Day: 23 August 2021

The GR Engineering Services Ltd (ASX: GNG) share price is soaring on Tuesday as the company reported its FY21 results.

The GR Engineering share price is now trading at $1.64, a 12.71% jump into the green.

Let’s uncover how GR performed this year.

GR Engineering share price lifts on record revenue and strong earnings

The company outlined a number of investment highlights in its report, including:

• Record revenue in FY21 of $392.4 million, also a 76.4% year-on-year growth schedule
• All-time record EBITDA of $37.2 million, up from $11.3 million the year prior
• Strong operational cash flows with cash at bank of $69 million – an 84% year-on-year increase
• Profit before income tax (PBIT) of $33.7 million, from a loss of $9.7 million
• Net profit after tax (NPAT) of $14.9 million, up from a loss of $4.7 million a year ago
• Final dividend of 7 cents per share, fully franked.

What happened in FY21 for GR Engineering?

The company outlined several progress points that could potentially impact the GR Engineering share price.

The most notable takeout from GR’s FY21 earnings is that it recognised record revenue of $392.4 million, which also signifies a 76% year-on-year growth.

Moreover, the company also achieved its record EBITDA this year of $37.2 million, a 292% increase.

In addition, GR reversed the loss it posted in NPAT and PBIT last year, growing both figures to around $15 million and $34 million respectively.

Moreover, the company also detailed several project completions in FY21, such as the Thunderbox past plant project and the Lake Way Potash project.

As well, the company announced a final dividend of 7 cents per share, fully franked, up from 5 cents per share in April 2021 and 4 cents per share in October 2020. Thus, shareholders will enjoy total dividends of 12 cents per share for FY21.

As such, the company recorded earnings per share (EPS) of 14.9 cents per share, well up from a loss of 4.7 cents per share in FY20.

GR Engineering consequently left the year with a net operating cash flow of $49.5 million, up from $11.2 million the year prior.

What did management say?

GR Engineering managing director Geoff Jones said:

GR Engineering achieved multiple project completions in FY21 that were on time and on budget. The safe and successful delivery of these projects reinforces GR Engineering’s reputation as a proven process engineering design and construction contractor.

Looking forward, Jones added:

Based on GR Engineering’s strong order book and balance sheet, the business is well placed to continue to deliver returns to its shareholders through FY22 and FY23.

What’s next for GR Engineering?

According to the company, GR has a “strong order book” that is concentrated in Australian projects.

Moreover, it has been “building its pipeline for both FY22 and FY23” and forecasts FY22 revenue in the range of $440 – $460 million.

In addition, GR’s order book contains five works that “will continue into FY22”, with an additional five work opportunities in the pipeline.

The GR Engineering share price has posted a year to date return of 32%, outpacing the S&P/ASX 200 Index (ASX: XJO)’s return of about 14% this year.

The post GR Engineering (ASX:GNG) share price lifts 12% on record FY21 revenue appeared first on The Motley Fool Australia.

More reading

• Energy sector leading the ASX 200 shares on Tuesday
• Oil Search (ASX:OSH) dividend reinstated following strong first-half results
• Why Ansell, Kogan, Monadelphous, & NIB shares are tumbling lower
• 4DMedical (ASX:4DX) share price lifts on 71% income increase in FY21
• The Superloop (ASX:SLC) share price slides on FY21 earnings

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Oil Search Ltd (ASX: OSH) dividend received a much-welcomed return today, after being suspended in the prior corresponding year. This came after the energy producer announced a strong first-half result for the 2021 financial year.

Undoubtedly, investors will be glad that the company has reinstated its dividend following a challenging time in its history.

Let’s take a peek at Oil Search’s first-half scorecard and the details regarding its upcoming interim dividend.

How did Oil Search preform in the first-half of FY21?

The Oil Search share price has rallied on the back of solid operational performance and strengthened market conditions.

For the 12 months ending 30 June 2021, Oil Search achieved US$667.7 million in revenue, up 7% on H1 FY20. The sound result benefited from a price recovery in oil and liquified natural gas (LNG) predominately in Asia. Higher realised prices coupled with management’s focus on reducing costs led to a significant improvement in the company’s financial health.

Furthermore, earnings before interest, tax, depreciation and amortisation and exploration (EBITDAX) also rose to US$489 million, reflecting an 8% increase.

On the bottom line, Oil Search posted a Net Profit After Tax (NPAT) of US$139 million. A stark contrast when comparing the company’s sizable US$266.2 million loss in the first-half of FY20.

In light of the robust performance, the Oil Search board decided to bump up its interim dividend to US3.3 cents per share.

Based on the current Oil Search share price of $3.76 apiece, this gives the company a trailing dividend yield of just over 1.21%. The payout ratio is 49% of H1 FY21’s NPAT.

Oil Search dividend key dates

Oil Search released the distribution amount and payment dates of its unfranked interim dividend for the 2021 financial year. Here’s a summary of the important dates Oil Search shareholders will need to know.

Ex-dividend date

The ex-dividend date will be 31 August 2021.

The ex-dividend date is when investors must have purchased Oil Search shares. If the investor does not buy Oil Search shares before this date, the dividend will go to the seller.

Record date

The record date for the Oil Search dividend is 1 September 2021.

This is the date where the company identifies which investors are on its register. Those who are on Oil Search’s books will be eligible to receive its upcoming dividend.

Payment date

The payment date for Oil Search’s final dividend will be 21 September 2021.

The post Oil Search (ASX:OSH) dividend reinstated following strong first-half results appeared first on The Motley Fool Australia.

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• What happened to the Oil Search (ASX:OSH) share price last earnings season?
• 5 things to watch on the ASX 200 on Thursday
• Santos (ASX:STO) share price slumps following half-year results
• This leading fund manager thinks these ASX shares might be buys

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is following the lead of US markets and pushing higher. At the time of writing, the benchmark index is up 0.3% to 7,512.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Ansell Limited (ASX: ANN)

The Ansell share price has sunk 10% to $36.46 after the release of its full year results. Thanks to COVID-19 tailwinds, the company reported a 57% lift in net profit to US$248 million. However, this fell short of the consensus estimate of US$256 million. Also weighing on sentiment was its outlook. Management advised that it expects demand for medical PPE to taper off as COVID-19 impacts lessen. It also warned that disruptions to its factories and suppliers could weigh on costs.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 14% to $11.30 after the release of its full year results. For the 12 months ended 30 June, the ecommerce company reported gross sales growth of 52.7% to $1,179 million but an 86.8% decline in net profit after tax to $3.5 million. The latter was driven by inventory issues. Unfortunately, FY 2022 has started poorly, with the company reporting a small increase in gross sales and an 80% reduction in EBITDA.

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price is down 13% to $10.21. In FY 2021, the engineering company reported an 18% increase in revenue to $1.95 billion and a 29% lift in net profit after tax to $47.1 million. However, its cash flow generation was poor and its outlook was soft. Management warned that revenues would be lower in FY 2022. It also advised that the shortage of skilled labour will continue to be the major challenge.

NIB Holdings Limited (ASX: NHF)

The NIB share price is down a further 5% to $6.73. This appears to have been driven by a broker note out of Citi. In response to its results yesterday, the broker has downgraded NIB’s shares to a sell rating with a reduced price target of $6.30. It was particularly disappointed with the performance of its international business.

The post Why Ansell, Kogan, Monadelphous, & NIB shares are tumbling lower appeared first on The Motley Fool Australia.

More reading

• Kogan (ASX:KGN) dividend scrapped, share price plummets
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• FY 2021 results: Monadelphous (ASX:MND) share price crashes 14% on subdued outlook
• Kogan (ASX:KGN) share price sinks 8% after FY21 results and weak start to FY22
• Ansell (ASX:ANN) share price on watch after 57% profit surge

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Ansell Ltd. and NIB Holdings Limited. 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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The 4DMedical Ltd (ASX: 4DX) share price is climbing today after the medical technology company reported its FY21 earnings.

The 4DMedical share price is now $1.50, a 5.63% jump from the market open.

Let’s investigate further.

4DMedical share price jumps on strong growth in cash reserves

4DMedical outlined several investment highlights in its report, including:

• Increase in cash reserves of 860% to $80.9 million, with no debt
• Total income of $5.8 million, a 71% year-on-year increase
• 52% increase in operating costs to $24.5 million
• Net loss after tax of $21.4 million, which was down 3% from the year prior
• Successful initial public offering (IPO) by raising $50 million of investor capital.

What happened in FY21 for 4DMedical?

In a positive for the 4DMedical share price, total income growth of 71% was underscored by operating revenue and “other income” of $5.6 million, as per the release.

Moreover, as a result of its IPO, 4D was able to strengthen its balance sheet and grow its cash position by more than 860% to about $81 million year on year.

Additionally, 4D made “strong progress against its commercialisation strategy”, laying the groundwork with “the establishment of clinical trials and pilots”.

As of 30 June 2021, the company had received approval for eight clinical trials, investigating a range of applications for its “FDA-cleared and TGA approved” respiratory imaging platform. The conditions under examination in these trials span from pulmonary hypertension to constrictive bronchitis.

Recall that this imaging platform, the “XVD Scanner”, is the “world’s first dedicated lung scanner”, according to 4DMedical.

In addition, the company’s subsidiary Australian Lung Health Initiative was awarded a $28.9 million contract by the Australian Government’s Medical Research Future Fund (MRFF) to develop the XVD scanner. This initially saw a jump in the 4DMedical share price.

Furthermore, the company also secured “streamlined access” to the US Department of Defence, and also Veterans’ Affairs (VA), to implement contracts on its “XV Lung Ventilation Analysis Software (XV LVAS)”.

In a further possible boost for the 4DMedical share price, the company also secured another $46 million in capital raising to support its XVD Scanner while strengthening its balance sheet.

What did management say?

4DMedical founder and CEO Andreas Fouras said:

We are extremely proud of 4DMedical’s progress in what was a foundational year. Having successfully listed on the ASX, combined with ALHI’s MRFF grant and 4DMedical’s follow-on capital raising, the company is very well funded to support the commercialisation of our technology in one of the world’s largest markets.

We have seen a significant shift in momentum in the past few months, with our pipeline of clinical trials and pilots experiencing significant growth. Additionally, 4DMedical has been highly successful in attracting top class talent during the year, doubling our headcount to 95 employees over the period, ensuring that we are well placed to achieve our commercialisation goals in FY22 and beyond.

What’s next for 4DMedical?

4D is progressing another two pilot studies in the US with the Department of Defence and VA’s healthcare networks. Both of these networks “represent a significant opportunity for the company”.

Moreover, the company “expects key milestones to be delivered in 2022” in its XV LVAS scanner, by integrating with a “broader range of hospital equipment”, such as CT scanners.

Finally, “subsequent to the year’s end”, the company signed its “first pharmaceutical-focused contract” with Novartis. Under the contract, Novartis will use XV LVAS to “assess and validate pharmaceutical therapies” in patients with chronic obstructive pulmonary disease (COPD).

4DMedical share price snapshot

The 4DMedical share price has had a choppy year to date, posting a loss of 39% since January 1. It has also fallen around 8% in the last 12 months.

This has lagged the S&P/ASX 200 index (ASX: XJO)’s return of around 14% this year to date.

The post 4DMedical (ASX:4DX) share price lifts on 71% income increase in FY21 appeared first on The Motley Fool Australia.

More reading

• 4DMedical (ASX:4DX) share price soars on contract with $305b pharma giant
• Here’s why the 4DMedical (ASX:4DX) share price is gaining today

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Superloop Ltd (ASX: SLC) share price is slipping today following the release of the company’s results for financial year 2021 (FY21).

Right now, the Superloop share price is 93 cents, 4.62% lower than its previous close.

Superloop share price slumps on dropped dividend

Here’s how the telecommunications services company performed over FY21:

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $18.2 million, excluding acquisition costs. Up 34% on those of FY20.
• Loss of $31.9 million – that’s 22% better than Superloop’s FY20 loss
• $110.7 million in total revenue
• Operating cash flows of $15.1 million
• No dividend

The company’s underlying EBITDA was $17.5 million – a 108% increase on that of FY20.

Of the company’s revenue, $62.4 million came from its connectivity segment. That segment includes Superloop’s fibre infrastructure and high-performance network solution businesses and its fixed wireless wholesale and corporate products.

The company’s broadband segment contributed $41.8 million to its bottom line. The broadband segment includes Superloop’s Guest WiFi and Consumer Home Broadband products.

Finally, its services segment, which includes its cyber security and web filtering solution, CyberHound, and non-core cloud managed services, brought in $6.3 million.

Superloop also received JobKeeper during FY21. Further, its operating expenditure was reduced by 17% and its capital expenditure remained stable at $14.6 million.

Superloop ended the period with $89.7 million in cash with $62.5 million in interest-bearing loans and borrowings.

What happened in FY21 for Superloop?

FY21 was a productive year for Superloop and its share price.

The company’s Consumer Home Broadband products saw a 62% growth in subscribers.

Superloop also completed a $100 million equity raise. The funds went towards its acquisition of Exetel which it completed earlier this month.

It also refinanced its debt. By doing so, Superloop increased its debt facility to $92.2 million with more favourable terms.

Finally, Superloop’s student accommodation and hotel clients were hit hard by COVID-19. As a result, Superloop’s Guest Wifi platform struggled through FY21.

What did management say?

Superloop’s remuneration and nomination committee’s chair Tony Clark commented on the news driving the company’s share price downwards today:

For Superloop, FY21 was a year where many highlights were realised whilst we continued to face the ongoing challenge presented by COVID-19.

What’s next for Superloop?

Here’s how Superloop plans to boost its share price in FY22:

According to Superloop, it’s going to focus on boosting growth and monetising its network assets in the near term.

It believes the speed at which it can achieve revenue growth is a key factor of the market’s valuation of the company.

The company says it will be working to target larger markets, win and retain more businesses, consider mergers and acquisitions, and increase its sales.

Superloop states growth and transmission and storage of data should underpin demand for its services in the Asia Pacific region.

It will also be simplifying its operating platform and maintaining a strong and flexible balance sheet.

Superloop share price snapshot

Today’s fall included, the Superloop share price has dropped 11% year to date. It has also fallen 18.7% since this time last year.

The post The Superloop (ASX:SLC) share price slides on FY21 earnings appeared first on The Motley Fool Australia.

More reading

• 4DMedical (ASX:4DX) share price lifts on 71% income increase in FY21
• Kuniko (ASX:KNI) share price jumps 500% on ASX debut
• SEEK (ASX:SEK) share price drops despite tripling its dividend in FY 2021
• Kogan (ASX:KGN) dividend scrapped, share price plummets
• Western Areas (ASX:WSA) share price falls after last year’s $32 million profit turns to $8 million loss

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended SUPERLOOP FPO. 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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The Kuniko Ltd (ASX: KNI) share price was a 5-bagger on open, surging to an intraday high of $1.05 within its first three minutes on the ASX.

About the Kuniko share price

Kuniko is a spin-off of Vulcan Energy Resources Ltd (ASX: VUL) and its non-core Norwegian battery metal assets.

The spin-off enables Vulcan to fully focus on the development of its core Zero Carbon Lithium project while Kuniko will focus on the development of copper, nickel and cobalt projects in Scandinavia.

Kuniko’s initial public offering successfully raised ~7.8 million at an offer price of just 20 cents per share.

At the time of writing, the Kuniko share price is trading at 94 cents, or 370% higher than its offer price.

Kuniko’s projects

Kuniko will be focused on exploration programs to determine the economic viability of its projects, with a strict mandate to maintain a net zero carbon footprint throughout exploration, development and production.

The focus will be on the company’s 262km2 Nickel-Cobalt-Copper (Ni-Cu-Co) licence portfolio which includes:

• South-west Norway tenements: Ni-Cu-Co projects in the historically important Feøy and Romsås mining districts located in south-western Norway
• South-central Norway cobalt tenements: Copper-Cobalt-Gold project, part of the historically important Skuterud mining district of central-southern Norway, previously the largest cobalt mining area in the world
• South-central Norway copper tenements: Undal Cobalt-Zinc-Copper project and Vangrøfta Copper-Cobalt-Gold projects located in the Trondheim region of central Norway

The company has budgeted $4.15 million worth of exploration activities for the first two financial years. This could mean a number of catalysts for the Kuniko share price as geophysics, sampling and drilling results are released.

What’s the hype behind the Kuniko share price?

Kuniko was created by the same team as Vulcan Energy, an emerging ASX lithium producer whose share price surged from 60 cents to $14 in the past 12 months.

Moving forward, the company has a highly credible and experienced team to progress exploration. This includes its executive chairman, Gavin Rezos, who was the non-executive chairman of Vulcan Energy.

Kuniko’s prospectus also highlights that “in recent years there has been an increasing demand for battery metals including copper, nickel and cobalt, specifically in the EU as a result of change in policy by EU governments seeking to dramatically reduce carbon emissions”.

The post Kuniko (ASX:KNI) share price jumps 500% on ASX debut appeared first on The Motley Fool Australia.

More reading

• Why Charter Hall, IGO, Vulcan, & Z Energy shares are storming higher
• Why the Vulcan Energy (ASX:VUL) share price is jumping 7% today
• Why the Vulcan (ASX:VUL) share price is flying higher today
• Why Baby Bunting, Galan Lithium, Suncorp, & Vulcan shares are sinking
• Here’s why ASX 200 lithium shares surged higher on Tuesday

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The SEEK Limited (ASX: SEK) share price is trading lower on Tuesday despite announcing a big dividend increase with its full year results.

At the time of writing, the job listings giant’s shares are down 0.5% to $31.37.

SEEK share price lower despite large dividend increase

For the 12 months ended 30 June, SEEK reported a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax excluding significant items to $141 million.

Things were even better if you look at its continuing operations. Revenue from continuing operations increased 17% to $760 million and net profit from continuing operations jumped 68% to $135 million.

This was driven by a strong performance from the SEEK Australia and New Zealand (ANZ) business. It grew its revenue by 40% to $541 million thanks to a small and medium enterprise (SME)-led recovery.

The SEEK ANZ business reported record ad volumes in the second half of the year amid easing COVID-19 restrictions. Its market position also remained strong despite intense competition. This led to SEEK reporting an average of 40 million monthly site visits. This represents 10% growth on pre-COVID-19 levels.

Thanks to this strong form, the SEEK dividend grew strongly year on year.

What did the SEEK Board declare?

The SEEK Board declared a fully franked final dividend of 20 cents per share. Combined with the interim SEEK dividend of 20 cents, this brought its full year dividend to 40 cents per share.

This is triple the solitary interim dividend of 13 cents per share in FY 2020 that was declared in February but paid in July last year. It is, however, down a touch from the pre-COVID dividend of 46 cents per share paid in FY 2019.

Eligible shareholders can now look forward to being paid the final SEEK dividend of FY 2021 in six weeks on October 5.

The post SEEK (ASX:SEK) share price drops despite tripling its dividend in FY 2021 appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• SEEK (ASX:SEK) share price on watch as revenue falls flat
• 5 things to watch on the ASX 200 on Tuesday
• Why this leading broker thinks the SEEK (ASX:SEK) share price is a buy
• 2 top blue chip ASX shares rated as buys

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SEEK Limited. 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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The S&P/ASX 200 Index (ASX: XJO) is having another smooth rise today so far, up 0.31% to 7,513 points at the time of writing. But one ASX 200 share is faring far worse today. That would be Kogan.com Ltd (ASX: KGN). The e-commerce company reported its FY21 full-year earnings report this morning before the market open. And investors are not taking too kindly to what Kogan had to show for itself.

The Kogan share price is currently hovering at $11.38 a share, down a nasty 13.29% today so far. That’s a pretty definitive ‘don’t like it’ from investors, it seems.

So as we covered this morning, Kogan did report a 56.8% increase in revenues to $1,179 million. It also reported a 46.9% jump in active customers to just over 3.2 million, and a 61% increase in gross profit to $203.7 million.

However, as my Fool colleague James reported this morning, “Despite delivering a 56.8% increase in revenue, inventory management issues ultimately led to the company reporting an 87% reduction in net profit after tax to just $3.5 million”.

This was driven by a 123% rise in variable costs to $44.9 million.

No dividends for Kogan shares

But perhaps the most startling piece of news from Kogan this morning was the announcement that the company will not be paying a dividend for the period.

Here’s what management said on the matter in the earnings report this morning:

Kogan.com has a strong balance sheet, and attractive short-term and long-term growth opportunities. To support the Company with its growth plans, the Board has decided to conserve cash for business investment and growth purposes and has paused dividends – having not declared a FY21 final Dividend.

This might come as a surprise for even long-term investors. Kogan has paid out two dividends every year since 2017 – including over 2020. It has also been steadily ratcheting up these payments.

The past two dividend payments the company doled out were an interim dividend of 16 cents per share that was paid out back in May. And a final dividend of 13.5 cents per share from October last year. In contrast, the company’s first dividends back in 2017 came in at 3.9 and 3.8 cents per share respectively

Those two payments are enough to give Kogan shares a trailing dividend yield of 2.59% on current pricing.

Given the savagery of investors’ reaction to Kogan’s earnings today, it’s possible that many investors are reacting to this halt of Kogan’s dividends. As such, this might be a primary catalyst behind today’s steep share price drop for the company.

At the current Kogan share price, the company has a market capitalisation of $1.39 billion. It also has a price-to-earnings (P/E) ratio of 27.95.

The post Kogan (ASX:KGN) dividend scrapped, share price plummets appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• Kogan (ASX:KGN) share price sinks 8% after FY21 results and weak start to FY22
• 5 things to watch on the ASX 200 on Tuesday
• These are the 10 most shorted ASX shares
• Here’s how the Kogan (ASX:KGN) share price responded last reporting season

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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The Western Areas Ltd (ASX: WSA) share price is falling after the company released its full-year results for FY21.

At the time of writing, shares in the minerals company are trading for $3.10 – down 1.9%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.32% higher.

Let’s take a closer look at today’s announcement.

Western Areas share price slumps on 16% fall in revenue

• Revenue fell 15.6% on the prior corresponding period (pcp) to $257 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $73.5 million – down 39.7% on the pcp. The EBITDA margin fell 10 percentage points to 29%.
• Net loss after tax of $7.7 million compared to $31.9 million NPAT in pcp.
• Net cash inflow of approximately $6 million.
• No dividend paid for the financial year. In FY20, 2 cents per share was paid out to investors.

What happened in FY21 for Western Areas?

The price of nickel plays a key role in the movement of the Western Areas share price. In FY21, nickel appreciated 42.8% although the company didn’t capitalise.

Western Areas shares experienced a massive shock in October when it downgraded its nickel forecast at its Flying Fox mine by 2,000 tonnes. As well, the company said unit costs would be higher than anticipated.

Nickel demand is surging as more consumers buy electric vehicles. Nickel is a key component of electric vehicle batteries. While the alloy metal had a great FY21, the Western Areas share price was not so impressive.

What did management say?

Western Areas Managing Director Dan Lougher said FY21 was “a tale of two halves”:

I am proud of the professional and resilient performance of the technical team which successfully overcame the mine production difficulties encountered in the first half to enable the improved second half production and costs performance. Ultimately it was this turn around that allowed us to deliver into updated guidance for FY21.

At Odysseus, our new long life mine continues to advance towards production of first ore in this September quarter, which will mark a very significant milestone in its expected 10 plus year mine life. Odysseus remains one of the few long-dated supplies of nickel sulphide to enter the market in the coming years, just as the EV market continues to drive nickel demand for delivery into the EV battery supply chain.

What next for Western Areas

The Western Areas share price rocketed in early August after the company and IGO Ltd (ASX: IGO) confirmed IGO was looking to acquire Western Areas.

At the time, the company said nothing was confirmed and this has still not changed as at the time of writing. It’s notable Andrew “Twiggy” Forest bought a 10% stake in the company in August as well.

Western Areas also gave a guidance for FY22 in today’s release. The company says it expects to produce between 16,000 and 17,000 tonnes of nickel at a unit cost of $4.25 to $4.65 per pound.

Western Areas share price snapshot

Over the past 12 months, the Western Areas share price has increased 28%. It has outperformed the ASX 200 by almost 6.5 percentage points.

Western Areas has a market capitalisation of around $1 billion.

The post Western Areas (ASX:WSA) share price falls after last year’s $32 million profit turns to $8 million loss appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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The Monash IVF Group Ltd (ASX: MVF) share price is gaining in intraday trade, up 3% to 99 cents per share.

This follows on the release of the reproductive services provider’s results for the 2021 financial year ending 30 June (FY21).

Monash IVF share price gains on FY21 results

• Revenue of $183.6 million, increased 26.3% from $145.4 million in FY20
• Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37.1% to $47.7 million
• Adjusted net profits after tax (NPAT) increased 61.5% to $23.3 million, beating guidance of $21-23 million
• Reported NPAT increased 16.9% to $25.5 million
• $32.8 million of Free Cash Flow generation

What happened during the reporting period for Monash IVF?

Over the course of the 2021 financial year, Monash IVF reported a 36.6% increase in the number of its Australian Stimulated Cycles (STIMS). It attributed much of this to broader industry growth as well as the company making some market share gains.

Internationally its STIMS numbers reached 208 cycles, up 25.1% year-on-year.

Ultrasound scan volumes also performed strongly compared to FY20, increasing by 12.9%.

Monash IVF also opened its flagship clinic in Sydney and appointed 5 Fertility Specialists and a Medical Director of Genetics. The company flagged additional new clinics opening in FY22.

The company said that the first quarter of the financial year saw it servicing the pent-up demand from deferred IVF treatments, which had been temporarily suspended during the early COVID lockdowns.

What did management say?

Commenting on the results, Monash IVF’s CEO, Michael Knaap said:

Our FY21 financial performance was strong and ahead of market expectations and was driven not just by strong industry growth, but also through implementing our own growth initiatives to increase our market share and build for future sustainable growth…

We believe there is a fundamental shift in the community whereby the on-going Pandemic has changed the mindset of our patient cohort, leading to greater focus on family, health and wellbeing and resulting in re-direction of priorities towards family extension. This shift is driving industry growth and is expected to continue.

Knapp said the company has improved its clinical pregnancy rates by 4.5% since 2018, “following a huge amount of effort put into improving outcomes for our patients including harmonisation of laboratory protocols and new innovation”.

What’s next for Monash IVF?

Monash IVF said its strong balance sheet puts it in a good position to get through the ongoing pandemic, as well as optimising “future earnings through strategic and operational gains” made during the past financial year.

Based on there being no major increase in adverse impacts from the pandemic, management is “confident” the company can grow revenue and earnings in FY22.

Knapp said, “With a growing pipeline of new patient enquiries and registrations, we are confident and well placed for sustainable future growth.”

The Monash IVF share price is up 68% over the past 12 months.

The post Monash IVF (ASX:MVF) share price up 3% on guidance beating profits appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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