Category: Stock Market

The Propel Funeral Partners Ltd (ASX: PFP) share price won’t be going anywhere on Monday after the company requested a trading halt this morning.

What’s the trading halt for?

The Propel Funeral share price is halted pending an announcement regarding an institutional placement and a follow-on share purchase plan.

The company advised that the trading halt will remain in place until Wednesday 20 October or when an announcement is made to the market in relation to the outcome of the placement.

According to the company’s FY21 results, it had $7.5 million of cash and $79 million of net debt as at 30 June 2021.

Growth via acquisitions

Propel Funeral has spent almost $150 million on acquisitions since its ASX debut in late 2017.

More recently, the company committed $15.4 million on three acquisitions to drive its presence in the South Australian and New Zealand markets.

According to its FY21 full-year results, the company said that it “remains focused on its core investment strategy to acquire assets and social infrastructure which operate in the death care industry in Australia and New Zealand”.

What’s next for Propel Funeral?

The Propel Funeral share price is sitting around all-time highs following resilient operating and financial performance so far in FY21-22.

The company recently provided a trading update for the first quarter of FY22, citing modest revenue growth of 13% against the prior corresponding period whilst performing a record number of funerals in the first quarter.

Despite COVID-19 impacts, management said that “hopefully extended lockdowns, strict funeral attendee limits and travel restrictions will soon be behind us, enabling bereaved client families to grieve in a manner that they ordinarily would, surrounded by family and friends.”

Encouragingly, Victoria announced last week the easing of restrictions from midnight, Thursday 21 October. This will allow 20 fully vaccinated people to attend indoor funerals and weddings or 50 outdoors.

Propel Funeral share price snapshot

The Propel Funeral share price is up 55% year-to-date, closing at record highs of $4.42 last Friday.

The post Propel Funeral (ASX:PFP) share price halted ahead of cap raise appeared first on The Motley Fool Australia.

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The Class Ltd (ASX: CL1) share price is rocketing higher on Monday morning. This move is amid the company entering a scheme arrangement to be acquired by HUB24 Ltd (ASX: HUB).

At the time of writing, the Class share price is trading 60.77% higher to $2.91. This puts the self-managed super fund (SMSF) administration solutions company’s shares at the highest level since early 2018.

Why is the Class share price rocketing higher today?

Investors are bidding up the Class share price on Monday morning following a takeover bid from HUB24. The offer from the $2.27 billion investment platform company represents a significant premium to its previous closing price on Friday afternoon.

According to the release, to acquire Class, HUB24 has offered 1 ordinary share for 11 ordinary Class shares. Additionally, the larger company will provide shareholders with 10 cents per ordinary share in cash to secure the acquisition. Shareholders can rest assured an interim dividend for FY22 of 2.5 cents per share has been declared on top of this payment.

Based on the closing price of HUB24 shares on 15 October, the consideration on offer implies a $3.11 Class share price. Similarly, the deal assigns a market capitalisation of $386 million to the SMSF solutions company.

The Class board has unanimously recommended shareholders vote in favour of the scheme. Unless the company receives a superior offer from another party. Furthermore, the board cited the potential for increased strength and technological innovation after merging with HUB24.

Management commentary

Commenting on the acquisition proposal, CEO and managing director Andrew Russell stated:

The combined strengths of Class and HUB24 will further accelerate the transformation of Class and provide exciting opportunities for future growth. We’re pleased Class will continue to run as a separate business unit within the HUB24 group so our team can continue to deliver on our strategy, whilst leveraging our deep technology expertise to deliver superior outcomes to both sets of customers.

From here, the deal will undergo 2 court hearings for reviewing the scheme booklet. If this progresses, the scheme is expected to be implemented mid to late February 2022.

Class in the past

Today’s jump breaks the downward trend that the Class share price had been experiencing over the last 12 months. Prior to today, the company’s shares had sunk approximately 16% over the last year.

Finally, the deal represents a 121% increase on the 52-week low recorded on the Class share price in May.

The post Class (ASX:CL1) share price explodes 60% on takeover news appeared first on The Motley Fool Australia.

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• HUB24 (ASX:HUB) share price rises amid acquisition announcement

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. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Class Limited. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price is edging lower during Monday morning trade. The retail conglomerate released an announcement regarding its off-market share buy-back.

At the time of writing, Woolworths shares are swapping hands for $40.11, down 0.15%. It’s worth noting that its shares are within sight of breaking their all-time high of $42.66 reached on 20 August.

Let’s take a closer look into what the company provided to the ASX.

Woolworths completes share buy back

In today’s statement, Woolworths advised it has successfully completed its $2 billion off-market share buy-back.

Management determined the final market price to come at $40.06 for each Woolworths share. This represents a 14% discount on the 5-day volume-weighted average price (VWAP) to the closing price on 15 October.

Eligible shareholders will receive $34.46 for each share, including a capital component of $4.31 and a dividend component of $30.15.

The transaction involves 58 million Woolworths shares or 4.6% of the entire issued capital.

Due to strong demand, the buy-back was scaled down by 81.2% to minimise disadvantaging shareholders with small holdings. For those who had 180 shares or less as a result, Woolworths noted it will buy back all of these shares.

However, for shareholders with more than 180 shares, the company will buy back 18.8% of the shares offered.

Woolworths group chief financial officer, Stephen Harrison said:

We are very pleased to have successfully completed the share buy-back, returning $2 billion of capital to shareholders, as foreshadowed at the time of the Endeavour Group demerger. Woolworths Group remains well-positioned to pursue our future growth aspirations, given the strength of the Group’s balance sheet.

Woolworths share price snapshot

It’s been a modest 12 months for Woolworths shares, increasing in value of around 15% over the period. The company’s share price has been relatively steady along the way, despite taking a dive during the “September effect”.

Woolworths commands a market capitalisation of about $51 billion and has 1.27 billion shares on its registry.

The post Woolworths (ASX:WOW) share price edges lower following share buy-back completion 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. 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 Senex Energy Ltd (ASX: SXY) share price has started the week with a bang.

In morning trade, the energy producer’s shares are up 16% to a multi-year high of $4.42.

This means the Senex share price is now up 75% since the start of the year.

Why is the Senex share price zooming higher?

The catalyst for the rise in the Senex share price on Monday has been news that the company is a takeover target.

This morning the company revealed that it is in discussions with Korean giant POSCO International Corporation in relation to a potential change of control transaction.

According to the release, on 2 September, POSCO submitted a revised non-binding and indicative proposal to acquire 100% of Senex for a cash offer price of $4.40 per share. This followed the submission of two prior non-binding proposals of $4.00 per share and $4.20 per share on 30 July and 27 August, respectively.

What’s the latest?

The Senex Board met and carefully considered the latest proposal and granted POSCO with a period of exclusivity to complete due diligence enquiries and further advance the proposal.

Following further discussions, Senex has agreed to extend POSCO’s exclusivity period out until 5 November. This is in order to provide POSCO with additional time to assess a further revised proposal at a price higher than $4.40 per share.

The release explains that POSCO has indicated that if a transaction proceeds, it is likely to be implemented by way of an off-market takeover offer. This would be subject to a 50.1% minimum acceptance condition and Foreign Investment Review Board approval.

Though, it has warned that there is no certainty that discussions between POSCO and Senex will result in a binding agreement. As such, Senex shareholders do not need to take any action at this time.

The Senex Board intends to update shareholders and the market in due course in accordance with its continuous disclosure obligations.

The post Senex (ASX:SXY) share price jumps 16% to multi-year high amid takeover talks 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. 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 Lark Distilling Co Ltd (ASX: LRK) share price is frozen this morning amid the company’s newly announced capital raise and acquisition.

The company halted trade of its shares this morning, before announcing that it has entered an agreement to acquire Kernke Family Shene Estate Pty Ltd, the owner of the Pontville Distillery and Estate.

Lark Distilling also updated the market on its accelerated export strategy and released its quarterly results this morning.

At the time of writing, the Lark Distilling share price is $5.06, having gained 4.55% on Friday.  

Let’s take a closer look at today’s news from the producer of whiskey, gin, and liquor.

Here’s why the Lark Distilling share price is frozen

The Lark Distilling share price is in the freezer on Monday as it announces its plans to raise approximately $58 million to fund a $40 million acquisition.

The company is acquiring an estate and distillery at Pontville, 30 minutes north of Hobart.

The estate includes 40 acres of land, a 130,000-litre distillery, cellar door, eight bond stores, a working cooperage, and historic stables and homestead.

Pontville will be Lark’s third working distillery in Tasmania, alongside its Cambridge and Bothwell sites. It will increase Lark’s production capacity by around 50% to 576,000 litres each year. Additionally, Lark now expects to have more than 2 million litres of whisky – valued at $435 million – under maturation by 30 June 2022.

Lark will start distilling at Pontville from February 2022. It will open its cellar door from that date.

Additionally, Lark expects to commission a new 1 million litre greenfield distillery on the Pontville site in 2023.

All whisky distilling, product innovation and development will continue to be led by Lark’s Master Distiller, Chris Thomson, and his team.

To pay for the acquisition, Lark is undertaking a $46.5 million institutional placement and a share purchase plan worth up to $5 million.

Further, the company’s directors plan to put $6.4 million towards the capital raise via a conditional placement. The conditional placement is subject to shareholder approval.

The placements will see 10.6 million new Lark Distilling shares offered for $5 apiece. That represents a 1.2% discount on Lark’s previous closing price and around 16.8% of its issued capital.

The share purchase plan will also see new shares in the company offered for $5 each.

Lark is also planning to export its products from 2023. It expects the global whiskey market to grow by 8% each year until 2025.

Commentary from management

Lark Distilling’s managing director, Geoff Bainbridge, commented on the news driving the company’s share price today, saying:

These assets provide significant whisky inventories on value accretive terms and re-balance the maturity profile of our overall whisky under maturation. Critically, the age profile and quality of the whisky under maturation being acquired will enable The House of Lark to commence an export programme from [financial year 2023] which is approximately 12 months ahead of previously published plans.

Quarterly results

Lark Distilling also released its results for the first quarter of financial year 2022 this morning.

Over the quarter just been, the Lark Distilling share price gained 50%.

Financially, the quarter also looks to have been strong despite COVID-19 impacts.

Lark Distilling brought in $4.1 million from sales over the 3 months ended 30 September. That’s 80% more than it did in the first quarter of financial year 2021.

However, it’s $451,000 less than it did in the fourth quarter of financial year 2021. The company attributed the dip in sales to COVID-19-related border closures.

The company expects its trade will continue to be impacted by COVID-19 until December when vaccination rates in Tasmania are forecast to reach 90%. As a result, Lark has pushed back the opening of its new whiskey bar, The Still, until then.

Additionally, the net sales value of the company’s Whisky Bank at Maturation was $267 million as of 30 September, up from $236 million as of the end of last quarter.

During the quarter, Lark Distilling was crowned a finalist for the IWSC Worldwide Whisky Producer of the Year 2021. The company’s Forty Spotted Gin also received multiple awards at the Spirits Business Gin Masters.

Lark Distilling share price snapshot

This year has been good to the Lark Distilling share price.

It has gained 251% since the start of 2021. It is also 274% higher than it was this time last year.

The post Lark Distilling (ASX:LRK) share price frozen amid acquisition and capital raise 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.

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It’s a bumper day for the MyDeal.com.au Ltd (ASX: MYD) share price after the company released a record first quarter update.

At the time of writing, the MyDeal share price is up 11.5% to 82.5 cents.

MyDeal share price jumps on record Q1 sales

The e-commerce business continued to make headway in the first quarter ended 30 September. Some key highlights include:

• Record gross sales of $68.5 million, up 49% quarter-on-quarter and up 22.6% on FY20
• Record active customers of 929,461, up 38.8%
• Returning customers driving transaction growth, accounting for nearly 60% of all transactions vs. 49.7% in Q1 FY21
• Positive operating cash flow of $5.5 million
• Cash balance of $47.2 million million as at 30 September with no debt

During the quarter, MyDeal commenced a brand refresh across all operating channels in a move to make “MyDeal famous and becoming the place where Australians start their shopping journey”.

This included an updated company logo, typography, colour palette, and tone of voice which forms its central “MyDeal feel” to embrace the positive emotion of shopping.

Phase one of the brand strategy rollout will include an extensive multi-channel brand campaign through various mediums including TV, radio, digital broadcast channels, out-of-home, and at sporting events.

Management commentary

MyDeal CEO Sean Senvirtne was pleased with the record quarter, despite “cycling a period of unprecedented growth”. Commenting on the company’s growth trajectory and strategic initiatives, he said:

Through relentless focus on our key strategic initiatives, doing it ‘right not rushed’ and executing to plan we have been able to grow faster than the industry average. Operating in a growing and underpenetrated online household goods market within Australia, MyDeal continues to acquire more market share and will continue to thrive in the years to come.

What’s next for MyDeal?

The MyDeal share price is down 32% year-to-date despite the company’s strong growth trajectory.

Looking ahead, Senvirtne said that “we are looking forward to what we predict will be a highly successful 2020 … as we position ourselves to capitalise on the increased demand for online shopping.”

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The Australian Ethical Investment Limited (ASX: AEF) share price has a new record high.

The positive price movement comes as the wealth management company announced an 8% increase in funds under management (FUM) to a record $6.54 billion.

At the time of writing, shares in the company are trading for $12.07 – up 1.26%. Earlier, shares hit an intraday (and all-time) high of $12.14. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.28% higher.

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

Why the Australian Ethical share price is in the spotlight

In a statement to the ASX, Australian Ethical says a record quarter of $160 million coming into the business has allowed it to meet this new record. It says this was mostly driven by higher value members rolling over their investments.

Investors are keen on these numbers, judging by the rising Australian Ethical share price.

In total, $1.96 billion are under managed funds, $380 million are institutional, and $4.21 billion is in superannuation funds under management.

The company says these key milestones “demonstrate positive momentum” regarding its growth strategy. It goes on to say particular metrics it is being given a vote of confidence in are “brand awareness, engagement with advisers, and enhancing the customer experience”.

Australian Ethical has over 70,000 funded customers – 60,000 through superannuation and about 10,000 managed fund investors.

Company profile

Australian Ethical Investments is an Australian wealth management company that invests according to its own strict ethical charter. It focuses on what it deems ethical sectors such as healthcare, IT, and education whilst avoiding industries such as gambling, tobacco, and fossil fuels.

The company was established in 1986 and regards itself as Australia’s leading ethical funds manager. It boasts an award-winning investment team that carefully evaluates prospective investments firstly under the company’s ethical charter and then using traditional risk/return investment analysis.

Australian Ethical share price snapshot

Over the past 12 months, the Australian Ethical share price has increased 160%. Year-to-date, shares in the company have appreciated 143%.

Its previous 52-week high was $11.97 and its 52-week low is $4.10.

Australian Ethical Investments has a market capitalisation of about $1.3 billion.

The post Australian Ethical (ASX:AEF) share price hits new high on record quarterly inflows 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. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The range-bound Zip Co Ltd (ASX: Z1P) share price is edging higher on Monday after the company released its highly anticipated first quarter update.

At the time of writing, the Zip share price is up 1.17% to $6.93.

Zip share price opens higher on record quarterly performance

Zip delivered yet another strong quarterly performance following a successful rebrand and continued international expansion. Highlights for the first quarter ended 30 September include:

• Record quarterly revenue of $136.8 million, up 89% year-on-year
• Record quarterly transaction volume of $1.9 billion, up 101%
• Record transaction numbers of 14.7 million, up 177%
• Customer base of 8.0 million, up 82%
• Merchants on the platform of ~55,200, up 71%

During the quarter, Zip successfully completed a global rebrand across 6 countries, in addition to the US changing from Quadpay to Zip.

US market paves way for growth

Despite the Zip share price trading at roughly the same levels as when it first acquired QuadPay back in June 2020, its US business continues to gather momentum, delivering triple-digit growth across the board.

Year-on-year revenue surged 182% to $67.1 million, transaction volumes jumped 204% to $955.4 million and transactions rose 165% to 5.3 million.

Zip was pleased to highlight that its brand awareness among under 45s is “almost at an all-time high” despite only recently commencing its brand campaign.

Looking ahead, the company pointed to growth initiatives such as its Microsoft Edge roll-out and launch of its physical card program.

Zip believes the US business is “very well placed to make the most of the seasonally strong Q2, beginning with Zip Fest in late October, the roll-out of Microsoft in November and the promotional shopping activity driven by Black Friday and Cyber Monday.”

ANZ market grows despite”challenging environment for retail”

Zip’s Australia and New Zealand operations delivered solid growth despite ongoing lockdowns.

Year-on-year revenues increased 42% to $64.5 million, transaction volumes rose 48% to $916.9 million and transactions jumped 179% to 9.2 million.

During the quarter, a number of new product features were launched including an improved Zip Money instalment offering, bill switching and affiliate funded offers, as well as cashback.

UK in its early days

Zip officially launched in the United Kingdom in December and has so far delivered an encouraging set of operating metrics.

UK revenues increased 17% quarter-on-quarter to $1.2 million while transaction volumes rose 50% to $21.4 million and transactions doubled to 200,000.

During the quarter, Zip UK launched its virtual card technology in the app, allowing customers to shop online and pay in 4 at any affiliate merchant.

What’s next for Zip?

The Zip share price has been relatively stagnant despite the company continuing to kick goals and expand on a global scale.

During the quarter, Zip announced its expansion into India through a strategic investment in ZestMoney. Zip previously said that India “has the potential to become one of the largest markets globally and by FY2026 is forecast to have US$300bn.”

Zip is now live in Mexico and “starting to build momentum”. The company said that its local sales and marketing team “continues to build a strong pipeline of enterprise merchants”.

Zip launched organically into Canada in Q4 FY21, leveraging cross border shopping through its large base of US merchants. The company said that its Canadian business “continues to grow”, recently opening up to the second largest region in the country, Quebec.

Finally, Zip revealed that its Middle East acquisition, Spotii, was completed today. Integration of the business into Zip was “well progressed”.

Zip share price in 2021

Its been a frustrating year for Zip shareholders, despite a positive 22.5% year-to-date performance.

The Zip share price has largely been range-bound since early May, trading around the low $7 level.

The post Zip (ASX:Z1P) share price edges higher after record quarterly update 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. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The HUB24 Ltd (ASX: HUB) share price is gaining as the market opens, after making an announcement this morning. Shares in the investment platform provider bounded out of the gate on Monday amid its proposal to acquire self-managed super fund (SMSF) administration software provider, Class Ltd (ASX: CL1).

In early morning trade, the HUB24 share price is up 1.36% to $33.51. Meanwhile, Class shares have exploded nearly 60% since the market opened.

Why is the HUB24 share price rising?

Shareholders of both HUB24 and Class will be following the market closely this morning. This follows HUB24 announcing it has entered a binding scheme implementation deed to acquire 100% of shares in Class through a scheme of arrangement.

According to the release, the companies have agreed upon a deal that entails the issue of 1 HUB24 ordinary share for 11 Class ordinary shares. In addition, HUB24 will provide 10 cents per Class ordinary share in cash to the company’s shareholders. In total, this represents a 71.6% premium to the SMSF software company’s previous closing share price.

The rationale behind the acquisition is to combine two complementary businesses, both strategically focused on delivering financial solutions. Furthermore, management foresees growth opportunities from increases in efficiency and product capability to new and existing customers. The potential for further growth is likely attracting attention to the HUB24 share price today.

Following the acquisition, Class will add over 7,700 unique customers to HUB24. These customers are spread across enterprises, administrators, accountants, auditors, advisers, and SMSF trustees. As a result, the combined company’s pro forma full-year revenue for FY21 would amount to $162.7 million.

It is expected the acquisition will provide 8% earnings per share (EPS) accretion in FY23. This excludes revenue synergies and one-off implementation costs. HUB24 noted anticipated cost synergies of circa $2 million per year. Meanwhile, FY22 is expected to involve $4 million to $5 million in transaction costs. Additionally, the company will likely shell out $6 million in implementation costs over FY22 and FY23.

Next steps

With the HUB24 share price in the news, a draft scheme booklet will be submitted to the Australian Securities and Investments Commission (ASIC) mid to late November 2021. From there, HUB24 expects to sit its first court hearing for the scheme in early to mid-December this year.

If everything goes to plan, the scheme will be implemented by mid to late February 2022.

Commenting on the acquisition proposal, HUB24 managing director Andrew Alcock stated:

We’re excited to be announcing the proposed acquisition of Class Limited with the full support of the boards of both companies. Class are market leaders in the establishment, management and administration of wealth and SMSF solutions. The completion of this transaction will combine two exceptionally talented teams with a common purpose to empower better financial futures for Australians and provide a unique range of products and services for financial professionals and their clients.

Finally, this news follows a recent flurry of positive updates from HUB24, sending its share price higher. Last week the investment platform company revealed record first-quarter funds under administration of $3 billion. Investors will be hoping this deal will build upon the company’s past success.

The post HUB24 (ASX:HUB) share price rises amid acquisition announcement 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. owns shares of and has recommended Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Class Limited. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Temple & Webster Group Ltd (ASX: TPW) share price has started the week strongly.

In morning trade, the online furniture and homewares retailer’s shares are up 4.5% to $14.03.

Why is the Temple & Webster share price racing higher?

The Temple & Webster share price is racing higher today following the release of its annual general meeting update.

That update reveals that the company has started FY 2022 positively, with its revenue growing strongly financial year to date.

According to the release, Temple & Webster’s revenue for the period July 1 to 15 October increased 56% over the prior corresponding period.

In addition, management advised that it continues to expect its full year earnings before interest, tax, depreciation and amortisation (EBITDA) margin to be in the 2% to 4% range in FY 2022. Though, it anticipates that first half EBITDA margin will be higher than this level.

The company’s CEO, Mark Coulter, commented: “We continue to experience strong tailwinds, including the ongoing adoption of online shopping due to structural and demographic shifts and an acceleration of these trends due to COVID-19. A buoyant housing market and a reduction in travel spend are also supporting the growth of our sector.”

“While the end of lockdowns will no doubt have the world return to a more “normal” distribution of discretionary spend, we would remind our shareholders that there is still significant growth ahead for Temple & Webster as we continue our march up the online adoption curve. Temple & Webster is a long-term growth story and periods of above and below average growth are to be expected,” he added.

What about its supply chain?

Also boosting the Temple & Webster share price today was management’s comments on the global supply chain challenges currently facing Australia.

The good news is that Temple & Webster is largely unaffected by this due to business model and the diversity of its supplier base.

Mr Coulter explained: “The inherent flexibility and diversity of Temple & Webster’s business model and supplier base is proving fruitful. We source from over 100 factories through our private label division and our drop ship suppliers are sourcing from thousands of factories, meaning we can adapt to the changing supply chain environment quickly.”

“Our inventory weeks of cover levels for our best sellers (both drop shippers and private label) are at a similar position or better than this time last year. While we will no doubt see individual products move in and out of stock, we expect to see customers substitute into other similar products as we witnessed last year,” he concluded.

The post Temple & Webster (ASX:TPW) share price races higher on AGM update 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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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