Day: August 29, 2022

RPMGlobal share price dips despite 20% revenue surge

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin, waiting in anticipation.

The RPMGlobal Holdings Ltd (ASX: RUL) finished the day 4.78% in the red at $1.495 following the release of its FY22 results.

Trading volume was more than 5x higher than the 4-week average today at 1.315 million shares, suggesting investors sold positions en masse during the session.

RPMGlobal grows revenue in all areas

Key takeouts from the company’s results include:

  • Revenue grew 20% year on year to $84.1 million
  • Advisory revenue saw a $9.1 million growth on FY21’s result
  • Software Consulting revenue increased by $1.3 million over the 12 months
  • Net operating revenue was stronger and grew 18% from the previous year
  • FY22 EBITDA of $4.5 million, down from FY21’s result of $5.5 million
  • Loss after tax of $4.1 million, down from a loss of $5.1 million the year prior

What else happened last period for RPMGlobal?

Growth was strong across all operating segments for the company in terms of revenue. Net operating revenue also grew 18% year on year.

This came down to a net loss after tax of $4.1 million, ahead of last year’s result of a $5.5 million loss.

The company also booked a $1.1 million loss from closure and one-off M&A costs associated with the conflict in Ukraine.

As at 30 June 2022, RPMGlobal also had $95.5 million in pre-contracted, non-cancellable software
subscription revenue.

This is up $29.8 million from the same time a year earlier from $65.7 million.

Management commentary

In his directors report to shareholders, RPMGlobal chairman, Stephen Baldwin said:

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 research and development spend by an additional $3.3 million to accelerate its transition towards being a “software as a service” company.

This investment continues to open new opportunities for the company, while enabling us to provide a more comprehensive service offering to our customers.

What’s next for RPMGlobal?

The company projects FY23 total revenue to be in the range of $101 million and EBITDA to be $14.2 million.

“For the fourth year in a row, RPM will set a new software sales record for the company,” RPMGlobal announced.

This is backed by a flattening of software expenditure in the coming 12 months. The company finalised:

With our transition from perpetual to subscription license sales completed, the operating leverage provided by the $95.5 million in precontracted software subscriptions will now start to flow through into the company’s financials.

RPMGlobal share price snapshot

Over the past 12 months, the RPMGlobal share price has fallen 22%.

The post RPMGlobal share price dips despite 20% revenue surge appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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3 ASX All Ords shares tumbling lower following full-year results

Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.

Monday was not the start to the week that investors were probably hoping for. By the time the closing bell belted out its chime, the S&P/ASX All Ords Index (ASX: XAO) had taken a 2% beating to the downside.

Not even the release of earnings reports could stir up excitement for many ASX shares. In fact, in some cases, it had the opposite effect. For some companies, the results weren’t sufficiently up to scratch to prevent shareholders from hitting the ‘sell’ button.

Here are three ASX All Ords shares that fell into the negative following their FY22 results today.

These ASX All Ords shares failed to impress

Impedimed Limited (ASX: IPD)

The market shaved 4.2% off the Impedimed share price on Monday to finish at 6.8 cents per share. It seems a 26% increase in revenue to $10.6 million in FY22 wasn’t enough to satisfy shareholders. The medical device company derived $9.9 million of its total revenue from its SOZO platform.

Notably, Impedimed now has involvement with 16 of the top 25 integrated delivery networks. However, the focus might have been on the company’s continuing cash burn.

In FY22, Impediment chewed through $15.7 million operationally. Although, $42.5 million was added to the balance sheet through the issuing of new shares.

Objective Corporation Limited (ASX: OCL)

Another ASX All Ords share to suffer at the hands of the market today was Objective Corporation. The software company revealed a solid result for the 12-month period, posting gains across all key financial metrics. Yet, the Objective share price was sold down 4.24% to $15.80 apiece.

The company put up a respectable 12% increase in revenue, reaching $106.5 million in FY22. Meanwhile, net profit after tax (NPAT) grew at an even faster pace, up 31% to $21 million. In addition, dividends lifted 22% to 11 cents per share.

Race Oncology Ltd (ASX: RAC)

Finally, Race Oncology makes up the red trifecta of ASX All Ords shares in this list. The $335 million oncology treatment developer failed to attract buyers on Monday despite remarkable top-line growth.

According to its results, Race notched up revenue by a staggering 186% compared to the prior year. In turn, the company generated $53.9 million of revenue from ordinary activities. However, this was paired with widening losses on the bottom line. Total losses expanded to $11.2 million for the 12-month period compared to $6.3 million in FY21.

The Race Oncology share price finished at $2.03, down 2.9% for the day.

The post 3 ASX All Ords shares tumbling lower following full-year results appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of August 4 2022

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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 positions in and has recommended Objective Corporation 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 Scott Phillips.

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The BrainChip share price has dumped 30% in a month. What’s happening?

a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.a woman wearing a close-sitting hat featuring wires and thick computer screen glasses clutches her computer monitor and looks shocked and disturbed as she reads old-fashioned computer text from the screen.

The BrainChip Holdings Ltd (ASX: BRN) share price closed the session down 6.38% on Monday on no news from the company.

Shares in the artificial intelligence technology developer finished at 88 cents each today.

Despite posting a nearly 530% increase in revenue in its H1 FY22 results last week, investors haven’t been keen to nibble at the company’s current share price.

In fact, as seen on the chart below, BrainChip has traded sideways for a good portion of 2022.

TradingView Chart

What’s up with the BrainChip share price?

Revenue for the six months to 30 June 2022 came in at A$7 million, up 529% year on year.

However, further down the balance sheet, it wasn’t so rosy. Operating losses were down just 1% to A$12.35 million whereas the company still printed a loss per share of 66 cents.

As reported by colleague Matthew Farley at the time, “[a]nother item that grew considerably [in H1 FY22] was its share-based payment expenses, swelling 128% to AU$5.27 million”.

The company attributed the rise to equity issued to directors and employees.

The recent drop for BrainChip has occurred in lockstep with a pullback in the S&P/ASX All Technology Index (ASX: XTX), down nearly 3% in the past month.

Zooming out, however, BrainChip shares remain buoyant, up 29% year to date and 81% higher over the past 12 months.

Also, when looking at the chart above, the downside for BrainChip is hardly out of sync with what the share has been displaying over the past eight or nine months.

Technology shares have caught a bid in recent months with more stable yields on government bonds, yet remain volatile.

With talks of a global recession resurfacing, what this means for the BrainChip share price looking ahead remains to be seen.

The post The BrainChip share price has dumped 30% in a month. What’s happening? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Brainchip Holdings Limited right now?

Before you consider Brainchip Holdings Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Brainchip Holdings Limited wasn’t one of them.

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Motley Fool contributor Zach Bristow 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 Scott Phillips.

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This ASX All Ords share flew higher on a 230% profit boost

Man pointing at a blue rising share price graph.Man pointing at a blue rising share price graph.

The Om Holdings Limited (ASX: OMH) share price lifted today amid a huge jump in profit.

The manganese and silicon smelting company’s share price lifted 7.46% to 72 cents. In contrast, the
All Ordinaries Index (ASX: XAO) dropped 2.07% today.

Let’s take a look at what this ASX All Ords share reported to the market.

Om Holdings net profit surges

Highlights of Om Holdings’ half-year results include:

What else did this ASX All Ords share report?

Om Holdings achieved a gross profit margin of 27.7% in the first half of 2022, up from 19% in H121.

The company’s revenue and gross profit margins were higher despite fewer products being sold compared to H121.

Underpinning the strong financial result was stronger prices for manganese ores, ferrosilicon and silicomanganese alloys.

The company also reduced its debt to equity ratio from 0.67 times at 31 December last year to 0.54 at 30 June.

The company’s OM Sarawak smelter is forecast to produce between 340,000 to 360,000 tonnes of ferroalloys by the end of the year.

Management commentary

Commenting on the results, CEO and executive chairman Low Ngee Tong said:

I would like to commend and thank all staff, especially our team on the ground in Sarawak, on delivering an outstanding set of results for the first 6-months of 2022.

Despite pandemic related workforce challenges and the fluid working environment in a year of furnace conversion and major maintenance, we have delivered operationally and the Group has been able to post very robust financial results.

Om Holdings share price snapshot

The Om Holdings share price has surged more than 15% in the past 12 months, but it has lost 20% year to date.

For perspective, the All Ordinaries Index has fallen 7.3% in the past year and 7.53% year to date.

Om Holdings has a market capitalisation of about $531.8 million based on the current share price.

The post This ASX All Ords share flew higher on a 230% profit boost appeared first on The Motley Fool Australia.

Should you invest $1,000 in Om Holdings Limited right now?

Before you consider Om Holdings Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Om Holdings Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of August 4 2022

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Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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