The Seven Group Holdings Ltd (ASX: SVW) share price is falling in morning trade today, down 2.73% at $22.48 at the time of writing.
Let’s look at the Seven Group’s results for the first half of the 2021 financial year (H1 FY21).
What financial results did Seven Group report?
In this morning’s ASX release, the diversified investment company reported its trading revenue increased 4% year-on-year to reach $2.4 billion.
Underlying earnings before interest and tax (EBIT) of $396 million was down 5% on the H1 FY20 results.
Seven Group’s underlying operating cash flow increased 4% compared to the prior corresponding period, to $367 million.
The company’s reported an underlying net profit after tax (NPAT) of $247 million, a decrease of 3% year-on-year, while underlying earnings per share (EPS) also dropped 3% to 73 cents.
The final dividend of 23 cents per share (cps), fully franked, was up 10% year-on-year.
Management commentary
Commenting on the results, Seven Group CEO Ryan Stokes said:
We are pleased to deliver group revenue growth and underlying EBIT growth for WesTrac and Coates. Our industrial services portfolio is benefitting from accelerating mining production and economic stimulus measures to generate building and infrastructure activity. During the half, we further increased our exposure to industrials and the growing pipeline of infrastructure projects through our investment in Boral.
While our energy portfolio was impacted by lower realised oil prices during the half, Beach has remained active with drilling success at Enterprise-1, FID taken on Waitsia Stage 2 and new asset acquisitions to consolidate its East Coast gas position.
Addressing the growing issue of corporate sustainability policies, Stokes said Seven Group Holdings would achieve net-zero greenhouse gas emissions by 2040.
Seven Group share price snapshot
The company has performed strongly in the past 12 months, with the exception of last year’s COVID-driven market meltdown which saw the Seven Group share price tumble 56% from 20 February through to 23 March.
Shares are up 144% from the March low, and running 16% higher over the past 12 months. That compares to a 3% loss on the S&P/ASX 200 Index (ASX: XJO).
The Seven Group share price is down 4% year-to-date.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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