Day: 23 August 2021

The Perenti Global Ltd (ASX: PRN) share price is tumbling in intraday trade on Tuesday, down 9% at the time of writing.

This comes as the ASX mining services company released its results for the financial year ending 30 June (FY21) this morning.

Perenti share price slides following FY21 results

Here are the highlights of what the company reported:

• Revenue of $2.02 billion, compared to $2.04 billion in FY20
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $380.0 million, down from $443.8 million the previous year
• Net profit after taxes (NPAT) of $77 million, down from $110 million in FY20
• Final dividend of 2.0 cents per share (cps), unfranked, bringing FY21 total dividend to 5.5 cps

(*Note, the above results are all underlying)

What happened during the reporting period for Perenti?

Starting with the headwinds faced during the financial year, Perenti said it faced negative impacts from COVID-19 on its international operations. It also pointed to a tighter Australian labour market and the strengthening Australian dollar, which was 14% stronger on average in FY21 than in FY20.

Perenti said its continued focus on working capital management delivered operating cash flow (before interest and tax) of $398.9 million. That saw an improvement of its EBITDA to operating cash flow conversion to 105%, up from 96% in FY20.

The company also refinanced its US denominated high-yield bonds, with US$450 million of Guaranteed Senior Unsecured Notes issued at a lower interest rate.

As at 30 June, Perenti had available liquidity of $567.9 million, down from $605.5 million in FY20.

The dividend record date is 6 October. It will be paid on 20 October 2021.

What did management say?

Commenting on the results, Perenti’s CEO Mark Norwell said:

Our Underground business continued to be a standout performer, delivering a third consecutive year of earnings growth with a strong FY21 contribution. Impressively, this growth has been delivered in a year where we saw the slower than anticipated ramp up at several recently secured international projects due to the prolonged, and ever-changing, nature of the COVID-19 pandemic.

As expected, due to the planned contraction of our Surface Mining business following our strategic transition out of Yanfolila and Boungou, FY21 revenue, EBIT(A) and margins were softer than FY20. Pleasingly during the second half of FY21, earnings and margins generated by the Surface business more than doubled compared to the first half.

What’s next for Perenti?

A key part of the company’s growth plan is its technology driven service offering, idoba, launched in July.

Norwell said, “Through idoba we plan to improve our competitive advantage by developing a unique capability in emerging digital mining, technology and innovation.”

As at 30 June, Perenti had 3 years’ work in hand of $6.6 billion and a tender pipeline of $11.0 billion.

Based on the assumption the pandemic impacts don’t get worse, Perenti forecast FY22 revenue of $2.0-2.2 billion and EBIT(A) of $165-185 million. Those projections are also based on an Aussie dollar to green back exchange rate of 75 cents.

The Perenti share price is down 34% over the past 12 months.

The post Perenti (ASX:PRN) share price tumbles as profits take hit in FY21 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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The MNF Group Ltd (ASX: MNF) share price is rocketing higher on Tuesday following the release of its full year results.

In morning trade, the VoiP-focused technology company’s shares jumped 17% to a multi-year high of $6.76.

MNF share price rockets after beating guidance

• Recurring revenue increased 12% to $113.2 million
• Recurring gross profit up 14% to $68.1 million (total gross profit $102.2 million)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 13% to $43.1 million (guidance: $40 million to $43 million)
• Underlying net profit after tax before amortisation up 16% to $19.2 million
• Full year dividend of 7.6 cents per share, up 25% year on year
• Balance sheet of over $100 million in cash and undrawn debt
• Outlook: No guidance but growth in July
• 2030 target of 100 million phone numbers

What happened in FY 2021 for MNF?

As you might have guessed from the MNF share price reaction today, the company was in fine form during FY 2021.

While its overall revenue declined 5% during the 12 months to $218.7 million due to lower global roaming and audio-conferencing usage, MNF continued to grow where it arguably matters most. Its high-quality recurring revenue increased 12% to $113.2 million and recurring gross profit lifted 14% to $68.1 million. The latter now makes up two-thirds of its gross profit, with management aiming to take this to 80% over the long term.

Key drivers of this growth were a 29% increase in phone numbers to 5.8 million and a Net Revenue Retention (NRR) rate across its top 10 customers of 115%. This means that its top 10 customers are not just staying on board, they are lifting their spending.

What did management say?

MNF’s CEO, René Sugo, was rightfully pleased with the 12 months.

He said: “After a strong start to the year, I am pleased to report we have ended the 2021 financial year at the top end of market guidance, achieving solid performance across all metrics, including record EBITDA of $43.1 million and a 29% growth in phone numbers.”

“I’m particularly proud of the progress we have made against our strategy during the year, as we build MNF into a world-class software company. We completed the divestment of parts of our Direct business, aligning our business to wholesale revenue and the multi-billion-dollar opportunity we see ahead of us.”

What’s next for MNF?

Following the divestment of its direct business, MNF is refreshing its strategy.

Mr Sugo explained: “MNF has refreshed its strategy for FY22 to focus on three areas to build MNF into a world-class software company. The new strategy seeks to simplify the business, build best in-class software capability and network, and scale and expand throughout Asia-Pacific both organically and through acquisition, driving short term revenue and margin growth and medium term EBITDA.”

The CEO also revealed that the company has set itself a bold growth target over the remainder of the decade and aims to increase the phone numbers on its network significantly from 5.8 million currently.

“Enabled by the most experienced industry professionals, a strong culture and a genuine commitment to sustainability, MNF’s refreshed strategy underpins its new strategic goal: to reach 100 million numbers on network by 2030,” he added.

The company’s expansion across the Asia-Pacific market is expected to be a key driver of this.

Mr Sugo commented: “Our new strategy will support MNF to achieve its new 2030 vision, and sets a clear path for global expansion, with the goal to reach 100 million numbers on our network by 2030. This will be achieved by increasing our market share and expanding our presence across Asia-Pacific. Singapore provides the stepping-stone into more opportunities in APAC. Now, supported by a strong balance sheet, we will further invest in our three business divisions, to capture further market share and expansion across the region.”

This appears to have gone down well with investors, judging by the MNF share price performance today.

And while no guidance has been given for FY 2022, MNF revealed that it has started the new financial year positively.

“MNF continues to benefit from the increased utilisation of collaboration and communications software applications due to the COVID-19 pandemic. The business has had no immediate impact due to current lockdowns and July 2021 trading showed continued growth,” he concluded.

The MNF share price is up 53% since the start of the year.

The post MNF (ASX:MNF) share price rockets 17% on strong result and bold growth targets appeared first on The Motley Fool Australia.

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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 MNF Group Limited. The Motley Fool Australia owns shares of and has recommended MNF Group 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 RPMGlobal Holdings Ltd (ASX: RUL) share price is slipping this morning following the release of the company’s financial year 2021 (FY21) earnings.

Right now, the RPMGlobal share price is $1.875, 4.09% lower than it was at yesterday’s close

RPMGlobal share price slumps on $5.5 million loss

Here are the mining industry consultant, technology, and development solutions company’s earnings for FY21:

• A 685.7% greater loss than that of FY20. The company ended the period down $5.5 million
• Net revenue down 2.8% to $66.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $5.2 million, a 30% increase on that of FY20
• Total annual recurring software revenue of $38.7 million

As you can see, RPMGlobal didn’t have a great year. However, it clarified that its $66.9 million of net revenue didn’t include $43.9 million worth of software licenses sold during the financial year, but that the attributable revenue will be reported over the next 3 to 5 years.

RPMGlobal received $3.7 million from various government COVID subsidies around the world during FY21. It also paid $2.2 million to acquire Revolution and IMAFS.

Revenue from RPMGlobal’s GeoGAS business decreased by 2% to $4.1 million in FY21. Following the end of the period, RPMGlobal devested GeoGAS stating GeoGAS’ coal focus contrasted with RPMGlobal’s work toward sustainability.

RPMGlobal ended FY21 with $44.6 million of cash in the bank and no debt.

What happened in FY21 for RPMGlobal?

COVID-19 hit RPMGlobal hard, and its share price is feeling it today.

The company’s business was impacted greatly as mining companies reduced their project load to focus on protecting themselves from COVID-19 and associated restrictions.

RPMGlobal used the downtime to evolve its product suite. Over the past 12 months, it began offering cloud solutions. Right now, 3 customers are using RPMGlobal’s new Haulage as a Service (HaaS) cloud solution.

Additionally, all the company’s customers’ transaction volumes are increasing as they move to cloud services across other operations.

Adoption of RPMGlobal’s XECUTE also increased in FY21. 12 more miners committed to the product over the period.

RPMGlobal extended XECUTE’s functionality with the release of its new module, Staged Stockpiles, during the financial year just been.

Since the start of FY21, RPMGlobal has signed 39 new customers onto new product contracts. The company expects that, over time, these customers will buy additional products from its suite.

RPMGlobal also acquired IMAFS Inc in October 2020, and Revolution Mining Software in July 2020.

What did management say?

RPMGlobal’s chair, Stephen Baldwin, commented on the results driving the company’s share price downwards today, saying he hopes FY22 will be a better year for the business:

Financial Year 2021 was a year dominated by COVID. All of our operations around the world were affected… I am pleased to report that even under such trying conditions the business continued to grow…

While international travel restrictions continue to impact our advisory business, we have seen a lift in demand for our metals and new [environmental, social, and governance (ESG)] divisions. There is significant activity in the mining industry currently and as such we expect a better year from our advisory business in FY2022 than it achieved in FY2021…

At a time when other software vendors to the mining industry were reducing their software investments, due to the impacts of COVID, RPM once again increased its investment with the acquisitions of Revolution Mining Software Inc in July 2020 and IMAFS Inc in November 2020.

What’s next for RPMGlobal?

Here’s what RPMGlobal expects could drive its share price in FY22:

The company stated that, while many forecast the FY22 market will be mostly positive, it’s wary that commodity prices are expected to remain flat. Additionally, it expects the price of iron ore will drop as Brazil ramps up its production and China develops more iron ore projects of its own.

However, it expects precious metals’ prices to remain strong. That may see precious metals miners investing in both grass root project development and organic growth through mergers and acquisitions.

Additionally, RPMGlobal believes its focus on ESG will see demand for its services boost. Its currently working to build out its ESG advisory team and incorporate ESG support into its product suite.

To support future ESG movements, RPMGlobal acquired Nitro Solutions, an Australian ESG mining advisory business, in July 2021.

RPMGlobal invested $13.2 million on its software products during FY21 and is now aiming to release 4 new products during FY22. These include Pit-to-Port, AMT Mobile, Multi-Period Scheduling Optimiser, and Gas Drainage. It will also release support for hydrogen vehicles and continue moving its software to the cloud.

RPMGlobal share price snapshot

The RPMGlobal share price is currently 45% higher than it was at the start of 2021. It is also 47% higher than it was this time last year.

Over FY21, RPMGlobal’s market capitalisation increased by $172.8 million to reach $408.4 million. Right now, it’s around $430 million.

The post RPMGlobal (ASX:RUL) share price slumps on mixed FY21 results appeared first on The Motley Fool Australia.

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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 RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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 Uniti Group Ltd (ASX: UWL) share price is flying higher in early trade on Tuesday. This follows the telecommunications company reporting its full-year results for FY21 this morning.

At the time of writing, Uniti shares are up 5.85% to $4.16. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is 0.3% in the green.

Uniti share price jumps on record results

• Record revenue, up 175% to $159.9 million
• Underlying earnings before interest, tax, depreciation, and amoritisation (EBITDA) of $93.7 million, up 254%.
• Record operating free cash flow of $64.2 million
• Record earnings of $29.2 million, reflecting an increase of 83% from FY20
• Completed the acquisitions of HabourISP, OptiComm, and Velocity during FY21
• 501,198 secured premises (excluding Velocity) as at June 2021, representing an increase of 15% in the past 6 months

What happened in FY21 for Uniti Group

The Uniti Group share price is rallying on Tuesday after reporting its full-year results. The market is bidding the telecommunications company’s shares higher after a record result on numerous fronts.

According to the release, Uniti achieved revenue of $159.9 million for FY21 representing an increase of 175% from the previous year. The stellar revenue increase has been the result of the company’s various acquisitions and increased number of secured premises.

Likewise, Uniti’s contracted order book has grown to 250,460 construction premises. The company’s national digital infrastructure footprint now spans 1,199 sites across Australia. This expansion has been met with optimism, pushing up the Uniti share price.

Furthermore, many investors will know that Uniti Group has been busily acquiring and integrating additional companies over the past year.

The combination of OptiComm and Telstra Velocity has enabled the company to create a substantial core telecommunications and technology infrastructure business during the year.

This push means Uniti now considers itself as the largest competitor to NBN Co in the fibre to the premise (FTTP) market.

However, as mentioned earlier in the year, Uniti’s board has advised it is unlikely to proceed with additional acquisitions in the short term.

Instead, the board is now moving to the next phase of driving organic growth in the consolidated business group. Although, management said it would not completely rule out asset acquisitions if they were to be complementary.

What did management say?

Commenting on the record result, Uniti Group Managing Director and CEO Michael Simmons said:

Uniti is a core digital infrastructure business with high earnings growth and high free cash after funding the infrastructure to generate the earnings.

In two and a half years, Uniti has transitioned from a loss making entity with market capitalisation of approximately $30M to an ASX200 business with an enterprise value fast approaching $3B. This has been achieved by investing in the right markets. And today we have a very low market share in these markets.

Additionally, in the letter to shareholders, Mr Simmons said:

For the reasons outlined in this letter, we believe the core infrastructure platform that we have established, and the simplified strategy to win new business in market, coupled with our already secured contract order book, is poised to deliver substantial organic growth.

What’s next for Uniti Group?

No specific guidance was supplied by Uniti Group in its full-year results. Though the mission is fairly clear — the company intends on driving organic growth through winning greater market share in greenfield markets.

Uniti’s market share in its core operating segments remains low. As such, this is still considered a sizeable opportunity for telecom challengers.

Uniti Group share price snapshot

The Uniti Group share price has delivered exceptional returns to shareholders over the past 12 months. While the S&P/ASX 200 Index (ASX: XJO) provided a solid return of 22%, Uniti shares climbed 174% during the same period.

These returns have continued in strength during the past month with the Uniti share price appreciating 21% in 1 month.

The post Uniti Group (ASX:UWL) share price soars on record revenue in FY21 appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 recommended Uniti Group 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 Viva Energy Group Ltd (ASX: VEA) share price is climbing after the company released its results for the 6 months up to 30 June.

At the time of writing, shares in the petroleum company are trading for $1.99 – up 1.27%. At one point, shares reached an intraday high of $2.05. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.25% higher.

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

Viva Energy share price jumps as gross profit more than doubles

Here are some of the highlights from Viva Energy’s half-year results:

• Gross profit of $789 million, which is up 114% on the prior corresponding period (pcp). Net profit after tax (NPAT) jumped 87.5% on the pcp to $112 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $256 million – up 125% on the pcp. This, however, is short of its last earnings update.
• $224 million of operating free cash flow before expenditure.
• An interim dividend of 4.1 cents per share (up 19.5% on the pcp). As well, the company will make a special cash payment of 6.2 cents per share after its divestment from the Waypoint REIT and will buy back $40 million worth of stock on-market. All up, Viva will return around $206 million in capital to shareholders.

What happened in the first half of 2021 for Viva Energy?  

Fluctuating oil prices have had a significant effect on the Viva Energy share price during this reporting period.

When oil prices were rising, Viva shares were rising. When Texas tea was on the downward slope, so was the Viva Energy share price. The Woodside Petroleum Limited (ASX: WPL) share price experienced a similar phenomenon.

In May, Viva and Ampol Ltd (ASX: ALD) share prices were boosted when the federal government announced a subsidy for both companies to maintain domestic oil refining capabilities.

Refineries will receive government support payments if their profit margin falls to, or becomes lower than, $10.20 per barrel of oil.

What did management say?

Viva Energy CEO and managing director Scott Wyatt said:

Viva Energy has delivered a strong result in the first half of 2021, with improved operational and financial performance across all parts of the business. Performance was driven by continued strength of our retail business, recovery within the commercial business, strong cost management, and improved refining conditions.

The company has been awarded a grant of up to $33.3 million for the establishment of 90ml diesel storage which will improve production and import economics, and further benefit from the proposed implementation of mandatory stockholding obligations. We also continue to make solid progress on our gas terminal, which remains the best-placed project to meet the looming Victorian gas shortfall expected in 2024, and have made good progress on other opportunities such as hydrogen for trucks and bus fleets. These projects are aimed at leveraging the strategic position we hold in the Victorian market.

He added:

Our retail business is benefiting from growth in the Liberty convenience business, the expansion of Shell V-Power to new markets, and the refreshment of Coles Express store network with our Alliance partner. Convenience and premium fuel sales continue to grow, and we are looking forward to further developing our fuel and convenience offerings with our partners as this marketplace continues to evolve.

What’s next for Viva Energy?

Viva Energy believes it is “well-positioned” to manage the short-term material impacts of COVID-induced lockdowns across the country. The group expects retail sales to quickly recover when restrictions ease in Sydney and Melbourne.

Viva Energy share price snapshot

Over the past 12 months, the Viva Energy share price has fallen by more than 6%. Year-to-date, conversely, Viva shares have appreciated by more than 5%.

Viva Energy has a market capitalisation of approximately $3.2 billion.

The post Viva Energy (ASX:VEA) share price lifts as $200m cash pledged to shareholders appeared first on The Motley Fool Australia.

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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 Alumina Limited (ASX: AWC) share price has tipped 1.52% higher to $1.675 this morning after the company released its half-year FY21 result.

The company invests worldwide in bauxite mining, alumina refining and aluminium smelting through its 40% ownership of Alcoa World Alumina and Chemicals (AWAC).

Alumina share price higher on solid dividends and positive outlook

The first half proved to be a challenging period for the Alumina share price as record bauxite and alumina outputs were offset by higher freight costs. Key financial highlights include:

• Net profit after tax (NPAT) of US$73.6 million, down 19% on the prior corresponding period
• Free cash flow available for dividends of US$98 million, up 21%
• Closing debt US$5.7 million (1H20: US$77.4 million)
• Interim dividend of 3.4 US cents per share, up 21%

What happened to Alumina in 1H21?

AWAC’s refineries performed strongly in the first half, achieving record production of 6.4 million tonnes. Cash costs of alumina production increased half on half due to a combination of factors including currency movements, new energy contracts and higher raw material costs, which was partially offset by an increase in the average realised price of alumina.

Alumina flagged that higher freight costs have had a negative impact on the Chinese alumina import parity price, which has caused a decline in prices over the latter part of the first half.

The company believes that when the factors such as disrupted shipping schedules, COVID protocols and low availability of ships is resolved, prices are likely to improve.

Overall, the decline in profit was largely a result of higher cash costs of production, partially offset by higher realised alumina prices.

Management commentary

Alumina’s CEO Mike Ferraro commented on the first half performance saying:

In challenging market conditions, Alumina Limited has been able to increase its dividend to shareholders by 21 percent.

AWAC’s low-cost assets were able to produce record bauxite and alumina outputs for a half year. Realised alumina prices were higher but API was constrained by significantly higher freight costs contributed to by global shipping disruptions. In addition, returns were offset by higher costs due to currency movements and unplanned outages. However, AWAC’s cash costs continue to remain in the lowest quartile of the global cost curve and our alumina refinery portfolio has the lowest CO2 emissions intensity amongst major refiners.

What’s next for Alumina

The Alumina share price has struggled to make headway this year, down 9.84% year-to-date.

The company is optimistic about the outlook of the global aluminium market, saying:

Global aluminium demand is now back to pre-virus levels, largely due to economies recovering post-COVID, helped by Government stimulus packages. This is expected to grow with further economic recovery and greater demand for aluminium in a decarbonising world, largely due to its lightweight properties and recyclability.

Investors can look forward to a solid dividend, with an ex-dividend date of Friday, 28 August.

The post Lower profits but higher dividend, Alumina (ASX:AWC) share price lifts on 1H21 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Scentre Group (ASX: SCG) share price is off to a strong start on Tuesday, up 4% in early trade.

This comes as the ASX 200 retail property group released its half-year financial results for the 6 months to 30 June earlier today.

Scentre share price lifts off on half-year results

Here are the highlights:

• Operating Profit increased 28.0% from the prior corresponding period (pcp) to $460.1 million (8.88 cents per security)
• Funds From Operations (FFO) increased 28.4% from the pcp to $463.4 million (8.94 cents per security)
• Statutory Profit of $400.4 million
• Dividend of 7 cents per share (no dividend was declared in the pcp)

What happened during the reporting period for Scentre Group?

During the 6 month period, Scentre reached annual sales through its platform of $23.4 billion, despite numerous lockdowns across Australia’s major cities.

Scentre’s share price could also be getting a lift after the company reported that demand for space in its Westfield Living Centres continued to be strong.

It completed 1,515 lease deals over the 6 month reporting period, signing on 619 new merchants. 98.5% of Scentre’s portfolio was leased as at 30 June.

The company will pay the dividend (a total payout of $362.9 million) to eligible shareholders on 31 August.

What did management say

Commenting on the half-year results, Scentre Group’s CEO Peter Allen said:

We have delivered strong operating performance even with a number of government restrictions in place. In those locations impacted less by lockdowns, we have seen trading conditions better than those experienced in the first half of 2019.

We collected $1.2 billion of gross rent during the first half of 2021, representing an increase of 37% or $325 million compared to the first half of 2020. Visitation rapidly rebounded when restrictions were eased. Customers want to return to our Westfield Living Centres as what we offer is integral to their lives.

Addressing the viral elephant in the room, Allen added:

All Westfield Living Centres have remained open during the period, operating with COVID Safe protocols and in line with the latest health and government advice. We are facilitating community access to COVID-19 vaccinations across all of our Westfield centres.

What’s next for Scentre Group?

Looking ahead, Scentre said it’s on track to launch its “aggregated click and collect platform” in the second half of 2021.

It expects to complete work for Cbus on the construction of a residential and office tower in Sydney in 2023.

Scentre’s $55 million entertainment, leisure and dining precinct development at Westfield Mt Druitt is expected to open in the first quarter of 2022.

The company said it has available liquidity of $5.7 billion, which is enough to cover all its debt maturities to early 2024. Scentre Group maintains “A” grade credit ratings with S&P, Fitch and Moody’s.

Management is aiming for a 14 cent per share full-year dividend payout for 2021, noting this is based on government virus restrictions “substantially” easing by the end of October.

The Scentre share price is down 5% over the past 6 months.

The post Scentre (ASX:SCG) share price leaps higher on 28% profits boost 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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It’s no secret the Afterpay Ltd (ASX: APT) share price has had some magnificent days on the ASX. Hence why it’s a favourite among many investors.

But when would you say was Afterpay’s shares’ best day ever?

Some might think it was 2 August 2021 when Afterpay and Square Inc announced they were to merge. Or, perhaps, it was way back when the market was only just cottoning onto Afterpay’s potential as many investors did on 19 July 2018.

However, they’d be wrong. The Afterpay share price’s best day ever was actually spurred by…. nothing. Seriously. On Afterpay’s best day ever on the ASX, the company hadn’t released a single piece of price-sensitive news for nearly a month. Oh, and did I mention, it came in the middle of a recession?

Keep reading on to find out more.

Afterpay’s best day on the ASX

The Afterpay share price’s best day on the ASX was Wednesday, 25 March 2020.

On Tuesday, 24 March 2020, Afterpay’s shares finished the day trading for $11.21. Then, on 25 March 2020, they closed at $15.00. That’s a whopping 33.81% gain.

Interestingly, the best day ever for Afterpay shareholders came only days after the company’s worst day ever. That was on March 18 2020 when Afterpay’s shares fell from $18.40 to $12.76 – or by 33.05% – for no obvious reason.

While The Motley Fool Australia had some theories as to why the Afterpay share price was soaring at the time, we couldn’t have predicted what would come next.

Over the 12 months following 25 March 2020, the Afterpay share price gained a massive 603% to reach $105.46.

Perhaps the lesson might be that hard financial times, like those visited on the ASX with the onset of COVID-19, tend to trigger volatility.

However, as Afterpay’s CEO and managing director Anthony Eisen told shareholders when Afterpay’s shares were at their lowest point in years, companies that are ready for tough times are more likely to push past them.

Afterpay share price snapshot

The Afterpay share price’s growth has slowed since early 2020. However, it’s still moving forward.

It has gained 11% year to date. It’s also 60% higher than it was this time last year.

Currently, shares in the buy now, pay later giant are going for $133.00 a piece.

The post When was the best ever day for the Afterpay (ASX:APT) share price? appeared first on The Motley Fool Australia.

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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 AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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 Austal Limited (ASX: ASB) share price is falling heavily on Tuesday morning. This comes after the shipbuilder released its full-year results for the 2021 financial year.

At the time of writing, Austal shares are down 13.55% to $2.17. It’s worth noting the Austal share price touched a four-month high of $2.51 last Friday.

Austal share price plummets on disappointing revenue hit

The Austal share price is sinking today following the company’s FY21 results for the 12 months ending 30 June, 2021. Here are some of the key results:

• Total revenue of $1,572 million, down 24.6% on the prior corresponding period (FY20 $2,086 million);
• Earnings before interest and tax (EBIT) of $114.6 million, down 12.1% (FY20 $130.4 million);
• Net profit after tax (NPAT) of $81.1 million, up 9.7% (FY20 $89 million); and
• Unfranked final dividend of 4 cents per share, bringing full-year dividend to 8 cents apiece.

What happened to Austal in FY21?

Austal advised that its financial results, predominantly revenue and EBIT, were in line with previous guidance estimates.

The company’s numbers were affected by an appreciation of the United States dollar, which translated into a negative impact for EBIT. In addition, the Littoral Combat Ship (LCS) program decline, COVID-19-related border closures and travel restrictions, and resourcing challenges also weighed in.

Nonetheless, the EBIT, despite the fall, was driven by enhanced shipbuilding margins, particularly in the US and Australasia operations.

This led Austal to achieve its second-highest NPAT in its history. Furthermore, 19 ships were delivered to customers, a record amount in a year. However, this didn’t stop the Austal share price from plunging this morning.

What did management say?

Austal CEO Paddy Gregg commented on the milestone achievement, saying:

I’m very pleased that Austal has delivered strong profit and earnings, as we strengthen our position to unlock significant long-term opportunities in the shipbuilding industry and broader defence sector.

…This is a testament to the durability of our operations and our ability to maintain a robust financial base, even amidst the challenges of a COVID-19 impacted environment in FY2021.

Importantly, the momentum we have generated by continuing to successfully deliver for key customers, despite COVID impacts, will enable the company to transition towards the next phase of business growth as our Littoral Combat Ship construction program winds down over the next three years.

What’s next for Austal in FY22?

Looking ahead, Austal expects market conditions for FY22 to remain similar to FY21, with the pandemic having a mixed impact.

Consequently, the company refrained from providing EBIT guidance for FY22. It anticipates the next market update will be given to shareholders at its annual general meeting later this year.

It will be interesting to see what effect that has on the Austal share price.

So far, Austal holds a current order book of $2.5 billion, running through until FY25.

Austal CEO Paddy Gregg also went on to talk about the wind-down of the LCS program for the next 3 years, adding:

Fortunately, we are progressing through this transition period from a position of strength with a healthy balance sheet; opportunities that are real and already visible; and a supportive US Government which is directly investing in the future of our facilities.

The post Austal (ASX:ASB) share price sinks 13% on weak FY21 result appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 Austal Limited. 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 Nitro Software Ltd (ASX: NTO) share price has edged 0.28% higher to $3.56 in early trade Tuesday after the company released its first-half results.

Nitro is a fast-growing Software as a Service (SaaS) company that provides document productivity solutions for individuals, small businesses and enterprises.

Nitro Software share price flat despite strong growth trajectory

Nitro’s first-half results reiterate a familiar narrative for fast-growing tech companies — you have to spend money to make money. Key highlights include:

• Annual recurring revenue (ARR) of $33.8 million, up 56% against the prior corresponding period (pcp).
• Revenue rose 26% to $24.1 million.
• Sales and marketing expenditure amounted to $14.0 million, up 62%.
• Research and development expenditure of $5.8 million, up 46%.
• General and administrative expenditure was 5.3%, up 22%.
• Operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved to a loss of $3.0 million

What happened to Nitro Software in 1H21?

The Nitro Software share price is up 12% year-to-date, performing in line with the broader S&P/ASX 200 Info Tech (INDEXASX: XIJ) index, which is up 6.2% year-to-date.

Nitro delivered “rapid” ARR and subscription revenue growth in the first half as the company continues to scale and bring new products to market.

The company’s key products, Nitro PDF Pro and Nitro Sign, both experienced a significant uplift in demand and usage in the first half.

Nitro PDF Pro reported a 91% increase in total activity by users, with 1.4 billion documents opened in the first half, up 48% year-on-year. Nitro Sign also reported a hefty 336% increase in business users, with over 1 million eSignatures, up 194% year-on-year.

Nitro has been making key investments in FY21, demonstrated by the significant lift in expenditure across sales and marketing, research and development as well as general expenditure.

Management addressed the jump in expenses, saying:

The benefits of the investments we have made – and continue to make – in our people, products and platform are clear in our financial results, with continued strong recurring revenue growth, increasing subscription sales, and industry-leading customer acquisition and retention numbers in a large global market that continues to grow.

The company maintained a strong balance sheet position at the end of the period, with a cash balance of $38.6 million with no debt.

Management commentary

Nitro’s co-founder and CEO Sam Chandler hailed the results, saying:

This was a transformational period for Nitro, with major milestones achieved as we continue to scale to meet accelerating customer demand for digital workflow productivity solutions in a post COVID, work-from-anywhere world.

Demand for our products and services shows no sign of slowing, with a 48% increase to 1.4 billion documents opened in Nitro Pro and over 1 million eSignature requests in 1H2021 – more than the whole of FY2020. There remains significant upside potential, with only 40% of US companies currently utilising eSign capabilities, and only 10% of those using them significantly, and much of the rest of world even further behind.

What’s next for Nitro Software?

The Nitro Software share price is within an arm’s reach of its 11 August all-time high of $3.78.

The company believes it is poised for growth, claiming “from new customers and products, to cross-sell opportunities and M&A, we have multiple avenues for continued growth”.

It was encouraging to see an FY21 guidance, which included:

• ARR between $39 million to $42 million (FY20: $20.2 million)
• Revenue between $47 million to $50 million (FY20: $19.1 million)
• Operating EBITDA loss between $9 million to $11 million (FY20: loss of $1.6 million)

The post Nitro Software (ASX:NTO) share price flat after 1H21 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 recommended Nitro Software 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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