Afterpay Touch Group Ltd (APT):
Market darling Afterpay has swung to a loss in the half year to December due to a number of non-core impairments, while posting an 85 per cent boost to its total income. The company said the total value of sales processed through its platform had hit $2.3 billion, up 147 per cent on the first half last year. “We are pleased to have managed the growth concurrently with a reduced gross loss rate which was down from 1.6pc in H1 FY18 to 1.1pc (pro forma) in H1 FY19 as a percentage of underlying sales. This is an important benefit for our business but more importantly for our customers,” it said in a statement to the market.
Autosports Group Ltd (ASG):
Luxury car dealer Autosports Group has more than halved its half year profit as it invested in new acquisitions and facilities amid a slowing market for new sports cars. Reporting its results for the half-year to December, Autosports posted profit of $5.35 million, and declared a 2c per share dividend. The biggest weight was a 12 per cent decline in the east coast luxury market from July to December, what had seen its new and used vehicle revenue slip by 9.3pc while its service and parts revenue grew by 5pc over the period. The company estimated the effect of the Sydney hailstorms, quarantines and new global emmission testing procedures to have cost $3 million in earnings. Looking ahead, it said the difficult luxury vehicle market conditions were expected to continue into the second half but that its acquisition of new Canterbury BMW site would support full year revenue. ASG last up 2.22pc to $1.15.
Blackmores Ltd (BKL):
Health supplement company Blackmores says its chief executive has resigned after 18 months on the job. Richard Henfrey, who has been with the company in a variety of executive roles since April 2009, will remain in the position while the board searches for a new CEO. The company did not state a reason for his resignation. Blackmores shares hit an 18-month low last week after the vitamin maker told investors not to expect an increase in sales to China. Blackmores shares are currently down 4 per cent, or $3.04, to $92.16, close to the low of $88.30 reached last week.
Caltex Australia Ltd (CTX):
Caltex Australia is splashing cash as it attempts to gain more control of its operations by returning franchised stores to company ownership and buying back $260 million of its shares. Its shares are up 2.8 per cent in early trading to $28.40. The fuel retailer spent about $20 million in 2018 bringing 182 franchised petrol stations back into the fold under its previously announced plan to buy back more than 400 service stations by 2020 as it exits the franchise industry. Caltex said the transition of franchise stores hit convenience retail earnings before interest and tax, which fell 8 per cent to $307 million, affected by and the rollout of new store formats, while fuel & infrastructure's EBIT of $570 million was in line with guidance. Overall annual profit fell 10 per cent to $560 million, from $619 million in 2017, but was still above its guidance range of $530 million to $550 million.
FlexiGroup Ltd (FXL):
Investment banker John Wylie has backed a plan for struggling consumer finance group Flexigroup to reclaim ground in the buy now, pay later sector it started by throwing down the gauntlet to Afterpay. Shares in the volatile stock are down 8.3 per cent to $18.79 in lunch time trading. Wylie's investment vehicle Tanarra Capial will pump $21.5 million into Flexigroup to support the turnaround plan of chief executive Rebecca James, who was appointed in October following a three-year period in which Flexigroup's stock more than halved. James' plan centres on Flexigroup consolidating its existing BNPL business – which is large and profitable, but almost invisible – under a new brand, to be called Humm. The new brand will offer a sort of super-sized version of Afterpay product – and one that could potentially eat into the market leader's margins. "We are a leader in this space – and we are not dead in the water," James told Chanticleer.
GWA Group Ltd (GWA):
Building fixture and fitting supplier GWA has been given the green light from New Zealand’s overseas investment regulator to move on its $112 million acquisition of tap maker Methven. The offer, first revealed in December, equates to NZ$1.60 per share and seeks to stregthen GWA’s position in bathroom and kitchen fixtures across Australia and New Zealand. Today, GWA said it had recieved New Zealand Overseas Investment Office consent and would take the scheme of arrangement to shareholders next month. If all goes to plan, the acquisition would be complete by April 10. GWA shares last up 0.17pc to $3.00.
Incitec Pivot Ltd (IPL):
Incitec Pivot took a much bigger-than-expected earnings hit from Queensland floods at $100 million to $120m, but it’s one-off in nature, notes Citi. “Incitec Pivot has come through with an updated guidance to the negative hit from North Queensland floods,” the broker says. “The market was expecting this, but the magnitude is far greater than expected (as) most people probably thought 3-4 weeks of outage which is about 6 per cent EBIT impact, but three months is 18 per cent. “This as a significant setback, which will likely see the stock pullback today, but in our view, the market should not be capitalising this event given the arguably ‘one-off’ nature of the floods.” IPL last down 4.5pc at $3.234.
oOh!Media Ltd (OML):
Outdoor advertising business Ooh!Media chief executive Brendon Cook expects the upcoming elections and an earlier Easter to hit billboard bookings as major brands keep out of the "noise" of the political cycle. OohMedia's share price fell 8.58 per cent to $3.73 on Monday and dropped a further 6.8 per cent on Tuesday to $3.47 after the outdoor advertising business posted a 18 per cent increase in underlying net profit after tax to $51.1 million. When including the cost of acquiring Here There & Everywhere's street furniture arm Adshel, net profit was down 4 per cent to $31.6 million. The company gave guidance that underlying earnings (before interest, tax, depreciation and amortisation) for calendar 2019 will be from $152 million to $162 million. Mr Cook said the out-of-home advertising industry was up on a year-on-year basis but expected elections - including a federal election likely in May and a NSW state election in March - could be a drag on the early-2019 results.
Pental Ltd (PTL):
Pental, a leading supplier of consumer goods to the supermarkets including brands such as White King bleach, Aim toothpaste, Velvet and Country Life soaps and Jiffy firelighters, has admitted that securing brand growth in the supermarket sector is becoming a lot more difficult. Consumers now seem hooked on promotion and are being lured by private label products, what it said was squeezing its margins. Pental has this morning posted a 26 per cent gain in half-year sales to $48.025 million and a 20.13 per cent lift in net profit thanks to its new Duracell battery distribution deal. Also sweetening the result is the news today that Pental has inked a deal with juggernaut retail chain Chemist Warehouse to supply the Country Life brand and soon to be selling Country Life Tradie Soap and Velvet Bloom Luxe Beauty Bar exclusively across its 400 stores. But in its key retail channel, the supermarkets, Pental continues to find the trading conditions tarnished by intense price competition, the pressure to hold promotions to drive sales and a growing threat from private label products that are undermining traditional brands.
Pioneer Credit Ltd (PNC):
Shares in debt consolidation company Pioneer Credit are down 24 per cent to $2.33 this morning after it reported weaker than expected results late last night. Post-tax profit was $5.46 million in the six months ending December 2018, 33 per cent lower than the same period in 2017. "The company does not provide guidance for any half. While we did not meet our own expectations and we are disappointed with our performance, that sentiment should be balanced against the liquidations performance, strong EBIDTA and exceptionally disciplined investment outcomes," the company told the market last night, confirming guidance for the full year of a 20 per cent increase in earnings to about $65 million and a 14 per cent increase in post-tax profit to about $20 million.
Spark Infrastructure Group (SKI):
Spark Infrastructure increased earnings by almost 5 per cent after higher distributions from its network investments across the south east of Australia and improved efficiency. Cash distributions from its investments rose 7.3 per cent to $305 million as Spark said its investment businesses increased their regulated and contracted asset bases. Spark owns minority interests in network businesses with $17 billion of electricity transmission and distribution assets, including 49 per cent of the SA Power Networks and Victoria Power Networks that are controlled by Cheung Kong Infrastructure, and 15 per cent of the NSW transmission business TransGrid alongside a group of local and offshore infrastructure funds. Spark will pay a 16c annual distribution - including an 8c final distribution - but repeated warnings that it would cut the 2019 distribution to 15c and expected to become a taxpayer this year after losing a court case brought by the tax office over tax payable by VPN between 2008 and 2011. SKI shares last up 0.43pc to $2.36.
TPG Telecom Ltd (TPM):
TPG Telecom will make $228 million of first-half writedowns related to its decision to stop building its mobile network. The broadband provider says it will write down the value of its spectrum licences by about $92 million and its mobile network capital expenditure by $76 million, while writing off $60 million in interest expenses. TPG, which will announce its first-half results on March 19, last month cited the federal government’s ban on using equipment from China’s Huawei when it scrapped its planned $2 billion mobile network. Analysts have suggested the move was designed to ease its merger with rival Vodafone Australia past the competition watchdog.
Yancoal Australia Ltd (YAL):
Shares in Yancoal are up 12.5 per cent to $3.60, the highest price since 10 January, 2019. The company is 62 per cent owned by Yanzhou Coal Mining Company, which is majority owned by the Chinese state-owned Yankuang Group, and this company will get a $235 million windfall from the 28.55 cent dividend, which includes a 12.59 cent special dividend. Yancoal chairman Baocai Zhang said Yancoal had delivered "exceptional full-year financial results" that had allowed the business to also cut debt by a further $US500 million. "2018 has been a year of extraordinary growth and success, with a record dividend declared, debt reduced by more than half a billion dollars, and Yancoal Australia listed on the Main Board of the Stock Exchange of Hong Kong," he said.
(Source: AIMS)
Market darling Afterpay has swung to a loss in the half year to December due to a number of non-core impairments, while posting an 85 per cent boost to its total income. The company said the total value of sales processed through its platform had hit $2.3 billion, up 147 per cent on the first half last year. “We are pleased to have managed the growth concurrently with a reduced gross loss rate which was down from 1.6pc in H1 FY18 to 1.1pc (pro forma) in H1 FY19 as a percentage of underlying sales. This is an important benefit for our business but more importantly for our customers,” it said in a statement to the market.
Autosports Group Ltd (ASG):
Luxury car dealer Autosports Group has more than halved its half year profit as it invested in new acquisitions and facilities amid a slowing market for new sports cars. Reporting its results for the half-year to December, Autosports posted profit of $5.35 million, and declared a 2c per share dividend. The biggest weight was a 12 per cent decline in the east coast luxury market from July to December, what had seen its new and used vehicle revenue slip by 9.3pc while its service and parts revenue grew by 5pc over the period. The company estimated the effect of the Sydney hailstorms, quarantines and new global emmission testing procedures to have cost $3 million in earnings. Looking ahead, it said the difficult luxury vehicle market conditions were expected to continue into the second half but that its acquisition of new Canterbury BMW site would support full year revenue. ASG last up 2.22pc to $1.15.
Blackmores Ltd (BKL):
Health supplement company Blackmores says its chief executive has resigned after 18 months on the job. Richard Henfrey, who has been with the company in a variety of executive roles since April 2009, will remain in the position while the board searches for a new CEO. The company did not state a reason for his resignation. Blackmores shares hit an 18-month low last week after the vitamin maker told investors not to expect an increase in sales to China. Blackmores shares are currently down 4 per cent, or $3.04, to $92.16, close to the low of $88.30 reached last week.
Caltex Australia Ltd (CTX):
Caltex Australia is splashing cash as it attempts to gain more control of its operations by returning franchised stores to company ownership and buying back $260 million of its shares. Its shares are up 2.8 per cent in early trading to $28.40. The fuel retailer spent about $20 million in 2018 bringing 182 franchised petrol stations back into the fold under its previously announced plan to buy back more than 400 service stations by 2020 as it exits the franchise industry. Caltex said the transition of franchise stores hit convenience retail earnings before interest and tax, which fell 8 per cent to $307 million, affected by and the rollout of new store formats, while fuel & infrastructure's EBIT of $570 million was in line with guidance. Overall annual profit fell 10 per cent to $560 million, from $619 million in 2017, but was still above its guidance range of $530 million to $550 million.
FlexiGroup Ltd (FXL):
Investment banker John Wylie has backed a plan for struggling consumer finance group Flexigroup to reclaim ground in the buy now, pay later sector it started by throwing down the gauntlet to Afterpay. Shares in the volatile stock are down 8.3 per cent to $18.79 in lunch time trading. Wylie's investment vehicle Tanarra Capial will pump $21.5 million into Flexigroup to support the turnaround plan of chief executive Rebecca James, who was appointed in October following a three-year period in which Flexigroup's stock more than halved. James' plan centres on Flexigroup consolidating its existing BNPL business – which is large and profitable, but almost invisible – under a new brand, to be called Humm. The new brand will offer a sort of super-sized version of Afterpay product – and one that could potentially eat into the market leader's margins. "We are a leader in this space – and we are not dead in the water," James told Chanticleer.
GWA Group Ltd (GWA):
Building fixture and fitting supplier GWA has been given the green light from New Zealand’s overseas investment regulator to move on its $112 million acquisition of tap maker Methven. The offer, first revealed in December, equates to NZ$1.60 per share and seeks to stregthen GWA’s position in bathroom and kitchen fixtures across Australia and New Zealand. Today, GWA said it had recieved New Zealand Overseas Investment Office consent and would take the scheme of arrangement to shareholders next month. If all goes to plan, the acquisition would be complete by April 10. GWA shares last up 0.17pc to $3.00.
Incitec Pivot Ltd (IPL):
Incitec Pivot took a much bigger-than-expected earnings hit from Queensland floods at $100 million to $120m, but it’s one-off in nature, notes Citi. “Incitec Pivot has come through with an updated guidance to the negative hit from North Queensland floods,” the broker says. “The market was expecting this, but the magnitude is far greater than expected (as) most people probably thought 3-4 weeks of outage which is about 6 per cent EBIT impact, but three months is 18 per cent. “This as a significant setback, which will likely see the stock pullback today, but in our view, the market should not be capitalising this event given the arguably ‘one-off’ nature of the floods.” IPL last down 4.5pc at $3.234.
oOh!Media Ltd (OML):
Outdoor advertising business Ooh!Media chief executive Brendon Cook expects the upcoming elections and an earlier Easter to hit billboard bookings as major brands keep out of the "noise" of the political cycle. OohMedia's share price fell 8.58 per cent to $3.73 on Monday and dropped a further 6.8 per cent on Tuesday to $3.47 after the outdoor advertising business posted a 18 per cent increase in underlying net profit after tax to $51.1 million. When including the cost of acquiring Here There & Everywhere's street furniture arm Adshel, net profit was down 4 per cent to $31.6 million. The company gave guidance that underlying earnings (before interest, tax, depreciation and amortisation) for calendar 2019 will be from $152 million to $162 million. Mr Cook said the out-of-home advertising industry was up on a year-on-year basis but expected elections - including a federal election likely in May and a NSW state election in March - could be a drag on the early-2019 results.
Pental Ltd (PTL):
Pental, a leading supplier of consumer goods to the supermarkets including brands such as White King bleach, Aim toothpaste, Velvet and Country Life soaps and Jiffy firelighters, has admitted that securing brand growth in the supermarket sector is becoming a lot more difficult. Consumers now seem hooked on promotion and are being lured by private label products, what it said was squeezing its margins. Pental has this morning posted a 26 per cent gain in half-year sales to $48.025 million and a 20.13 per cent lift in net profit thanks to its new Duracell battery distribution deal. Also sweetening the result is the news today that Pental has inked a deal with juggernaut retail chain Chemist Warehouse to supply the Country Life brand and soon to be selling Country Life Tradie Soap and Velvet Bloom Luxe Beauty Bar exclusively across its 400 stores. But in its key retail channel, the supermarkets, Pental continues to find the trading conditions tarnished by intense price competition, the pressure to hold promotions to drive sales and a growing threat from private label products that are undermining traditional brands.
Pioneer Credit Ltd (PNC):
Shares in debt consolidation company Pioneer Credit are down 24 per cent to $2.33 this morning after it reported weaker than expected results late last night. Post-tax profit was $5.46 million in the six months ending December 2018, 33 per cent lower than the same period in 2017. "The company does not provide guidance for any half. While we did not meet our own expectations and we are disappointed with our performance, that sentiment should be balanced against the liquidations performance, strong EBIDTA and exceptionally disciplined investment outcomes," the company told the market last night, confirming guidance for the full year of a 20 per cent increase in earnings to about $65 million and a 14 per cent increase in post-tax profit to about $20 million.
Spark Infrastructure Group (SKI):
Spark Infrastructure increased earnings by almost 5 per cent after higher distributions from its network investments across the south east of Australia and improved efficiency. Cash distributions from its investments rose 7.3 per cent to $305 million as Spark said its investment businesses increased their regulated and contracted asset bases. Spark owns minority interests in network businesses with $17 billion of electricity transmission and distribution assets, including 49 per cent of the SA Power Networks and Victoria Power Networks that are controlled by Cheung Kong Infrastructure, and 15 per cent of the NSW transmission business TransGrid alongside a group of local and offshore infrastructure funds. Spark will pay a 16c annual distribution - including an 8c final distribution - but repeated warnings that it would cut the 2019 distribution to 15c and expected to become a taxpayer this year after losing a court case brought by the tax office over tax payable by VPN between 2008 and 2011. SKI shares last up 0.43pc to $2.36.
TPG Telecom Ltd (TPM):
TPG Telecom will make $228 million of first-half writedowns related to its decision to stop building its mobile network. The broadband provider says it will write down the value of its spectrum licences by about $92 million and its mobile network capital expenditure by $76 million, while writing off $60 million in interest expenses. TPG, which will announce its first-half results on March 19, last month cited the federal government’s ban on using equipment from China’s Huawei when it scrapped its planned $2 billion mobile network. Analysts have suggested the move was designed to ease its merger with rival Vodafone Australia past the competition watchdog.
Yancoal Australia Ltd (YAL):
Shares in Yancoal are up 12.5 per cent to $3.60, the highest price since 10 January, 2019. The company is 62 per cent owned by Yanzhou Coal Mining Company, which is majority owned by the Chinese state-owned Yankuang Group, and this company will get a $235 million windfall from the 28.55 cent dividend, which includes a 12.59 cent special dividend. Yancoal chairman Baocai Zhang said Yancoal had delivered "exceptional full-year financial results" that had allowed the business to also cut debt by a further $US500 million. "2018 has been a year of extraordinary growth and success, with a record dividend declared, debt reduced by more than half a billion dollars, and Yancoal Australia listed on the Main Board of the Stock Exchange of Hong Kong," he said.
(Source: AIMS)
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