Day: 23 August 2021

There are a lot of options for investors to choose from on the Australian share market.

Two that could be worth getting better acquainted with are listed below. Here’s what you need to know about these growing companies:

Nearmap Ltd (ASX: NEA)

The first ASX share to look at is Nearmap. It is an aerial imagery technology and location data company with operations in Australia and North America. Nearmap’s products give businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

Last week the company released its full year results and revealed annual contract value (ACV) grow of 26% to $128.2 million. This was driven by strong growth in its North American business, which reported ACV of US$44.5 million. This was up 54% from US$28.8 million a year ago.

Looking ahead, while no guidance was given with its results, management has a long term growth target in place. This is for ACV growth of 20% to 40% per annum, with underlying churn of less than 10%.

Morgan Stanley remains very positive on the company. Last week it retained its overweight rating and $3.20 price target on the company’s shares. This compares to the latest Nearmap share price of $2.10.

NEXTDC Ltd (ASX: NXT)

Another ASX growth share to look at is NEXTDC. It is Australia’s leading data centre operator with an expanding collection of world-class centres located across the country. But it isn’t settling for that, the company is currently looking to enter both the Singapore and Tokyo markets. If this expansion is a success, it could provide NEXTDC with a huge market opportunity to grow into.

In the meantime, NEXTDC continues to generate significant revenue and earnings in the local market. For example, during the first half of FY 2021, the company posted a 27% increase in data centre services revenue to a record $121.6 million and a 29% increase in EBITDA to $65.7 million. This was underpinned by a 33% lift in contracted utilisation to 71MW, a 16% lift in customers, and a 16% rise in interconnections.

The good news is that later this month a similarly strong full year result is expected to be announced. And with a large amount of its future capacity additions already contracted, this positive form looks set to continue for the foreseeable future.

UBS is bullish on NEXTDC. Its analysts currently have a buy rating and $15.40 price target on its shares. This compares to the latest NEXTDC share price of $13.62.

The post 2 excellent ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Which ASX companies are the top movers in the ASX 300 today?
• ASX 200 midday update: NIB sinks and Sonic falls on full year results
• Why Zip (ASX:Z1P) and these growth shares could be buys
• Nearmap (ASX:NEA) share price on watch after FY21 results
• How did the Nearmap (ASX:NEA) share price respond last earnings season?

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap 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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There are a group of ASX shares that many brokers like at the same time.

Brokers are constantly scouring the share market for potential investments that they believe are opportunities. If multiple brokers like a business simultaneously then that may suggest that it’s an opportunity. Or they may all be wrong at the same time.

At the moment, these two ASX shares are strongly liked by multiple brokers:

EML Payments Ltd (ASX: EML)

EML Payments is currently rated as a buy by at least three brokers, including UBS.

The broker currently has a price target of $4.80 on EML Payments, which suggest the EML share price could increase by around 25% over the next 12 months, if the broker is right.

The payments business recently reported its FY21 result. It revealed that gross debit volume (GDV) increased 42% to $19.7 billion, driving revenue up 60% to $194.2 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 65% to $53.5 million. Underlying net profit (NPATA) increased 54% to $32.4 million and operating cashflow rose 121% to $48.8 million.

The segment that experienced the lion’s share of the growth was general purpose reloadable (GPR), which saw revenue increase from $41.9 million to $113.5 million. Part of this growth was the PFS business contributing for a full 12 months, but the existing EML business also generated 34% of growth.

In FY22, the ASX share is expecting to generate underlying EBITDA in a range of between $58 million to $65 million.

Regarding the Central Bank of Ireland’s (CBI) regulatory action, EML said it has provided CBI with a detailed remediation plan addressing the raised concerns. This plan is expected to be substantively complete by the end of the 2021 calendar year, with remaining items finished by the end of the March 2022.

UBS said that the CBI action is an important positive when looking at what the market was expecting, and it seems EML is likely to keep its licence.

According to UBS, the EML share price is valued at 30x FY23’s estimated earnings.

Seven West Media Ltd (ASX: SWM)

Seven West is currently rated as a buy by at least four brokers, including analysts at Macquarie Group Ltd (ASX: MQG). The broker has a price target on the media business of $0.77. That implies the Seven West share price could increase by 75% over the next 12 months, if the broker is right.

Macquarie is positive on Seven West Media’s shorter-term prospects, though it also noted the increase of costs which are predominately from the Ashes and the Olympics.

Seven West reported that the metropolitan free to air TV advertising market rebounded strongly, up 25.8% in the second half of FY21 and up 11.5% for the whole of FY21.

Seven’s digital revenue increased by 78% year on year, with video on demand market growth of 55%.

There was a large increase in revenue from the ASX share, but operating expenses also declined by 7.5% to $1.02 billion (which excludes depreciation and amortisation). The ASX share’s underlying earnings before interest and tax (EBIT) soared 141% year on year to $229 million, whilst net debt reduced 40% to $240 million.

It made a statutory profit after tax of $318.1 million, up from a loss of $201.2 million in FY20.

The broker thinks that Seven West is valued at just 4x FY23’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

More reading

• EML (ASX:EML) share price plunges 8% after reporting record results
• When was the worst ever day on the EML (ASX:EML) share price chart?
• Seven West Media (ASX:SWM) share price falls 5% on FY21 earnings
• Why the EML (ASX:EML) share price is gaining today
• What’s going on with the EML Payments (ASX:EML) share price?

Motley Fool contributor Tristan Harrison 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 EML Payments. The Motley Fool Australia owns shares of and has recommended EML Payments and Macquarie 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week on a much-needed positive note after a poor run. The benchmark index finished the day 0.4% higher at 7,489.9 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market is expected to rise slightly on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 4 points higher this morning. This follows a very positive start to the week on Wall Street, which saw the Dow Jones rise 0.6%, the S&P 500 climb 0.85%, but the Nasdaq storm 1.6% higher.

Kogan results

The Kogan.com Ltd (ASX: KGN) share price will be on watch this morning when it releases its full year results. While the ecommerce company has pre-released some of its numbers, there’s still a lot to look out for. This includes its profit for the year, an update on its inventory issues, and a trading update for the first seven weeks of FY 2022. The latter is expected to have been boosted by lockdowns.

Oil prices jump

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a strong day after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 5.3% to US$65.42 a barrel and the Brent crude oil price has jumped 5.2% to US$68.54 a barrel. News of no new COVID cases in China and weakness in the US dollar gave oil prices a boost.

Gold price rises

It could be a good day for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher. According to CNBC, the spot gold price is up 1.3% to US$1,807 an ounce. Traders were buying gold amid doubts that the US Fed will taper soon.

SEEK results

The SEEK Limited (ASX: SEK) share price will be one to watch today when it releases its full year results. According to a note out of Goldman Sachs, its analysts expect the job listings giant to report a 1% increase in revenue to $1,588 million and a 20% jump in EBITDA to $498 million. The latter compares to SEEK’s guidance of $480 million and the market consensus estimate of $487 million. Looking ahead, Goldman expects “FY22 Revenue/EBITDA of A$1,166/$460mn vs. consensus A$1,166/$472mn).”

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, NIB plummets, Sonic drops
• Here are the top 10 ASX 200 shares on Monday
• How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
• These are the 10 most shorted ASX shares
• Here’s how the Kogan (ASX:KGN) share price responded last reporting season

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. 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 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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It is a fresh new week for the ASX reporting season. A handful of big-name companies reported results to the market today. However, these 3 companies experienced significant moves on the back of their earnings.

We’ll quickly unpack today’s results and then wrap things back up for tomorrow:

Those that reported on the ASX today

Charter Hall Group (ASX: CHC)

Shares in Charter Hall Group gained 6.5% after the property fund manager reported its FY21 full-year results. Investors responded with optimism after the group noted an 18.8% increase in its property investment portfolio value.

The takeaway points:

• Operating earnings of $284.3 million
• Operating earnings per security (OEPS) post-tax of 61.0 cents per share (cps)
• Statutory profit of $476.8 million, after tax attributable to shareholders
• 5% return on contributed equity
• Declared full year dividend of 37.9 cps

Ampol Ltd (ASX: ALD)

The Ampol share price moved to the downside after reporting on the ASX its full-year results for FY21. Shares in the fuel retailer sank 4.76% lower as shareholders took in the company’s NZ$2 billion proposition to acquire Z Energy.

The takeaway points:

• Fuels & Infrastructure EBIT up 86% to $208 million
• Convenience Retail EBIT increased 19.2% to $149 million
• Corporate costs lifted 12.5% to $18 million
• Group RCOP EBIT jumped 53.8% to $340 million
• RCOP net profit after tax up 70.8% to $205 million
• Fully franked interim dividend of 52 cents per share
• NZ$2 billion offer to acquire Z Energy

NIB Holdings Limited (ASX: NHF)

The NIB share price plummetted on Monday despite the health insurer reporting a meaningful rise in its full-year earnings for FY21. Shares in the company lost just over 11% after failing to impress the market.

The takeaway points:

• Total group revenue of $2.6 billion, up 2.9% on the prior corresponding period (FY20 $2.5 billion);
• Group expense claim of $2 billion, up 2.5% (FY20 $1.95 billion);
• Group underlying operating profit (UOP) of $204.9 million, up 39.5% (FY20 $146.9 million);
• Net profit after tax (NPAT) of $160.5 million, up 84.5% (FY20 $87 million); and
• Fully-franked final dividend of 14 cents per share, up from 4 cents per share.

ASX shares reporting next week

Today could be described as a gradual easing into the new week for ASX reporting. However, tomorrow will be bear witness to far more ASX-listed shares releasing their financial metrics.

Some of the big-name companies set to release their financials tomorrow include Kogan.com Ltd (ASX: KGN), SEEK Limited (ASX: SEK), Boral Ltd (ASX: BLD), Oil Search Limited (ASX: OSH), HUB24 Ltd (ASX: HUB), and Viva Energy Group Ltd (ASX: VEA).

To see the full line-up check out our ASX Reporting Season Calendar.

The post The ASX reporting wrap-up: Charter Hall, Ampol, NIB Holdings appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, NIB plummets, Sonic drops
• Why Charter Hall, IGO, Vulcan, & Z Energy shares are storming higher
• Charter Hall (ASX:CHC) share price surges 6% on $477 million FY21 profit
• NIB (ASX:NHF) dividend up 70%, shares sink regardless
• Which ASX companies are the top movers in the ASX 300 today?

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 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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Are you wanting some dividend shares to boost your income portfolio? If you are, then you may want to look at the ones listed below.

Here’s why these ASX dividend shares have been named as buys:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend share to look at is Aurizon. It is Australia’s largest rail freight operator, transporting more than 250 million tonnes of Australian commodities each year.

Given how reliant the Australian economy is on commodity exports, Aurizon’s network is hugely important and has strong (but regulated) pricing power.

It recently released its full year results and reported a 1% decline in revenue to $3.019 billion and a flat net profit after tax of $531 million.

While not the strongest result we’ve seen this month, it was in line with expectations.

In light of this, the team at Credit Suisse remain positive on the company. The broker has an outperform rating and $5.30 price target on its shares.

Credit Suisse is also expecting very generous dividends in the near term. It is forecasting dividends per share of 29.5 cents in FY 2022 and then 30.9 cents in FY 2023. Based on the latest Aurizon share price of $3.87, this will mean yields of 7.6% and 8%, respectively.

Scentre Group (ASX: SCG)

Another ASX dividend share to look at is Scentre. It owns and operates a portfolio of retail real estate assets valued at $50 billion and shopping centre ownership interests valued at $34.1 billion. This comprises 42 Westfield living centres.

After a tough period, things are starting to look a lot more positive, save for current lockdowns. This is due to very favourable Australian inflation expectations.

Goldman Sachs sees this as a big positive for Scentre due to it being far more positively leveraged to inflation than any other Australian real estate investment trust under coverage. In fact, Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.

The broker has a buy rating and $3.29 price target on the company’s shares. Furthermore, based on the latest Scentre share price of $2.55, Goldman is forecasting generous dividend yields of 5%+ over the next couple of years.

The post 2 ASX dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the heaviest trading ASX 200 shares this Thursday
• Which shares topped ASX 200 (ASX:XJO) trading volumes on Wednesday
• 2 high yield ASX dividend shares named as buys
• Why climate risks is a bigger threat to ASX 200 shares than you thought
• Brokers rate these ASX dividend shares as buys

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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon 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 S&P/ASX 200 Index (ASX: XJO) finished the day higher by 0.4% to 7,490 points.

Here are some of the highlights from the ASX:

NIB Holdings Limited (ASX: NHF)

The NIB share price fell around 11% after the private health insurance business reported its FY21 result.

It said that group underlying operating profit (UOP) went up 39.5% to $204.9 million. The group underlying revenue increased 2.9% to $2.6 billion, whilst the group claims expense went up 2.5% to $2 billion. The total group expenses fell 8.8% to $362.1 million.

Total net profit after tax surged 84.5% to $160.5 million – this included the benefit of $51.8 million of net investment income. Its return on invested capital (ROIC) was 19.1%, similar to the pre-pandemic levels.

The board declared a final dividend of 14 cents per share, up from 4 cents last year.

The ASX 200 share said that it expects market conditions for FY22 to remain similar to the past 12 months, with the pandemic having mixed consequences.

Management said the ongoing COVID-19 threat will further encourage private health insurance participation throughout Australia and New Zealand.

It’s expecting Australian resident health insurance net policyholder growth to be in the range of between 2% to 3% and for growth in its New Zealand business to be consistent with recent years.

NIB said that there will be less healthcare treatment of all kinds as long as lockdowns persist.

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price dropped around 3% today after releasing its FY21 report.

The ASX 200 healthcare business revealed that revenue increased by 28% to $8.8 billion, predominately thanks to the millions of COVID-19 PCR tests it’s doing around the world. Excluding the testing, FY21 global base revenue (excluding COVID testing) was up 6%.

COVID test volumes were lower in the FY21 second half compared to the first half, but are now increasing with the spread of the Delta variant.

Sonic’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 81% to $2.6 billion and the net profit rose 149% to $1.3 billion.

The board continue its progressive dividend policy with an 8% increase of the final dividend to 55 cents per share. That meant the total dividend was up 7% compared to FY20.

Sonic said that its balance sheet is set for growth by acquisition, with gearing at a record low level and $1.5 billion of liquidity currently available.

The ASX 200 healthcare company said its core business is increasingly resilient to pandemic waves and COVID PCR testing is expected to continue for the foreseeable future.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Plumbing product business RWC reported its FY21 result today.

It said that net sales increased by 15% to $1.34 billion. Net sales were up 25% on a constant currency basis.

The Americas recorded 27% constant currency growth. Asia Pacific saw constancy currency sales growth of 18% for the year, driven by “strong” Australian residential construction and remodelling activity. RWC noted that UK and European sales recovered strongly with 25% constant currency sales growth.

This helped reported EBITDA increase by 56% to $340.7 million and net profit after tax (NPAT) went up by 111% to $188.2 million.

The ASX 200 share’s board declared a final dividend of 7 cents per share. That brought the FY21 dividend to 13 cents per share, up from 7 cents per share last year.

In July 2021, the first month of FY22, it saw sales growth in all three regions, with reported net sales up 9% overall. These trends have “continued broadly” in August.

It said underlying demand remains strong, but sales are being constrained by ongoing supply chain disruption including raw materials availability, shipping delays and a shortage of labour in plumbing trades.

The post ASX 200 rises, NIB plummets, Sonic drops appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Monday
• NIB (ASX:NHF) dividend up 70%, shares sink regardless
• 2 ASX COVID-19 shares reporting big growth
• Which ASX companies are the top movers in the ASX 300 today?
• Why Ampol, NIB, Redbubble, & Sonic shares are dropping

Motley Fool contributor Tristan Harrison 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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended NIB Holdings Limited, Reliance Worldwide Corporation Limited, and Sonic Healthcare 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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As some of you likely know, my duties here at The Motley Fool include making media appearances.

Among other things, I appear nightly (Sunday to Thursday) on Nine’s Late News, and on Sunday mornings on Weekend Sunrise.

Yesterday morning, the segment was prompted by news that many Australians are looking to start investing for the first time.

“How can we help them get started?” was the general question.

Now, as much as my mother loves me, there’s only so much of me the rest of Australia wants to see on a Sunday morning, and I had three minutes to make my case.

Take out the intro, and the host’s questions, and my time was probably down to less than 100 seconds.

That’s not a whole lot of time to take a viewer from ‘not investing’ to ‘knowing enough to invest’.

So, I decided to strip right back.

To take a viewer — or, today I hope, a reader — from not investing to investing by the end of the week.

Now, I can’t ever give personal advice — I don’t know the specific circumstances, goals, objectives or risk tolerance of everyone who watches me, or reads what I write.

So, as ever, you need to consider how the suggestions that follow suit your needs.

But, here’s my 100-second answer to the question of ‘how can I get started’, that should give you a good leg-up.

And, while what follows is somewhat prescriptive, I also hope it’s helpful in dealing with what psychologists call the ‘paradox of choice’ — we have so many options available to us, our decision-making goes from ‘wow, it’s great to have some options’ to ‘there are so  many options, I’m paralysed by the challenge of trying to decide’.

Here, paraphrased, is how I suggested people can go from ‘zero’ to ‘invested’ in a week:

Monday: Choose a broker

I use CommSec. I reckon they’re a very good choice for the new investor because you know the brand, the website is very good, the brokerage isn’t too expensive, and the customer service is pretty good.

So,  go with CommSec. Open an account today. (alternative: if you already have a savings account with another bank, and they have a brokerage business, it might be easier to just open an account with your bank’s broker)

And when you do, make sure you also open an investment savings account so you can put your investment cash in there (and get your dividends paid into that account) to help you resist the urge to spend your investment proceeds!

Wednesday: Transfer some cash

Now your account is open, transfer your first lump sum. It assumes you have some cash saved up, of course, and it you don’t, this step might have to wait for a couple of paycheques first. But try to transfer at least something… it’ll create some momentum and get you moving toward your goal.

Bonus points: When you do, also make yourself set up an auto-transfer between your savings account and your investment account, so that every payday, you put some of that paycheque to work building your wealth.

Friday: Time to buy

The Motley Fool was founded on the basis that it’s possible to beat the market through carefully building a portfolio of well-chosen shares.

That remains true. And, in time, I think you should consider such an approach.

But this week, I don’t want to let the paradox of choice (or the avoidance of risk and uncertainty) stop you from getting started.

So if you’re following my one week plan, we’re going to kick off your portfolio building by splitting your investment cash in two, and putting one half into Australian shares and the other into international shares (but don’t worry — it’s easy, and you can do it all on the ASX).

So, I reckon you could get started by putting 50% of your cash into each of two exchange-traded funds: the Vanguard ASX 300 ETF (ASX: VAS) and the Vanguard MSCI Index International Shares ETF (ASX: VGS).

The former gives you exposure to the top 300 Australian companies. The second gives you part interest into the largest ~1,500 companies in the developed world (other than Australia).

In one fell swoop, you have both Australia and the rest of the developed world covered. 

(And these ETFs are super-broad — you’re now diversified across ~1,800 companies globally — and super low-cost. The fees are 0.1% and 0.18% per annum, respectively. Plus, Vanguard is a not-for-profit business, so you know they’ll be working hard to look after fundholders.)

And there you have it.

This morning you weren’t an investor.

By Friday (all going well), you’ll have made your first strides into the world of investing.

Then, next payday, more money will go into that account (you did set up your automatic deposit, didn’t you?). 

Then you can buy more shares.

Done over and over again — making saving and investing a habit — and despite market volatility and the occasional losing stock pick, I’m pretty sure you’ll be very happy with the results.

That is investing. And the power of investing.

And you can start, today.

(By the way, if you’re already investing, congratulations. Perhaps, like the mother who messaged me this morning — and sparked the idea for this article — you’re trying to help someone else get started. If you do, please forward them this email. You could just change their life.)

You can watch the segment, below:

Fool on!

The post Want to invest, but not sure where to start? appeared first on The Motley Fool Australia.

More reading

• From zero to investing in one week: THIS WEEK. Scott Phillips on Sunrise
• 2 excellent international ETFs for ASX investors this month
• Why these 2 top ETFs could be buys
• ASX investors can’t get enough! ETF inflows hit new record high
• VAS share price history: What caused the biggest ups and downs?

Motley Fool contributor Scott Phillips owns shares of Vanguard MSCI Index International Shares ETF. 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 Vanguard MSCI Index International Shares ETF. 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 Mach7 Technologies Ltd (ASX: M7T) share price ended Monday’s market session in negative territory. This comes after the healthcare imaging platform provider released its full-year results for the 2021 financial year.

At the closing bell, Mach7 shares finished down 3.52% to 96 cents.

Mach7 share price backtracks despite record sales orders

The Mach7 share price fell today following the company’s mixed result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Sales orders (total contract value) of $25.6 million, up 95% on the prior corresponding period (FY20 $13.14 million);
• Total revenue of $19 million, up 1% (FY20 $18.9 million);
• Earnings before interest, tax, depreciation and amortisation (EBITDA) loss of $1.8 million, down 155% (FY20 EBTIDA profit of $3.3 million); and
• Net loss after tax of $9.3 million, down 5,627% (FY20 $0.16 million).

What happened in FY21 for Mach7?

Mach7 delivered its most successful sales order increase on the back of 2 large contracts by premier hospital networks. They included Trinity Healthcare and Adventist Healthcare, realising a combined value of $13.2 million.

The sales order mix consisted of 20% Software-as-a-Service (SaaS) subscriptions, a significant improvement on the 3% in FY20. Mach7’s eUnity product, acquired in July 2020, predominately fuelled the growth.

The remaining sales orders were made up of capital sales (perpetual or term licenses) and services contracts (migrations). They represented 72% and 8%, respectively.

Mach7’s annual recurring revenue (ARR) soared by more than 80% to $10.9 million, accounting for now 57% of total revenue. Professional services revenue was stable at $2.2 million, with capital software license fee revenue decreasing by 42% to $6.0 million. The latter is due to a phased rollout which will see a solid order book for FY22.

At the EBITDA level, currency exchange losses mostly affected the result. Notwithstanding currency movements, EBITDA would have made a small loss of $0.7 million. This is attributed to incorporating Client Outlook in 202, and the delay of sales orders until FY22.

What’s next for Mach7 in FY22?

Looking ahead, Mach7 advised it remains on track to achieve revenue of $27 million for the current calendar year.

This is underpinned by the first-half recording revenues of $12 million, as well as the 50% current ARR run-rate of $13.4 million. In addition, the sales and service book valued at $8.3 million is expected to be recognised in the second half.

Mach7 stated that with these revenues, it will be generating a positive EBITDA.

The post Mach7 (ASX:M7T) share price slides on mixed FY21 result appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares to watch

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 MACH7 FPO. The Motley Fool Australia has recommended MACH7 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 S&P/ASX 200 Index (ASX: XJO) is having a decent start to this week’s trading today. At the time of writing, the ASX 200 is up 0.39% to 7,489.9 points. But let’s now dig a little deeper and see which ASX 200 shares are topping the charts in terms of trading volume.

The 3 most heavily traded ASX 200 shares on Monday

Fortescue Metals Group Limited (ASX: FMG)

Iron ore miner Fortescue is our first ASX 200 share to check out today, with a hefty 12.65 million Fortescue shares trading hands so far today. This appears to be a pure byproduct of what has happened with Fortescue share price today, seeing as there are no major news or announcement out of the company today.

This Monday has seen Fortescue lose a chunky 4.47% to $19.45 a share so far. This move is probably a response to the falling iron ore price, which has lost quite a bit of steam over the past week or two. The last time Fortescue was under $20 a share was way back in March.

South32 Ltd (ASX: S32)

Another ASX 200 miner in South32, this company makes the list today with a hefty 14.16 million shares traded so far today. Again, this appears to be the result of a decisive share price movement. South32 lost a bit of momentum last week when the diversified miner reported its FY21 earnings on Friday. At the time, South32 shares took quite a hit.

But investors seem to have taken a ‘new week, new me’ approach today. South32 has recovered strongly this Monday, and is currently up 2.34% to $2.84 a share. This is probably behind the large number of Soth232 shares trading on the market today.

Pilbara Minerals Ltd (ASX: PLS)

And our final, and most traded share (as well as our third miner) today is ASX 200 lithium producer Pilbara Minerals. Pilbara shares are up an incredible 10.6% so far today to $2.24 at the time of writing. This has prompted a whopping 28.72 million Pilbara shares to change hands so far this Monday.

It’s not entirely clear why this lithium company is rallying so convincingly, but my Fool colleague Kerry took a deeper dive into this remarkable bounce earlier today. However, it is pretty clear that it’s this huge share price jump that has triggered this fat trading volume.

The post These 3 ASX 200 shares were the most heavily traded on Monday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares on Monday
• Leading brokers name 3 ASX shares to buy today
• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday
• Which ASX companies are the top movers in the ASX 300 today?
• Just how dependent is Fortescue Metals (ASX:FMG) on China?

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. 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 Bitcoin (CRYPTO: BTC) price is up 2% over the past 24 hours. One Bitcoin is currently trading for US$50,268 (AU$69,816).

The last time the world’s largest token by market cap traded above the psychologically significant US$50,000 mark was on 15 May.

Back then, it was on the way down, having traded at all-time highs of US$64,829 on 16 April.

It would continue to lose ground (though not in any kind of straight line) until hitting lows of US$29,608 on 21 July. Which, our helpful calculator tells us, means Bitcoin has now gained a whopping 70% in just over 1 month.

Not bad for those who bought in at the 21 July low and were able to stomach the wild volatility that’s followed.

Commenting on the break above US$50,000, Mati Greenspan, CEO of Quantum Economics said (as quoted by CoinDesk), “It’s not the first time we’ve crossed this legendary milestone, but given the advancements in the industry lately, $50,000 certainly seems justified at this time.”

But with US$50,000 once more surpassed, what’s next?

Potential Bitcoin price catalyst ahead

Online investment platform eToro’s crypto analyst Josh Gilbert told the Motley Fool that he believes the world’s number 1 crypto “will be trading at a higher price” in 6-12 months than it is today.

Part of his bullish outlook stems from blockchain upgrades which are intended to make Bitcoin a competitor with Ethereum (CRYPTO: ETH) in the digital contract space.

According to Gilbert:

Bitcoin’s Taproot upgrade, which is expected to take full effect in October 2021, could provide a catalyst for new record highs. The upgrade will provide greater efficiency and, crucially, unlock the potential for smart contracts, meaning it can offer more than just payments.

Currently, smart contracts are the primary driver for Ethereum. Adding smart contracts capabilities to Bitcoin’s blockchain could be a game-changer.

Don’t ignore the headwinds

That’s a strong potential tailwind for further price gains.

When we asked what could stall any new bull run for the token, Gilbert told us:

Bitcoin’s headwinds are continuing scrutiny by regulatory bodies, as well as facing uncertainty from large mining regions such as China. Other assets like Ethereum continue to challenge Bitcoin, particularly with Ethereum’s more advanced technology.

Gilbert said Ethereum’s “transition towards decentralisation with Ethereum 2.0, which will accommodate the most complex ecosystem of applications” isn’t something Bitcoin is currently able to offer.

The post Bitcoin rockets past US$50,000 as analysts eye October price catalyst appeared first on The Motley Fool Australia.

More reading

• Up 50% in a month! Bitcoin is back over US$50,000
• 1 smart way to invest in Dogecoin without buying cryptocurrency
• ASX 200 Weekly Wrap: Miners drag ASX back to earth
• Cardano reaches new milestone as market cap narrows with Bitcoin
• Crypto assets surpass US$2 trillion on Bitcoin rally… now what?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin. 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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