Category: Stock Market

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) (Soul Patts) released its FY21 report yesterday. There were a few different highlights for investors to be aware of. The Soul Patts share price rose almost 6% on Thursday after the released numbers.

Looking at the headline profit numbers, regular net profit after tax (NPAT) increased by 93% to $328 million. This was driven by Brickworks Limited (ASX: BKW), Round Oak and New Hope Corporation Limited (ASX: NHC).

However, the statutory NPAT fell 71% because the $1 billion one-off gain on changing how it accounts for its TPG Telecom Ltd (ASX: TPG) holding was not repeated.

Here are some of the three main highlights from the result:

Dividend growth continues

Soul Patts is the only company in the ASX All Ordinaries Index to have increased its dividend every year since 2000. ‘

The total dividend for FY21 was $0.62 per share, an increase of 3.3% on FY20.

Soul Patts pays for its dividend from its net cash from investments. That includes things like dividends, distributions, interest and profit from its privately-owned businesses.

FY21 net cash from investments decreased by 29% over the year to $180 million. The FY20 cash from operations included $92 million from TPG as a pre-merger dividend. But, the FY21 cash generation was 6% higher than FY19.

The total dividends paid in FY21 represents 82% of net cash flows from its investments. That leaves the 18% in the business for re-investment back into more opportunities.

Investing strategy

As part of the result, Soul Patts re-iterated its investment philosophy, but it also revealed where management are currently looking for opportunities.

It wants the portfolio to be diversified, with a range of uncorrelated investments across listed shares, private equity and venture capital, property, structured credit and cash.

Soul Patts notes that it’s unconstrained. A flexible mandate allows the company to invest in and support companies from an early stage and grow with them over the long-term.

The investment style is long-term, with a disciplined and value-focused approach to investing through market cycles to deliver returns over the long-term.

It also wants its portfolio to offer capital protection. Management believe the investment conglomerate has a portfolio of assets that generate reliable cash through market cycles which aims to protect against the downside in market corrections.

With the merger with Milton Corporation Limited (ASX: MLT) nearly complete, Soul Patts is looking at few different key investment themes including health and ageing, energy transition, agriculture, financial services and education. It invested a further $60 million in agriculture in FY21.

New chief investment officer

Milton’s CEO and managing director Brendan O’Dea will become Soul Patts’ chief investment officer.

He spent over 22 years in Citigroup’s equities division, including as a managing director, across a broad range of roles including trading, investing and business/risk management in Sydney, Hong Kong, New York and Tokyo. Some roles included being the chief operating officer of pan-Asian equities, head of Japanese equities and head of US equity proprietary investments.

This may be interesting and perhaps signals Soul Patts’ greater intent on finding global equities to add to its portfolio for long-term growth.

At the moment, the limited international exposure that Soul Patts has includes Pengana International Equities Ltd (ASX: PIA) and Apex Healthcare. Apex is a “leading healthcare group with operations in Singapore, Malaysia, Vietnam and Myanmar.” Pengana International Equities is a listed investment company (LIC) that invests in global shares.

The post 3 highlights from the Soul Patts (ASX:SOL) FY21 report appeared first on The Motley Fool Australia.

More reading

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• 2 top quality ASX dividend shares offering reliable income growth
• The Soul Patts (ASX:SOL) share price is down 3% on Friday
• ASX 200 (ASX:XJO) midday update: Telstra unveils T25 strategy, Wesfarmers’ API offer
• These were the best performing ASX 200 (ASX:XJO) shares last week

Motley Fool contributor Tristan Harrison owns shares of Pengana International Equities Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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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Fortunately for income investors, there are a large number of dividend shares to choose from on the Australian share market.

To help narrow down your options, I have picked out a couple that a leading broker is very positive on. They are as follows:

Adairs Ltd (ASX: ADH)

Adairs is a leading retailer of homewares and home furnishings in Australia and New Zealand through both retail stores and online channels. This includes via the eponymous Adairs brand and also the online-only Mocka brand.

The team at Morgans are positive on the company. They currently have an add rating and $4.20 price target on the company’s shares. The broker is also forecasting some generous fully franked dividends in the near term. The broker expects dividends per share of 22 cents in FY 2022 and then 27 cents in FY 2023.

Based on the current Adairs share price, this will mean yields of 5.4% and 6.6%, respectively.

Morgans commented: “ADH has a strong BS [balance sheet], loyal customer base and various growth options. There is of course a question mark over whether elevated GMs are sustainable long term, like most retailers. However, at this valuation, we see enough safety in the numbers.”

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

This banking giant could be another dividend share for income investors to consider right now.

A note out of Morgans reveals that ANZ is the broker’s favourite big four bank, partly for valuation reasons. It has an add rating and $34.50 price target on the company’s shares.

Morgans has also forecast fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. Which, based on the current ANZ share price, will mean yields of 5.3% and 6%, respectively.

The broker explained: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years – particularly its institutional loan book – such that the quality of its loan book has improved. While ANZ’s Australian home loan book has been growing below system over recent months, we expect a disciplined margin performance from ANZ.”

The post Broker names 2 high yield ASX dividend shares to buy 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 ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS 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 Audinate Group Ltd (ASX: AD8) share price is currently rated as a buy by the broker UBS.

What does Audinate do?

This is an ASX tech share that provides an offering called Dante, which is audio over IP networking. The company claims it’s a worldwide leader and is used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries.

It replaces traditional analogue cables by transmitting synchronised audio signals across large distances to multiple locations at once, using just an ethernet cable.

Why does UBS rate the Audinate share price as a buy?

The broker rates Audinate as a buy with a price target of $11.75. That suggests that Audinate shares could rise by almost 20% over the next 12 months if analysts at UBS are right.

An important part of the potential growth story for UBS is the fact that Audinate is now offering video as well, to complement the audio service.

To enable the video offering, it recruited a team in Cambridge (in the UK) to accelerate its product rollout. Six new OEM (original equipment manufacturer) Date video products have been launched. New software video products are expected in FY22.

One of the company’s objectives for FY21 was to expand its training offerings to include Dante video and a wider range of languages. The ASX share said that 12,000 people have been trained on Dante video. There have been 59 non-English webinars and more than 13,000 non-English speaking professionals trained. There has also been a 47% increase in non-English speakers in the ‘contact’ database.

Audinate also revealed that it’s exploring acquisition opportunities for the potential to supplement the Cambridge team to increase and improve the video business.

The combined Dante video and audio combined offering has seen a “good number” of design wins, with a growing pipeline, but COVID has been a headwind.

FY21 result profit numbers

The Audinate share price is currently up around 15% since first giving investors an insight into its expected FY21 growth numbers in July.

In the FY21 report, Audinate said that it grew revenue by 22.5% to US$25 million, with gross profit growing 23.1% to US$19.2 million.

Looking at operating profit, the earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 50.1% to A$3 million. The net loss after tax improved by 17% to a loss of A$3.4 million. Operating cashflow was a positive A$6.7 million, up from A$4.8 million.

Outlook for growth and the Audinate share price

Investors often like to consider the upcoming year when thinking about a valuation for Audinate shares (or any business).

In FY22 the ASX share is expecting to drive further design wins for Dante video and next generation software products, launch more products, improve non-English speaking adoption, increase cyber protection and implement business scalability initiatives.

The Audinate co-founder and CEO Aidan Williams said:

The strong demand for our technology as the AV industry recovers from COVID is particularly encouraging for Audinate’s longer-term outlook. In the short-term, we expect continued supply chain uncertainty throughout the remainder of the 2021 calendar year and whilst this may limit revenue growth in the near term, we remain confident that Audinate can deliver US dollar revenue growth in the historical range for FY22. The launch of Dante video products, record numbers of design wins and the establishment of an engineering team in Cambridge, UK are significant milestones as we execute our strategy to revolutionise the AV industry.

The post Why the Audinate (ASX:AD8) share price is rated as a buy appeared first on The Motley Fool Australia.

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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 AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form and charged notably higher. The benchmark index rose 1% to 7,370.2 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% higher this morning. This follows a very strong night on Wall Street, which saw the Dow Jones jump 1.5%, the S&P 500 rise 1.2%, and the Nasdaq storm 1%.

Premier Investments rated as a sell

The Premier Investments Limited (ASX: PMV) share price could be overvalued according to analysts at Goldman Sachs. The retail conglomerate’s results fell short of Goldman’s estimates for sales, earnings, and dividends. In addition to this, the broker has concerns over its valuation. The broker has a sell rating and $23.40 price target on its shares.

Oil prices jump

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) will be on watch after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.4% to US$73.21 a barrel and the Brent crude oil price is up 1.35% to US$77.21 a barrel. Traders were buying oil after growing fuel demand and a draw in U.S. crude inventories led to tight supplies.

Dividends being paid

A number of popular shares will be paying their latest dividends today. Among the shares paying dividends are Blackmores Limited (ASX: BKL), IRESS Ltd (ASX: IRE), QBE Insurance Group Ltd (ASX: QBE), Perpetual Limited (ASX: PPT), and Woodside Petroleum Limited (ASX: WPL).

Gold price sinks

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a difficult day after the gold price dropped. According to CNBC, the spot gold price is down 1.8% to US$1,746.50 an ounce. Concerns that the US Fed could increase rates sooner than expected is weighing on gold.

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

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Some ASX shares are known for being growth-focused whilst others are picked because of their dividend yields.

The combined return of dividends and the capital growth is called the total return. A few companies may be able to generate good returns on both fronts of dividends and growth.

These two ASX shares are ones that may be able to deliver:

Bapcor Ltd (ASX: BAP)

Bapcor is a leading car parts business that operates under a number of different brands and businesses including Burson, Autobarn, Autopro, Truckline and Midas.

Current conditions have helped drive profit higher. The lack of international travel has led to more vehicle holidays, increasing the demand for Bapcor products because of higher wear and tear on vehicles. There has also been a strong market for second hand cars, which may mean a higher demand for replacement products. Retail conditions were also strong in FY21.

The strong demand led to revenue growth of 20.4% to $1.76 billion, pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 28.8% to $279.5 million and pro forma net profit after tax (NPAT) went up 46.5% $130.1 million.

It added a net 31 new company locations throughout its network over FY21. Combined with the 25% investment in Tye Soon (which added 60 locations), it now has around 1,100 locations throughout Australia, New Zealand and Asia.

The ASX share is investing to drive the long-term success of the ASX share. The new distribution warehouse at Tullamarine in Victoria has been completed with retail having successfully transferred into the facility and a new distribution centre for Queensland has been approved. It’s also investing in its ‘digital transformation’, including its new Autobarn e-commerce platform and business to business platforms in Australia, Thailand and New Zealand.

Bapcor’s dividend was increased by 14.3% to 20 cents per share in FY21. That equates to a grossed-up dividend yield of 3.8%.

Brickworks Limited (ASX: BKW)

Brickworks is an ASX share that has a few different segments.

It has a variety of building products including bricks, paving, masonry, roofing, precast and so on in Australia. The company also has brickmaking operations in the US after making a few acquisitions.

Brickworks has a 50% market share of an industrial property trust alongside Goodman Group (ASX: GMG) which is steadily building an impressive portfolio of buildings like distribution centres.

Finally, Brickworks owns a large shareholding of the investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). Brickworks has owned these Soul Patts shares for decades.

Brickworks has maintained or increased its dividend every year since 1976.

The ASX share just reported its FY21 result, which included a final dividend of 40 cents per share, an increase of 3%. That brought the full year dividend to 59 cents per share, an increase of 3%.

In that FY21 result, whilst total revenue fell 6% to $890 million, underlying earnings before interest and tax (EBIT) increased 86% to $383 million and underlying net profit after tax (NPAT) jumped 95% to $285 million.

A key part of the profit growth came from the property trust value rising by another $184 million, helped by strong structural tailwinds. This included a $149 million of revaluation gains. After including debt, Brickworks’ share of the net assets was $911 million. The rapid growth in online shopping has increased the importance of well-located distribution hubs and “sophisticated supply chain solutions”.

The ASX share says that it’s in a strong position, with conservative gearing and a diversified portfolio of attractive assets.

At the current Brickworks share price, it has a grossed-up dividend yield of 3.4%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company 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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If you’re on the lookout for buy and hold options, then the three ASX shares listed below could be worth a closer look.

All three shares have long runways for growth over the next decade, which could make them good candidates for long term investments.

Here’s what you need to know about them:

Altium Limited (ASX: ALU)

Altium is the printed circuit board (PCB) design software provider behind the Altium Designer and cloud-based Altium 365 platform. The company also has a number of complementary businesses such as the NEXUS workflow solution and the Octopart search engine. Over the last few years, Altium has carved out a leading position in this growing market. It is now aiming to dominate it. Management expects this to lead to the doubling of its revenue between now and FY 2026.

Kogan.com Ltd (ASX: KGN)

Kogan is Australia’s leading ecommerce company. While FY 2021 was a very disappointing year due to inventory issues, lessons have been learned and it is now time to look to the future. And that future appears very positive for Kogan. This is due to the company’s strong market position, growing private label offering, recent acquisitions, and the structural shift to online shopping.

PointsBet Holdings Ltd (ASX: PBH)

PointsBet is a sports betting company that has been growing at a rapid rate over the last couple of years thanks to the increasing popularity of mobile sports betting and its US expansion. For example, in FY 2021, the company delivered a 228% increase in turnover to $3,781.4 million. This was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321. The good news is that it still has a massive market opportunity in the US to grow into over the next decade.

The post 3 fantastic ASX shares for buy and hold investors 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 Altium, Kogan.com ltd, and Pointsbet Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Altium and Kogan.com ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 Santana Minerals Ltd (ASX: SMI) share price ended the day at a 4 month high following strong drilling results.

At Thursday’s closing bell, Santana finished up 40.91% to 15.5 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) settled 1.15% higher to 7,681.3 points.

What were the results?

In its latest release to the ASX, Santana reported significant assay results from the 100% owned Bendigo-Ophir Project.

The company has been conducting its drilling program since November 2020 at four Rise and Shine Shear Zone (RSSZ) deposits. It hopes to upgrade the mine’s category to Inferred Gold Resources. This states that the mineral content can be estimated with a low level of confidence.

Santana’s drill hole (MDD014) intersected 21.7 metres at 5.7 grams per tonne of gold from 174.3 metres at the northern extent of the Rise and Shine (RAS) deposit. This included:

• 5.7 metres at 11.19 grams per tonne of gold from 174.3 metres; and
• 4 metres at 12.60 grams per tonne of gold from 187.0 metres.

The drilling confirmed high-grade mineralisation, extending at least 100 metres further down from the previously reported high-grade mineralisation in MDD007.

Assays from drill holes MDD011, MDD012, MDD013 and MDD014 are still waiting to be received.

The company advised that diamond drilling is continuing northwards to further fast-track additional gold resources with a focus on down-plunge extensions.

Santana executive director, Dick Keevers commented on the positive results:

This high-grade gold intersection in diamond drill hole MDD014 at the top of the mineralisation over 21.7 meters of partial assays urgently completed, has demonstrated that high-grade gold zones are common at RAS, where further drilling in progress will determine their geological continuity.

Santana share price summary

Despite today’s massive gain, Santana shares have lost around 30% over the past 12 months. Although when looking at year-to-date, its shares are slightly better, just below 20%.

Santana commands a small market capitalisation of roughly $12.54 million and has approximately 114 million shares on its books.

The post Why the Santana (ASX:SMI) share price rocketed 40% today 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 Eastern Iron Limited (ASX: EFE) share price soared into the green during afternoon trade to finish the session at 4.7 cents.

That’s a 20.5% jump on the opening price and well ahead of the S&P/ASX 200 index (ASX: XJO) which climbed 1%.

Eastern Iron shares are on the move despite no market-sensitive news from the company today.

Let’s take a closer look at what’s up.

What’s pushing the Eastern Iron share price lately?

The Eastern Iron share price has been rising since the company announced a strategic placement and equity raising last week.

The placement of $1.05 million was made to Ya Hua International Investment and Development Co Ltd. As a result, it will become a substantial shareholder of Eastern Iron.

In addition to this placement, another tranche of $2.52 million will be placed to sophisticated and institutional investors, according to the release.

As such, Eastern Iron is seeking to raise an additional $3.57 million before costs. Funds raised from both offerings will provide the company with financing to expedite existing projects.

It also positions the company well to develop further lithium projects with Ya Hua and provides a financial commitment to the pair’s strategic relationship.

Investors have bought enthusiastically on the news and driven the Eastern Iron share price 51% higher over the week.

A bit more on Eastern Iron

Eastern Iron is in the iron ore exploration business. The company focus is developing resources at its flagship project, the Nowa Nowa Iron project in Victoria.

Eastern Iron was incorporated in 2007 and it was listed on the ASX in 2012 at 11.3 cents.

Even though it is an iron ore specialist, it appears to be making a pivot away from the now-struggling commodity.

The Eastern Iron share price took off on 6 September when the company announced another venture with Ya Hua to acquire and develop lithium projects.

The Eastern Iron share price has ballooned by 370% in just a month.

The post Eastern Iron (ASX:EFE) share price leaps 20% today and 50% in a week appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a good day for the TechnologyOne Ltd (ASX: TNE) share price on Thursday.

The enterprise software company’s shares ended the session over 2% higher at $11.87.

This latest gain means the TechnologyOne share price is now up over 40% in 2021.

Why did the TechnologyOne share price push higher today?

Investors were bidding the TechnologyOne share price higher today in response to the release of a positive broker note out of Bell Potter.

According to the note, the broker has retained its buy rating and lifted its price target on the company’s shares to by 8% to $13.50.

Based on the current TechnologyOne share price, this suggests there’s still 14% upside over the next 12 months.

What did the broker say?

The broker has updated its forecasts to reflect the recent acquisition of Scientia. While there are no changes to its FY 2021 estimates, it has upgraded its earnings estimates in FY 2022 and FY 2023 modestly.

Combined with market movements and time creep, this led to the increase in Bell Potter’s price target for the TechnologyOne share price.

Why is Bell Potter bullish?

The note reveals that Bell Potter is expecting a strong full year result from TechnologyOne in November.

It commented: “Technology One has a September year end so will report its FY21 result in late November. The full year result tends to be a catalyst for the share price – and we expect no different this year – as the second half result tends to be stronger both in terms of earnings and cash flow.”

“We forecast a result slightly above the middle of the guidance range but do not rule out a result closer to the top end given the good 1HFY21 result and positive outlook for 2HFY21. We also see the potential for strong SaaS ARR growth above the 35% target provided by the company at the 1HFY21 result,” it added.

Bell Potter has pencilled in a net profit after tax of $73.8 million for FY 2021, up 17.3% year on year.

Positively, it expects this strong form to continue and is forecasting further growth in the years that follow. Its analysts are expecting a net profit of $85.3 million in FY 2022 and then $99 million in FY 2023.

All in all, the broker appears to believe this and its positive longer term growth outlook makes the TechnologyOne share price good value at the current level.

The post Top broker sees 14% upside in the TechnologyOne (ASX:TNE) share price 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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Australia’s corporate watchdog has revealed that its enquiries prompted Mosaic Brands Ltd (ASX: MOZ) to provision an extra $2.7 million in its books for the 2021 financial year.

Investors apparently didn’t mind too much on Thursday, with Mosaic shares shooting up 8.4% to trade at 58 cents mid-afternoon.

The fashion retail conglomerate, which owns brands such as Katies, Millers, Rockmans, Noni B and Rivers, put aside $5.6 million in the 2020 financial year as a ‘lease make good’ provision.

A lease make good provision is money set aside to restore a rented property back to a certain condition at the end of the lease.

According to the Australian Securities and Investments Commission (ASIC), it raised concerns to Mosaic that the $5.6 million was not enough.

“The adequacy of provisions to meet obligations is important in providing useful and meaningful information to investors and other users of financial reports.”

$2.7 million added to Mosaic’s provisions

ASIC took credit for Mosaic increasing the provision to $8.3 million in the just-reported 2021 financial year results.

The Motley Fool has contacted Mosaic Brands for comment.

The commission reminded the market that the directors of a company were primarily responsible for the financial report.

“Companies must have appropriate processes, records and analysis to support information in the financial report,” stated ASIC.

“Companies should also apply appropriate experience and expertise, particularly in more difficult and complex areas of accounting policies and estimates.”

This is not the first time Mosaic Brands has been in trouble with the authorities this year.

In May, the company paid a $630,000 penalty after confessing to making misleading claims about its hand sanitiser and face mask products.

According to the Australian Competition and Consumer Commission (ACCC), those offences happened at the peak of the first wave of COVID-19 between March and June last year.

NoniB’s sanitiser claimed it contained 70% alcohol, Millers’ sanitiser claimed 75% and a third product sold online claimed it was “WHO-approved”. 

All of those claims were found to be false.

“Independent testing of the hand sanitisers commissioned by the ACCC found that one of the sanitisers tested contained an alcohol content of 17% and another had an alcohol content of 58%,” ACCC deputy chair Delia Rickard said at the time.

The post ASIC enquiry costs Mosaic Brands (ASX:MOZ) $2.7 million appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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