Category: Stock Market

The Bank of Queensland Limited (ASX: BOQ) share price has returned from its trading halt with a bang.

This afternoon the regional bank’s shares have raced 10% higher to a 52-week high of $9.25.

When the Bank of Queensland share price hit that level, it meant they were up a remarkable 57% in the space of six months.

Why is the Bank of Queensland share price racing higher?

Investors have been buying the bank’s shares today after it announced the successful completion of the institutional component of its capital raising.

According to the release, the bank raised a total of $673 million from institutional investors via an underwritten 1 for 3.34 accelerated pro rata non‐renounceable entitlement offer and placement.

These funds were raised at $7.35 per new share. This represents a discount of 12.6% to the Bank of Queensland share price at the close of play on Thursday last week.

Management advised that the institutional entitlement offer was strongly supported with a take‐up rate of ~98%. The placement also received significant demand.

Bank of Queensland will now push ahead with the retail component of its $1.35 billion capital raising.

Why is Bank of Queensland raising funds?

The proceeds from the capital raising with be used to complete the transformative acquisition of ME Bank.

Bank of Queensland’s Managing Director and CEO, George Frazis, commented: “We are very pleased with the strong support we have received from our institutional shareholders and other investors as we take this unique opportunity to create a leading customer‐centric alternative to the big banks.”

“We believe that this transformational merger creates a compelling proposition with significant scale benefits through the alignment of operating models and our technology roadmaps.”

“We are pleased that investors recognise the compelling strategic and financial proposition of this transaction and we are excited to work hard to deliver better outcomes for our customers, employees, the community and our shareholders,” he concluded.

Is the Bank of Queensland share price good value?

Despite hitting a 52-week high today, a couple of brokers still believe the Bank of Queensland share price can go higher.

Analysts at Goldman Sachs have a buy rating and $9.63 price target on its shares. Whereas analysts at Credit Suisse have an outperform rating and $9.50 price target.

More reading

• ASX 200 flat: SEEK CEO exits, Afterpay sold off, BOQ surges higher
• Why Bank of Queensland, MNF, Oil Search, & Starpharma are charging higher
• Goldman Sachs upgraded these ASX 200 shares after outstanding results 
• ASX 200 drops 0.2%, Costa soars, BOQ is buying ME Bank
• Bank of Queensland (ASX:BOQ) to raise $1.35bn to acquire ME Bank

Motley Fool contributor James Mickleboro 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.

The post Why the Bank of Queensland (ASX:BOQ) share price is up 10% to a 52-week high appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37DYZXU

The Austal Limited (ASX: ASB) share price sank to a two-year low this morning after its US boss was walked the plank.

The Austal share price slumped 19% to $2 at the time of writing – making it the worst performer on the S&P/ASX 200 Index (Index:^AXJO).

The second worst performer is the Perenti Global Ltd (ASX: PRN) share price with its 11% fall from grace and Afterpay Ltd (ASX: APT) share price losing around 8%.

Mismanagement allegations sink Austal’s share price

Nothing sinks a ship faster than governance concerns! Investors jumped ship following Austal’s update on investigations by US authorities.

These investigations relate to Austal’s Littoral Combat Ship (LCS) program before July 2016. Its being undertaken by the US Department of Justice and the Securities Exchange Commission. The Australian Securities and Investments Commission (ASIC) is also looking into the matter.

No captain at the helm

The good news is that Austal believes any breach is relatively minor and has been corrected. But this didn’t save the company’s US president Craig Perciavalle, who resigned after Austal commissioned its own investigation.

Austal USA Chief Financial Officer, Rusty Murdaugh will take over in the interim until a permanent replacement is found.

What the investigation is all about

There’s a lot riding on this. The US operations are the most significant part of Austal’s business and the market does not like uncertainty.

The investigations centre around the write back of work in progress (WIP) that was announced to the ASX on 4 July 2016 relating to the LCS program.

Austal’s commissioned investigation found that the quantum of write back was appropriate given Austal’s revenue and profit following the revision that was made to the estimated cost to complete the remaining LCS vessels.

A few small leaks

But the devil’s in the details. Shareholders would be spooked to learn that Austal underestimated the construction costs of the LCS vessels. The blowout is driven by costs related to US Naval vessel Rules and mandatory shock standards.

This doesn’t speak well of Austal’s management skills although management believes it “materially complied with its reporting requirements with the US Navy”.

Austal also identified isolated instances of misallocation of labour hours between vessels in the early stages of the program.

Further, it didn’t install valves that meet the US Navy’s specification, although the US Navy has since accepted these valves.

The bigger worry for the Austal share price

While Austal’s transgressions could be far worse, US authorities can still penalise the company and that decision is yet to be made.

The bigger fear is that the US Navy will sideline Austal in future tenders, although management tried to reassure investors that it still has a close relationship with its largest client.

Investors are yet to be reassured.

More reading

• Why Afterpay, Austal, Perenti, & SEEK shares are tumbling lower
• Why the Alumina (ASX:AWC) share price is dropping today
• What does Citi think about ASX reporting season so far? 
• Here’s why the Perenti (ASX:PRN) share price is down 12% today
• ASX 200 flat: SEEK CEO exits, Afterpay sold off, BOQ surges higher

Brendon Lau owns shares of Austal Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Austal (ASX:ASB) share price got torpedoed today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bunFDF

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is charging higher. At the time of writing, the benchmark index is up 0.55% to 6,818.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down a sizeable 8% to $136.89. Investors have been selling Afterpay and other tech shares today following a very poor night of trade on Wall Street’s technology-focused Nasdaq index. So much so, at the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is down 4.4%. In addition to this, investors may be nervous ahead of Aftetpay’s half year results tomorrow.

Austal Limited (ASX: ASB)

The Austal share price is down 9% to $2.25. Investors have been selling the shipbuilder’s shares after it revealed that investigations are being conducted by US regulatory authorities. According to the release, these investigations are looking into historical matters concerning Austal’s Littoral Combat Ship (LCS) program.

Perenti Global Ltd (ASX: PRN)

The Perenti share price has crashed 12% lower to $1.25. This has been driven by the release of the mining services company’s half year results this morning. Perenti posted a 4.8% increase in revenue to $1,056.2 million but a 25.8% reduction in underlying net profit to $44.6 million.

SEEK Limited (ASX: SEK)

The SEEK share price has tumbled 8% lower to $27.79. This is despite the job listings giant upgrading its full year earnings guidance this morning. Today’s decline appears to have been driven by weakness in the tech sector and news that its founder and CEO, Andrew Bassat, is stepping down. Mr Bassat will be replaced by former Commonwealth Bank of Australia (ASX: CBA) boss, Ian Narev, on 1 July. Mr Narev is currently SEEK’s COO. The company also announced plans to sell down its stake in the China-based Zhaopin business.

More reading

• What does Citi think about ASX reporting season so far? 
• Here’s why the Perenti (ASX:PRN) share price is down 12% today
• ASX 200 flat: SEEK CEO exits, Afterpay sold off, BOQ surges higher
• Seek (ASX:SEK) shares sink as founder steps down
• SEEK (ASX:SEK) share price tumbles despite guidance upgrade

James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why Afterpay, Austal, Perenti, & SEEK shares are tumbling lower appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2NuqGM9

Polynovo Ltd (ASX: PNV) shares are swinging around today after the company released its earnings report for the first half of the 2021 financial year (1H21) before market open this morning. At the time of writing, the Polynovo share price has risen 0.83% to $2.43 after climbing as high as $2.47 earlier in the day.

What did Polynovo report this morning?

Polynovo is an ASX health care company that specialises in treatments for burn injuries and other skin maladies.

The Polynovo share price is staying afloat today after the biotech reported that revenues for 1H21 came in at $12.8 million, up 25.3% over the $10.2 million from the prior corresponding period (1H20). Gross margins for product sales rose 3.9% as well.

However, that was offset by expenses increasing 32.6% from $11.2 million in 1H20 to $13 million in 1H21. A large component of this increase came from increased staff headcount.

That rise in expenses helped push earnings before interest, tax, depreciation and amortisation (EBITDA) to a loss of $2.9 million, up 46.2% from the previous loss of $1 million. Earnings before interest and tax (EBIT) losses also rose 41%, going from a loss of $2.4 million in 1H20 to a loss of $3.3 million in 1H21.

That resulted in Polynovo delivering a net profit after tax loss of $3.54 million, up 46.3% from the $2.42 million loss of 1H20.

Overall, the company posted an underlying loss of $0.87 million for 1H21, down 40.2% from its loss of $1.45 million in 1H20. No dividend was announced, in case you were wondering.

Polynovo has blamed the coronavirus pandemic on “lumpy” revenues for the period, citing “reduced access and reduced elective surgery in all regions”.

Even so, the company has pointed to a 31.2% rise in sales of its flagship NovoSorb product as a bright spot over the period. It also highlighted the fact it managed to sign 22 additional customers in the United States, which brings the total new accounts opened for the 2020 calendar year to 109. That’s an 89% rise over the 2019 calendar year.

About the Polynovo share price

Although the Polynovo share price is having a decent day today, the company has had a rough start to the year. Polynovo shares remain down 37.15% year to date, and down more than 14% over the past 12 months. In saying that, Polynovo shares are still up more than 1,170% since August 2017.

On the current Poynovo share price, the company has a market capitalisation of around $1.61 billion.

More reading

• How do Avita Medical (ASX:AVH) shares stack up against Polynovo and Aroa Biosurgery?
• A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME)
• The Aroa (ASX:ARX) share price has surged 60% since its IPO
• Why the PolyNovo (ASX:PNV) share price is pushing higher
• The Polynovo (ASX:PNV) share price is already down 30% in 2021

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO 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.

The post Polynovo (ASX:PNV) share price rises despite widening losses appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3kip8Rh

The Sky Network Television Limited (ASX: SKT) share price is trading lower today after the company announced its half-yearly report.

At the time of writing, its shares are down by 5.88% at 16 cents.

What’s driving the Sky Network share price today?

In today’s release, the company reported revenue for the first half of FY21 at $356.9 million. This was 7% lower than the prior corresponding period (pcp). 

Management put that down to the impact of the COVID-19 pandemic, despite Sky Network experiencing strong growth in streaming revenue and the gradual recovery in advertising. 

Despite the slide in revenue, the company increased its earnings before interest, tax, depreciation and amortisation (EBITDA). EBITDA rose 30% from $89.7 to $116 million.

Furthermore, net profit after tax was up 234%, climbing to $39.6 million. The company said permanent cost savings from various initiatives contributed to the strong EBITDA and NPAT results.

This was also reflected in the company’s operating expenses, which fell to $242.8 million, 18% lower than the pcp. Notably, the company managed to cut $18 million in permanent savings.

Moreover, Sky Network has grown cash balances on hand to $123m following its capital raise last year. Along with undrawn debt facilities, this enables it to repay the $100m of bonds that mature in March 2021 and provides significant headroom going forward.

Management comments

Sky Network chair Philip Bowman welcomed the report, saying:

We are encouraged with the solid results achieved in the first half. Sky has a unique role to play as the content aggregator which can deliver to all of New Zealand, and [chief executive] Sophie Moloney and her team have a clear focus to maintain performance in the coming months and years.

Outlook 

Looking ahead, the company said it would continue to focus on revenue stabilisation. Sky Network expects organic growth in Neon and Sky Sport Now. With an ongoing recovery in advertising and commercial revenues during the remainder of FY21.

The company also stated it would undertake additional investment in the second half of FY21, primarily for its Sky broadband service ahead of projected revenue growth.

Sky Network also reaffirmed its guidance for FY21 with revenue from $695 to $715 million. EBITDA will increase to between $170 and $182.5 million.

More reading

• Why the Sky Network (ASX:SKT) share price will be on watch today

Motley Fool contributor Daniel Ewing 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.

The post The Sky Network (ASX:SKT) share price has slipped 5% today. Here’s why appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3kcplWa

The AUB Group Ltd (ASX: AUB) share price is rocketing today, up nearly 8% in early afternoon trading.

We look at the specialist insurance provider’s financial results for the half-year ending 31 December (H1 FY21) below.

What financial results did AUB Group report for H1 FY21?

The AUB Group share price is leaping higher following this morning’s ASX release, where the company reported an improvement on all its core financial results compared to H1 FY20.

Underlying net profit after tax (underlying NPAT) came in at $30.7million. This is an increase of 44.2% on the $21.3 million reported in the prior corresponding period (pcp).

Reported NPAT of $24 million represented a 44.5% gain on the $16.6 million in the corresponding half. AUB credited both organic and acquisition-driven growth in its Australian Broking division for much of the gains.

Underlying earnings per share (EPS) increased by 43.2% year-on-year to 41.47 cents per share.

AUB Group will pay a 16.0 cent per share (cps) dividend, fully franked, up 10.3% from the 14.5 cps in the prior corresponding period.

Words from the CEO

Commenting on the results, AUB Group CEO, Michael Emmett, said:

1H21 Was an important period for the group during which we were able to demonstrate the benefit of our investment in BizCover, grow broking revenue and improve broking profits across our existing network, agree the sale of Altius to finalise our exit from Health and Rehabilitation Services, strongly progress the implementation of our two key technology platforms, make further strategic investments including in 360 Underwriting and Experien and to continue our strategy to consolidate and scale existing businesses.

These strategic initiatives leave us poised for strong, continued growth in the second half and in FY22, enabling us to upgrade our full year profit guidance.

AUB Group stated it will remain focused on its growth ambitions. The company upgraded its full 2021 financial year underlying NPAT guidance to $63–65 million.

AUB Group share price snapshot

Longer-term shareholders of AUB Group will have nothing to complain about, with shares up 43% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up a whisker thin 0.1% in that same time.

Year-to-date the AUB Group share price is up 15%.

More reading

• Why I’d buy dividend shares in 2021 for growth and passive income
• Why the Alumina (ASX:AWC) share price is dropping today
• Motley Fool CIO Scott Phillips talks to Sky News: Crown’s woes continue, a dividend ‘supercycle’, and falling energy prices
• Here’s why the Credit Intelligence (ASX:CI1) share price is soaring 15%
• What does Citi think about ASX reporting season so far? 

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.

The post Why is the AUB Group (ASX:AUB) share price rocketing 8% today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Mgvqo7

Buying dividend shares has been a popular means of generating a passive income for many years. They provide a relatively high yield, as well as dividend growth potential.

However, their appeal could increase significantly over the next few years. A lack of income opportunities elsewhere may mean that demand for dividend shares rises rapidly. This may push their prices higher, and provide investors with capital growth.

As such, now could be the right time to build a diverse portfolio of income shares. Their total return prospects over the long run seem to be very attractive.

The passive income appeal of dividend shares

From a passive income perspective, dividend shares could be more attractive than ever. Despite the recent stock market rally, it is possible to buy a wide range of dividend stocks that can provide a high, and growing, passive income over the long run.

While this situation may be no different than in the past, what has changed over recent years is the difficulty in generating an income from other mainstream assets. Low interest rates mean that cash savings accounts offer sub-inflation returns in some cases. Meanwhile, rising bond prices prompted by lower interest rates mean that yields on many investment grade bonds have been squeezed.

As such, from an income perspective, dividend shares offer a significantly higher return than other income-producing assets. This may mean that many investors have little option but to use dividend stocks to provide them with a worthwhile passive income in 2021, and potentially in the coming years.

Capital growth opportunities from dividend shares

A rise in demand for dividend shares could push their prices higher. As ever, the performance of any stock is based on supply and demand among investors. Should there be a consistent period of buying among today’s high-yielding shares, they could deliver attractive capital returns.

The result of this may be a potent mix of a high passive income and market-beating capital appreciation. As such, dividend shares could have a broader appeal than they have done in the past, with investors focused on capital returns potentially purchasing them. Their appeal is further enhanced because of the high valuations present among many growth stocks after the recent market rally. In comparison, dividend shares may offer wide margins of safety that translate into high returns.

Managing risk within an income portfolio

Despite their return potential, dividend shares are not without their risks. As with any company, they could experience further disruption from coronavirus. Meanwhile, an uncertain economic environment may create tough operating conditions for many businesses that ultimately lead to lower levels of sales growth and profitability.

Therefore, it remains important to diversify among income shares in 2021. Doing so could reduce overall risks, and allow for a broader range of opportunities to deliver impressive total returns in the long run.

More reading

• Why is the AUB Group (ASX:AUB) share price rocketing 8% today?
• Why the Alumina (ASX:AWC) share price is dropping today
• Motley Fool CIO Scott Phillips talks to Sky News: Crown’s woes continue, a dividend ‘supercycle’, and falling energy prices
• Here’s why the Credit Intelligence (ASX:CI1) share price is soaring 15%
• What does Citi think about ASX reporting season so far? 

Motley Fool contributor Peter Stephens 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.

The post Why I’d buy dividend shares in 2021 for growth and passive income appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3khnI9U

The S&P/ASX 200 Index (ASX: XJO) is having a pretty flat day today. The ASX’s flagship index is currently (at the time of writing) sitting at 6,809 points, a 0.43% rise on yesterday’s close. Alumina Limited (ASX: AWC) shares aren’t so fortunate though. The Alumina share price is currently down 3.85% to $1.625.

It seems investors weren’t too impressed with the 2020 full-year earnings report the aluminium/alumina producer released to the markets this morning.

What did the company report?

The Alumina share price is sliding lower today after the company reported a mixed bag of metrics this morning.

Alumina operates a joint venture with the American company Alcoa Corp called Alcoa World Alumina and Chemicals (AWAC). For the full year, AWAC reported earnings before interest, tax, depreciation and amortisation (EBITDA) of US$896 million, down from the US$1.26 billion the company posted in 2019. Net profits after tax came in at US$402 million, down from 2019’s US$565 million. That dented cash flow from operations, which was US$673 million for the year, down from 2019’s US$906 million.

All of this was despite AWAC increasing alumina production in 2020 from 12.6 million tonnes in 2019 to 12.8 million tonnes in 2020. AWAC expects to produce a similar level of alumina in 2021, guiding for 12.8 million tonnes. The company managed to reduce costs too, which fell from US$210 per tonne in 2019 to US$199 per tonne in 2020.

That was not enough to offset a falling alumina price though. AWAC managed to achieve a realised price for alumina of US$336 per tonne in 2019, but only US$268 per tonne in 2020.

Meanwhile, AWAC’s aluminium production fell slightly in 2020 to 160,000 tonnes, down from 2019’s 161,000 tonnes.

Turning now to Alumina’s results outside AWAC, and the company’s net profits after tax came in at US$146.6 million, down 31% from 2019’s US$214 million.

Alumina has announced a final dividend of 2.9 US cents per share, fully franked. That’s up slightly from the company’s last interim dividend of 2.8 US cents per share, but down from the previous final dividend of 3.6 US cents per share. Based on the Alumina share price and current exchange rates, that would give the company’s shares an annualised yield of roughly 4.42%.

About the Alumina share price

The Alumina share price has trodden a bumpy road over the last few years. The company was asking more than $3 per share back in October 2018 when record-high commodity prices pushed its earnings (and dividends) through the roof. But on today’s prices, Alumina shares are down almost 50% from those highs. Even so, the Alumina share price is up more than 20% since October 2020. On the current share price, the company has a market capitalisation of around $4.76 billion.

More reading

• ASX 200 flat: SEEK CEO exits, Afterpay sold off, BOQ surges higher
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops 0.2%, Costa soars, BOQ is buying ME Bank
• 2 of the best ASX 200 blue chip shares to buy
• The QBE (ASX:QBE) share price jumps to 2021 high on broker upgrades

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.

The post Why the Alumina (ASX:AWC) share price is dropping today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uipITT

Scott Phillips joined Peter Stefanovic for Sky News First Edition this morning to provide his take on the latest financial news.

Below, he chats with Peter about the Victorian and Western Australian inquiries into Crown Resorts, plus the resumption of dividends and the impact of lower energy prices.

https://fast.wistia.com/embed/medias/j8w5zzgedn.jsonphttps://fast.wistia.com/assets/external/E-v1.js

More reading

• The Aquis Entertainment (ASX:AQS) share price is now up 1,000% in a week
• 5 things to watch on the ASX 200 on Tuesday
• Crown (ASX:CWN) share price on watch on VIC royal commission
• Crown Resorts (ASX:CWN) share price rises despite earnings hit
• Why investors are watching the Crown (ASX: CWN) share price

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Motley Fool CIO Scott Phillips talks to Sky News: Crown’s woes continue, a dividend ‘supercycle’, and falling energy prices appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3umOYZ2

The Credit Intelligence Ltd (ASX: CI1) share price is off to the races today, up 12% in late morning trade. Earlier, the share price had been up as much as 60%.

We take a look at the company’s buy-now-pay-later (BNPL) announcement that’s driving investor interest.

What did Credit Intelligence report on its BNPL offering?

The Credit Intelligence share price is blasting higher following this morning’s ASX release reporting the commencement of lending by YOZO Pay.

The YOZO Pay service is targeted at small to medium enterprise (SME). The service offers a BNPL product that Credit Intelligence says will give its customers greater flexibility and transparency. Importantly, it uses an artificial intelligence (AI) system which was developed in collaboration with UTS Sydney. Consequently, YOZO Pay can assist SMEs in overcoming cashflow challenges.

Credit Intelligence, a debt restructuring and personal insolvency management services company, highlights the following benefits of the AI-enhanced YOZO Pay:

• Minimal human interaction is required
• Flexible repayment instalments
• Pay for what you use
• Same day loan approval
• Automatic borrower limit changes
• No property required for collateral

Credit Intelligence is still working with UTS on additional developments of its AI engine. Looking ahead, the company hopes to offer new features including 24/7 loan approvals and the ability to assist SMEs around the clock.

Comments from Management

Regarding the BNPL rollout, Jimmie Wong, Executive Chairman of Credit Intelligence said:

We are excited to have commenced lending via the YOZO Pay BNPL service for SMEs. This is a truly unique offering and is set to revolutionise lending for small and medium enterprise by providing a product which is not only aligned with the operations and cashflow of the business, but is also faster, cheaper and more transparent for the SME owner to use – allowing them more time to focus on the day-to-day running of their business. This SME BNPL service is totally different from other personal BNPL products being offered in Australia right now.

Credit Intelligence share price snapshot

Over the past 6 months, the Credit Intelligence share price didn’t do much. That is, right up until 12 February when the share price took off like a rocket.

Since 12 February, Credit Intelligence shares are up 183%. That’s the same share price gain posted for 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 1% year-to-date.

More reading

• Yowza! The Credit Intelligence (ASX:CI1) share price is up 130% in 2 months

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.

The post Here’s why the Credit Intelligence (ASX:CI1) share price is soaring 15% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pMuGol