Category: Stock Market

The McMillan Shakespeare Limited (ASX: MMS) share price is falling after the financial products and services firm put out its half-year results today.

At the time of writing, the McMillan Shakespeare share price is trading at $12.68, down 2.46%. Let’s look at the company’s performance for the six months ended 31 December 2020 (1H21).

Key financial updates

McMillan Shakespeare reported an 8.4% loss in revenues for a 1H21 total of $247.6 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was up 19.1% from $57.2 million in 1H20 to $68.2 million in 1H21.

Net profit after taxes (NPAT) tumbled 25% to $25.5 million in 1H21 compared to $34 million in 1H20. Underlying net profit after taxes (UNPATA) was 13% higher totalling $42.7 million for 1H21.

The firm’s free cash flow pumped 23.4%, hitting $42.2 million for 1H21.

Basic earnings per share (EPS) was 42.1 cents per share, a notch up from the 1H20 EPS of 41.6 cents per share.

McMillan Shakespeare declared a fully franked dividend of 30.2 cents per share for the period.

Half-year insight and outlook

The company advised that it continued to manage “extremely challenging trading conditions” during 1H21 brought about by the coronavirus pandemic.

Such conditions included lockdown restrictions in Australia, New Zealand and the UK that negatively impacted sales activities.

The federal government’s JobKeeper program provided the company with $7.3 million (after tax) to retain staff during the COVID-19 economic downturn.

Looking ahead, McMillan Shakespeare expects improved conditions in the broader motor industry.

It advised that it expected COVID-19 would continue to impact operations, business and consumer activity. The company also said there was potential for further disruption.

McMillan Shakespeare predicted the business outlook for 2H21 performance to be similar to that of 1H21, excluding the JobKeeper payment.

McMillan Shakespeare share price snapshot

Despite the challenges, the McMillan Shakespeare share price has gained 8.06% over the past 12 months.

The company’s market capitalisation is $975.1 million, and there are presently 76.8 million shares outstanding.

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• McMillan (ASX:MMS) share price on watch today. Here’s why

Motley Fool contributor Gretchen Kennedy owns shares of McMillan Shakespeare Ltd. 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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In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At time of writing, the benchmark index is down 0.95% to 6,775.2 points.

Four ASX shares that have not let that hold them back are listed below. Here’s why they are zooming higher:

Bega Cheese Ltd (ASX: BGA)

The Bega share price has jumped 8% to $6.24. Investors have been buying the diversified food company’s shares following the release of a solid half year result. For the six months ended 31 December, the company reported a 5% decline in revenue but a 98% increase in normalised profit after tax to $29.7 million. This was driven by a more profitable sales mix and an increase in its margins compared to the prior corresponding period. The second half will be boosted by the Lion Dairy and Drinks acquisition, which completed on 25 January.

Blackmores Limited (ASX: BKL)

The Blackmores share price has zoomed 7% higher to $79.47. The catalyst for this was the health supplements company’s much improved performance during the first half. Blackmores reported a 3% increase in revenue of $302.6 million and an 8% increase in underlying net profit after tax to $19.4 million. This allowed the Blackmores Board to reinstate its dividend, declaring a fully franked interim dividend of 29 cents per share.

IDP Education Ltd (ASX: IEL)

The IDP Education share price has raced 9% higher to $27.09. This follows the release of a better than expected half year result this morning. The student placement and language testing company posted a 53% decline in half year earnings per share to 10.9 cents. However, this was a massive 156% ahead of Goldman Sachs’ estimates.

Sealink Travel Group Ltd (ASX: SLK)

The SeaLink share price is up an impressive 16% to $8.19. Investors have been fighting to buy the travel and transport company’s shares after it reported stellar first half revenue and profit growth. SeaLink reported record revenue of $570.8 million, up 329.5% on the prior corresponding period. This was driven largely by the transformational acquisition of the Transit Systems Group in January 2020. Underlying net profit after tax and before amortisation increased 231.9% to $48.1 million.

More reading

• ASX 200 down 0.45%: Woolworths rises, Blackmores jumps, Appen sinks
• Why the IDP Education (ASX:IEL) share price is rocketing 17% higher
• Why the Bega Cheese (ASX:BGA) share price just charged to a 52-week high
• Blackmores (ASX:BKL) share price charges higher after profit growth returns
• 5 things to watch on the ASX 200 on Wednesday

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 Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores 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 BlackEarth Minerals NL (ASX: BEM) share price is on the move today. This comes after the company announced progress in the definitive feasibility study (DFS) on its Maniry graphite project, located in Madagascar.

During early afternoon trade the graphite developer’s shares are up 6.6% to 16 cents. The BlackEarth share price reached as high as 17 cents after the news broke.

What did BlackEarth announce today?

The BlackEarth share price is racing higher as investors appear upbeat about the company’s prospects.

According to its release, BlackEarth advised it has commenced the second stage of a large pilot metallurgical test work program. Expected to run over the course of 3 months, the results of the program will be used in the DFS to finalise all processing engineering matters.

Under the test program, BlackEarth will use between 60 to 70 tonnes of Maniry graphite material. Once completed, the outcome will be applied to improve the Maniry flow sheet and provide final equipment specifications. In addition, the results are anticipated to deliver significant input into the project’s final environmental and social impact assessment (ESIA).

BlackEarth also noted that substantial graphite concentrate will be produced, which will support in closing off-take and downstream arrangements.

The pilot test work program is predicted to be completed some time in the second quarter of 2021.

Comments from the managing director

BlackEarth Minerals managing director Tom Revy touched on the company’s update, saying:

Over the past 12 months, BlackEarth has continued to progress the DFS and the Board is pleased with what has been accomplished to date. As part of this, the value of Stage 2 piloting cannot be under-estimated given the importance of the results to the Maniry development program and ultimately the potential value it can realise for shareholders.

About the BlackEarth share price

In the past 12 months, the BlackEarth share price has been a stellar performer, achieving gains of over 320%. The company’s shares traded for just 2.1 cents in March last year during the COVID-19 rout. Since then, strong investor sentiment within the industry coupled with company developments have led its wild share price rise.

Earlier this month, its shares reached a 52-week high of 28 cents on the back of signing an important marketing agreement.

More reading

• The Blackearth Minerals (ASX:BEM) share price is rocketing 150% today. Here’s why

Motley Fool contributor Aaron Teboneras 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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Carawine Resources Ltd (ASX: CWX) shares are flying today after the company released the first results from reverse circulation (RC) drilling at its Hercules prospect. During intraday trading, the Carawine share price surged more than 144% to 52.5 cents. However, Carawine shares have since retreated and, at the time of writing, are trading at 42.5 cents, up nearly 98% for the day so far.

Let’s have a look at what the exploration company reported to the market.  

What’s sending the Carawine share price skyward?

Earlier today, Carawine Resources announced that its drilling results reported multiple, high-grade intersections with mineralisation. According to the company, the results confirm Hercules as a significant gold discovery. Carawine noted that the results reported are from the first 11 of 12 RC holes drilled at the Hercules prospect. For those interested in the finer details, the highlights are as follows:

A combined interval of 37 metres at 5.58g/t gold from 84 metres was recovered across 3 lodes. These included:

• 4m @ 25.9g/t Au from 84m including 3m @ 34.2g/t Au
• 3m @ 22.2g/t Au from 101m, including 2m @ 33.0g/t Au
• 3m @ 10.6g/t Au from 118m, including 2m @ 15.6g/t Au

In addition, Carawine noted additional high-grade gold intersections, with extended mineralisation along the strike and depth. These included:

• 3m @ 15.2g/t Au from 125m including 2m @ 22.4g/t Au
• 3m @ 15.4g/t Au from 111m, including 2m @ 22.7g/t Au
• 5m @ 10.0g/t Au from 86m
• 5m @ 13.1g/t Au from 207m, including 3m @ 21.5g/t Au

The company’s management advised that the initial results showed great potential to become a major new high-grade gold deposit.

Carawine managing director Mr David Boyd said “These exceptional first results from our maiden drilling program at Tropicana North are highly significant”.

Company snapshot

Carawine is a gold and base metals explorer. The company has five projects: Jamieson, Paterson, Fraser Range, Tropicana North, and Oakover.

The Hercules prospect is located in the company’s Tropicana North Project in Western Australia. The Hercules gold prospect is a joint venture, with Carawine holding a 90% interest.

Prior to today’s gains, the Carawine share price was trading flat for the past year but is now sitting on gains of around 57%. The company’s update has sent investors into a frenzy, pushing the Carawine share price to a new, 52-week high. 

Based on the current share price, the junior miner has a market capitalisation of around $47 million.

More reading

• Here’s why the Aeris Resources (ASX:AIS) share price is rocketing 22%
• Mosaic Brands (ASX:MOZ) share price plummets 8%. Here’s why
• Here’s why the Australian Ethical (ASX:AEF) share price is crashing 10% lower
• The Healius (ASX:HLS) share price receives a boost
• Humm (ASX:HUM) share price plummets 15% despite rising profits

Motley Fool contributor Nikhil Gangaram 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 Aeris Resources Ltd (ASX: AIS) share price is rocketing, up 22% in early afternoon trading. At the time of writing, the Aeris share price has retreated slightly to 12 cents, up 20%. 

We take a look at the Aeris half year financial results (H1 FY21), released after market close yesterday, below.

How much did Aeris’ profit increase for the half year?

The Aeris share price is surging after the ASX copper-gold producer and explorer reported a 99% lift in revenue. This equates to revenue of $214.5 million, up from $108 million in H1 FY20.

Aeris notes that the half year results include those of the Cracow Gold Operations. This was acquired from Evolution Mining Ltd (ASX: EVN) on 1 July.

The company’s gross profit soared 1,205%, to $60.6 million. Additionally, Aeris’ net profit after tax (NPAT) of $45.9 million was up 260% year-on-year.

Cashflow from operating activities also surged, up 1,053% to $72.4 million. Aeris net debt decreased 70%, down to $10.9 million.

Diluted earning per share (EPS) were at 2.3 cents. This is down compared to a loss of 6.3 cents per share (cps) in the prior corresponding half.

Aeris has not historically paid a dividend and did not pay one for the half year.

Comments from Management

Regarding the half-year results, executive chairman, Andre Labuschagne said:

Since the start of July 2020 we have completed the acquisition of Cracow, discovered the Constellation deposit and significantly improved our balance sheet. The fundamentals for copper are looking extremely attractive and as we have seen over the last 6 months, gold is a good complimentary commodity to also be producing…

We were fortunate that the Tritton Copper Operations was not directly impacted during the various COVID shutdowns and we continued to operate during the year…

Fast forward to 2021 and Tritton and Cracow are both producing positive operating cashflows, providing a platform on which we can now focus on life extension projects at both operations.

Aeris Resources share price snapshot

Patient Aeris Resources shareholders have been well-rewarded over the past 12 months, with shares up 200% since 24 February 2020. By comparison, the All Ordinaries Index (ASX: XAO) is up a slender 0.1%.

With today’s intraday gains factored in, the Aeris share price is up 11% so far in 2021.

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Motley Fool contributor Bernd Struben 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 Mosaic Brands Ltd (ASX: MOZ) share price is sinking today after the company released its earnings report for the first half of the 2021 financial year (1H21).

After gradually lifting 1.02% to 99 cents a share through the morning, the Mosaic Brands share price took a sudden plunge at midday, dropping 8.6% to 90 cents at the time of writing.

Mosaic Brands (formerly known as Noni B) is the ASX retail company behind famous Aussie retailing brands like Noni B, Rivers, Beme, Millers and Autograph. The company has close to 1,400 stores around the country.

The company has had a rough trot over the past few years, falling from a high of around $3.70 a share back in late 2018 to less than a dollar today. Even so, Mosaic shares are up around 326% from the lows we saw back in March 2020.

What’s driving the Mosaic Brands share price today?

Mosaic announced a bit of a mixed bag today. The company reported that revenues came in at $299.1 million, down 29% from $414.1 million for the prior corresponding period (1H20). That was despite Mosaic’s online sales surging 27% year on year, rising from $41.1 million to $52.3 million. That represents a 17% share of overall revenues, rising from 10% in 1H20. Group margins also improved by 3% to 61%.

Despite that heavy drop in revenues, Mosaic reported an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 38%, going from $32.7 million in 1H20 to $45.1 million in 1H21. However (as the company noted), this growth in EBITDA was massively assisted by JobKeeper payments from the federal government over the period. Mosaic said ‘normalised EBITDA’, which assumes no COVID-19 lockdowns and no JobKeeper, would have been $17.32 million.

The company also reports that its net cash position has increased by 1,109% to $65.3 million from the $5.4 million of the prior corresponding period.

Mosaic will not be paying a dividend for the half, in order to “preserve cash”. The company has not paid a dividend since 2019.

Outlook for 2021 and beyond

Mosaic Brands CEO Scott Evans had this to say on the results:

The result was driven by a number of initiatives to reset the group for a post-COVID economy, including a continued focus on margin growth…

Whilst JobKeeper was an invaluable element in managing through the last 10 months, having now ended, Mosaic has transitioned through its toughest ever trading period, strengthened its balance sheet and returned to its track-record of profitability.

Given the unique demographic of our customers, we did not see, nor expect, a short term stimulus sugar hit to sales. However, conversely we are now planning for a longer-term sustainable lift in sales due to post-vaccine tailwinds as many of those same customers emerge from hibernation.

More reading

• Here’s why the Australian Ethical (ASX:AEF) share price is crashing 10% lower
• The Healius (ASX:HLS) share price receives a boost
• Humm (ASX:HUM) share price plummets 15% despite rising profits
• Regis Healthcare (ASX:REG) share price down despite paying a HY21 dividend
• What’s lifting the MoneyMe (ASX:MME) share price today?

Motley Fool contributor Sebastian Bowen 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 has been a disappointing day for the Australian Ethical Investment Limited (ASX: AEF) share price.

In afternoon trade, the fund manager’s shares are down a sizeable 10% to $6.45.

Why is the Australian Ethical share price tumbling lower?

The catalyst for the decline in the Australian Ethical share price on Wednesday has been the release of its half year results.

For the six months ended 31 December, the company reported a 10% increase in operating revenues to $25.6 million.

This was driven by its positive investment performance, strong growth in new customers, and record net inflows. This was partially offset by superannuation fee reductions and fee and threshold reductions across some managed funds.

The company’s operating expenses grew quicker than its revenue and were up 11% to $18.9 million. Management advised that this was due to its investment in its brand, distribution capabilities, operational platform, customer experience, and strategic initiatives and regulatory projects.

This ultimately led to Australian Ethical reporting an underlying profit after tax of $4.9 million for the half. This was up 11% on the prior corresponding period.

Thanks to this profit growth, the company’s board was able to declare a fully franked interim dividend of 3 cents per share. This is an increase of 20% on the previous year.

How does this compare to expectations?

Although its profit result was in line with its guidance range of $4.6 million to $5.1 million, judging by the Australian Ethical share price performance today, it appears as though investors were expecting an even stronger profit.

What else is weighing on the Australian Ethical share price?

In addition to this, management’s outlook for the remainder of FY 2021 could be weighing on the Australian Ethical share price.

Management advised that it expects higher operating expenses in the second half.

Australian Ethical’s CEO, John McMurdo, commented: “The second half of the financial year will be impacted by higher operating expenses, due to timing of expenditure, as well as increased investment in capability, strategic initiatives and regulatory projects as we continue to position our business for success.”

The chief executive also revealed that it would be lowering its fees.

“Looking forward, as part of our fee strategy, we will continue to reduce fees as we grow, to increase our competitiveness, and pass on benefits to our customers,” he added.

The company also confirmed that any performance fee on the Emerging Companies Fund will only crystallise on 30 June 2021. This is if the fund outperforms the Small Industrials Index benchmark. This fee is calculated at 20% of the outperformance.

Despite today’s decline, the Australian Ethical share price is still up a sizeable 31% in 2021.

More reading

• 2 quality ASX shares to buy for the long-term

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 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 Healius Ltd (ASX: HLS) share price received a boost in early trade after the company released its first-half report. At the time of writing, the Healius share price was up 4.10% to $4.06.

Healius share price gets a boost from results

Earlier today, Healius released strong results for the first half of FY21 ending 31 December 2020.

The company’s report was headlined by a 190% increase in net profit after tax (NPAT) of $75.6 million. For the half-year, Healius also reported a 230% increase in earnings before interest and tax (EBIT) of $136.6 million.

For the first 6 months of FY21, Healius generated $953.5 million in underlying revenue. The rebound in revenue marked a 16% increase compared to the $817.4 million generated in the first half of FY20.

Despite a rise in underlying net profits, Healius recorded a lower statutory net profit of $62.8 million. The company also highlighted the sale of its medical and dental centres late last year, with Healius banking $489.2 million.

Healius noted its strong capital position, with the company recording a 56.2% increase in operating cash flow of $251.2 million. In addition, the company declared a fully franked interim dividend of 6.5 cents per share, representing a 55% payout ratio.

Riding COVID-19 revenue wave

Despite the COVID-19 pandemic impacting certain divisions, Healius saw its pathology department perform strongly. For the half-year, the company saw revenue in its pathology division rise 22% to $711.4 million. Healius attributed the strong performance to robust COVID-19 testing volumes.

On the contrary, the company saw government-imposed lockdowns impact its imaging division. As a result, Healius reported a 39.1% decline in EBIT for its imaging department for the half-year.

Healius also noted a 21.5% increase in revenue from its day hospitals division. For the first half, the division reported revenue of $41.8 million and EBIT of $6.8 million.

Healius chief executive, Dr. Malcolm Parmenter, noted that:

The results delivered for 1H 2021 demonstrate the inherent strength of our simplified portfolio and value proposition centred on our specialist diagnostics businesses, while the performance of Day Hospitals validates our confidence in the medium and long-term prospects of this business.

The outlook for Healius

Management noted that Healius is well positioned for the second half of FY21, as non-COVID revenue streams recover across its divisions.

Given the fluid nature of the COVID-19 pandemic, the company’s management did not provide guidance for the full year.

At the time of writing, the Healius share price is trading more than 3% higher for the day.

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• These 2 ASX stocks jumped after a broker upgrade to “buy” today

Motley Fool contributor Nikhil Gangaram 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 Humm Group Ltd (ASX: HUM) share price is under pressure today after the release of the company’s latest half-year results (1H FY21).

The buy now, pay later (BNPL) company delivered a significant uplift in net profit for the first half of FY21 but investors have responded by sending the Humm share price down 15.91% to $1.11 at the time of writing.

Humm share price sinks despite robust performance 

Humm reported a 6.4% decrease in gross income to $225.2 million. The company indicated the fall is largely attributable to lower interest income in Australia Cards and reduced income from its discontinued consumer leasing portfolio. Similarly, gross profit was down 4.1% to $173.4 million for the same reasons. 

Despite the company completing a capital raise in 1H21, its earnings per share and return on equity metrics were all up as a result of strong growth in cash net profit after tax (NPAT), which was up 25.8% to $43.3 million. 

To add some perspective, Morgans is forecasting Afterpay Ltd (ASX: APT) to deliver an NPAT of $5 million and Zip Co Ltd (ASX: Z1P) to deliver an NPAT loss of $25 million this reporting season.

In the last 6 months, the company saw total customers increase 40% to 2.62 million and a significant uplift in total app downloads, increasing 89% to 540,000. This growth translated into a 14% increase in BNPL volume to $473 million, made up of a 293% increase in the number of transactions to 1.51 million. 

Strategy for growth 

The BNPL sector is a crowded space but Humm outlaid its plans to make the most of the rapidly growing industry. 

The company highlighted its focus on displacing the $30 billion SME credit market in Australia, via its new product, Hummpro. Hummpro groups purchases into monthly balances, providing businesses an extra month to repay. The app charges a flat monthly fee when used, and additional fees to further extend the repayment period. 

Humm is the only BNPL player in Ireland, and the company advised it is also gaining additional geographic exposure with planned launches into the United Kingdom and Canada in 2H21. 

The company’s current BNPL exposure in Australia, New Zealand and Ireland gives it an approximate market opportunity of $517 billion. By adding the UK and Canada into the mix, this market opportunity expands to almost $2 trillion.

More reading

• Humm (ASX:HUM) share price up on new BNPL for SMEs
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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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Regis Healthcare Ltd (ASX: REG) share price has fallen after reporting its FY21 half-year result.

Regis is one of the largest aged care providers in the country with more than 7,000 operational places.

What did Regis announce?

In the Regis FY21 half-year result it reported that its revenue from services rose 6.3% to $353.1 million.

The revenue included $6.8 million of one-off COVID-19 government funding, $0.9 million of a temporary uplift in the aged care funding instrument (ACFI) and $7.9 million from the acquisition of the business and assets of the Lower Burdekin Home for the Aged Society (LBHA).

The aged care business said that its average occupancy improved to 88.3%, up from 87.9% in the prior corresponding period. It achieved growth in its average available operational places to 7,170. The average occupancy rate improved with increased contributions from the WA ramp-up homes and the number of mature homes. The ending occupancy at 31 December 2020 was 89.7%.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 1.2% to $42.6 million and net profit after tax (NPAT) dropped 8.9% to $11 million.

The net profit included COVID-19 costs including staff expenses, protective equipment and other related costs of $9.7 million. It also included the profit on the sale of passive assets of $2.5 million.

Regis blames lack of funding

Regis managing director and CEO Dr Linda Mellors said:

Our half-year financial performance, in part, reflects management initiatives to preserve profitability in the face of an unsustainable residential aged care sector landscape.

Inadequate Commonwealth Government funding and prevailing uncertainty across the sector needs to be urgently addressed in order to ensure provider viability and build adequate capacity for the future. We look forward to the findings of the royal commission into aged care quality and safety including positive recommendations relating to the future financing and funding of the sector.

Balance sheet and growth plans

Net cash flows from operating activities for the half-year were $49 million, down from $74 million in the prior corresponding period. Net cashflows were impacted by COVID-19, particularly in Victoria.

The refundable accommodation deposits (RADs) and accommodation net cash inflow was $4.7 million – down from $46.6 million in the prior corresponding period. It managed to achieve positive inflows despite COVID-19 lockdowns that impacted community confidence in the sector and a number of Regis homes.

Regis said that the balance sheet was strengthened by the sale of a parcel of land at Palm Beach, Queensland, which was sold for approximately $21 million.

During the half-year, the company repaid $43 million of bank borrowers. Net debt at 31 December 2020 was $183.1 million, which represented a 35% reduction of net debt from $281.5 million last year.

The commencement of the greenfield development in Camberwell, Victoria, is planned for later in FY21.

Regarding the remaining developments in the pipeline, activities such as preparing land for commencement, development approvals, design documentation and arranging licences required are underway in readiness to commence construction once conditions are more favourable.

Regis Healthcare dividend

The board of Regis Healthcare has declared an interim dividend of 2 cents per share, which is franked to 50%.

Regis Healthcare share price

The Regis share price is down 18% over the past year, which includes the effects of COVID-19. However, it has actually risen more than 75% since the world learned of the effectiveness of the COVID-19 vaccines in November 2020.

Outlook

Regis Healthcare says that it continues to focus on business performance improvement relating to occupancy and earnings uplift strategy.

The royal commission report will be a significant impact on the industry, which is due to be released this week. It’s confident that the acquisition and development opportunities will arise after the royal commission and it said it’s well placed to take advantage of the opportunities.

Regis decided not to give any guidance because of the imminent release of the report.

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• Is the Harvey Norman (ASX:HVN) share price next to do a capital return cashback?

Motley Fool contributor Tristan Harrison 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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