade after the fashion retailer said first-half earnings from the brands it acquired from Specialty Fashion had been better-than-expected. While the company delivered a statutory profit result down 19.2 per cent on the prior half to $9.5 million, likefor-like sales had grown and had continued into the second half, Noni B said. The company reaffirmed its full-year earnings before interest, tax, depreciation and amortisation guidance of about $45m, up from a combined pro-forma earnings of $31.1m achieved by the Noni B Group and the acquired Specialty Fashion Group brands in the 2017 calendar year. That guidance was subject to trading in the lead up to the Mother’s Day period, the company said. Still, it expected the market to remain challenging. NBL last up 1.36pc to $2.99.
(Source: AIMS)
The Australian Securities and Investments Commission has begun inquiries into the sharp share price drops of Afterpay, Zip and FlexiGroup on Wednesday morning, two days before a Senate inquiry into the buy-now-pay later sector is due to hand down its final report. Committee chair Jane Hume said a draft report was circulated to Senators involved in the committee at 7:30pm on Tuesday night. Shares fell in the financial services providers an hour after the market opened on Wednesday, with Afterpay falling by 11 per cent in 25 minutes between 11:15am and 11:40am.
Alumina Ltd(AWC):
Alumina Limited has reported record full-year results thanks to supply disruptions which pushed the commodity’s price up 33 per cent for the year. The company posted net profit of $US635.4 million, an 87 per cent increase on the prior year and declared a dividend of US14.1c per share. “This is a record result for our Company, culminating in the highest profit and largest annual dividend paid to shareholders in our history. The Company has declared a final dividend 52 per cent higher than last year and 2018 total dividends up 68pc over the previous year. Alumina Limited’s unrivalled focus on alumina has delivered outstanding returns to shareholders,” chief Mike Ferraro told the market. “ In 2019 the alumina market is expected to be broadly balanced as limited new capacity matches higher demand from smelters. The resumption of full production at the Alunorte refinery remains uncertain but we have assumed a restart in 2Q 2019 in our assessment of a balanced market.” Since January 1 he said the price of alumina had averaged at $US380 per tonne and set the company in good stead for significant margins in the year ahead.
Coca-Cola Amatil Ltd(CCL):
Coca-Cola Amatil's bottom line net profit plunged 37.3 per cent to $279 million in 2018 after the bottler slashed the value of food processor SPC by $146 million to zero and soft drink and bottled water sales continued to fall in its major market, Australia. Excluding impairment charges and losses from SPC, which is up for sale, CCA's underlying net profit from continuing operations fell 6.5 per cent to $388.5 million as weaker profits from Australian beverages and Indonesia and Papua New Guinea offset stronger earnings from New Zealand and Fiji and alcohol and coffee. The underlying result beat consensus net profit forecasts of about $378.9 million.
Graincorp Ltd(GNC):
How best to cost-effectively smooth out volatile grain earnings is back under consideration as part of GrainCorp's months-long portfolio review to extract better value and win back investor support, as the grain handler and receivals group said discussions with suitor Long Term Asset Partners were continuing and constructive. The surprise $3.2 billion approach from the Tony Shepherd-backed Long Term last December hinges on securitising unpredictable annual grain revenues, which is something chairman Graham Bradley said the company has considered in the past and was re-examining. As well as reconsidering weather derivatives and other ways to smooth revenues following LTAP's $3.2 billion offer last year, Mr Bradley said the company had "been approached by a number of parties who have expressed serious interest" in buying parts of the business, but said he couldn't give more detail.
Iluka Resources Ltd(ILU):
Iluka Resources returned to profit in 2018, aided by a jump in prices for the mineral sands it sells. The mining company on Thursday reported a net profit of $303.9 million for the 12 months through December. That compared to a loss of $171.6 million in 2017. Directors declared a final dividend of 19 cents a share, taking the full-year payout to 29 cents a share. “The results reflect favorable mineralsands market conditions with significant price increases across both of Iluka’s major product groups, zircon and high grade titanium dioxide feedstocks,” the company said. It had earlier reported a 22pc lift in mineral sands revenue, as price increases offset a small decline in sales because of earlier production curbs. ILU shares down 0.84pc to $9.50.
Myob Group Ltd(MYO):
Accounting software company MYOB's full-year results have confirmed why the business decided to recommend private equity firm KKR's reduced $3.40-per-share bid, with revenue growth for the full year slowing to 6.9 per cent. The company had reduced its revenue forecasts from growth of 8 per cent to 10 per cent, which it had outlined in August, to 7 per cent on Christmas eve when it unanimously recommended shareholders vote for the KKR scheme. MYOB's revenue hit $445.2 million for the full year to December 31, while its underlying earnings before interest, tax, depreciation and amortisation fell slightly to $189.6 million and its net profit jumped 5.14 per cent to $63.8 million.
Nine Entertainment Co Holdings Ltd(NEC):
Nine is forecasting a 10 per cent-plus bump in full-year earnings to continue into 2019-20 after the merger with Fairfax Media reduced its reliance on television advertising and allowed for a more diverse contribution from digital, publishing, streaming, radio, TV and real estate classifieds. Nine, owner of The Australian Financial Review, told investors to expect pro-forma earnings before interest, tax, depreciation and amortisation of at least $420 million for the full year. On a pro-forma basis, net profit was up 5 per cent to $126 million in the six months to December 31, EBITDA lifted 6 per cent to $252 million, while revenue slipped 3 per cent to $1.2 billion.
Noni B Ltd(NBL):
Shares in Noni B have lifted in early trade after the fashion retailer said first-half earnings from the brands it acquired from Specialty Fashion had been better-than-expected. While the company delivered a statutory profit result down 19.2 per cent on the prior half to $9.5 million, likefor-like sales had grown and had continued into the second half, Noni B said. The company reaffirmed its full-year earnings before interest, tax, depreciation and amortisation guidance of about $45m, up from a combined pro-forma earnings of $31.1m achieved by the Noni B Group and the acquired Specialty Fashion Group brands in the 2017 calendar year. That guidance was subject to trading in the lead up to the Mother’s Day period, the company said. Still, it expected the market to remain challenging. NBL last up 1.36pc to $2.99.
(Source: AIMS)
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