Category: Stock Market

Building a passive income portfolio isn’t about chasing the highest dividend yield.

If anything, that’s one of the easiest ways to get into trouble.

What I’d focus on instead is building something that can grow, adapt, and keep paying me for decades. The goal is reliability first, income second, and growth quietly working in the background.

Here’s how I’d approach it.

Start with a foundation of quality

The core of any income portfolio, in my view, has to be high-quality businesses.

These are companies with strong balance sheets, consistent earnings, and the ability to grow dividends over time. They might not always offer the highest yield today, but they tend to be far more dependable.

For me, that includes names like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), and Wesfarmers Ltd (ASX: WES).

They operate in essential parts of the economy, have pricing power, and long track records of paying dividends.

What I like about this group is that they provide a base level of income that I can feel relatively confident about, even when markets are volatile.

Add infrastructure for stability

If I wanted to make the portfolio more resilient, I’d layer in infrastructure-style businesses.

These are companies that own critical assets and often generate predictable, inflation-linked cash flows.

Transurban Group (ASX: TCL) is a good example, with toll roads that benefit from long-term concessions and population growth. Telstra Group Ltd (ASX: TLS) also fits here, with recurring revenue from its telecommunications network.

These types of businesses can help smooth out income, particularly during periods when more cyclical companies might struggle.

Include income with growth potential

A mistake I think many investors make is focusing only on today’s yield.

I’d want a portion of the portfolio in companies that might offer slightly lower yields now, but have the potential to grow their dividends over time.

That could include businesses like REA Group Ltd (ASX: REA) or even TechnologyOne Ltd (ASX: TNE), where earnings growth has historically supported rising payouts.

Over time, these can become some of the biggest contributors to income, even if they don’t look like traditional income stocks at first glance.

Use ETFs to tie it all together

Even with a strong selection of shares, I’d still want diversification.

That’s where exchange-traded funds (ETFs) come in.

A fund like Vanguard Australian Shares High Yield ETF (ASX: VHY) can provide exposure to a broad basket of dividend-paying companies, helping to reduce reliance on any single stock.

I also like the idea of including something like Vanguard Diversified High Growth Index ETF (ASX: VDHG). While it’s not purely income-focused, it brings global diversification and long-term growth, which can support future income.

For me, ETFs are less about maximising yield and more about strengthening the overall portfolio.

Keep some exposure to resources

I think miners have a place in an income portfolio.

Companies like BHP Group Ltd (ASX: BHP) can generate significant cash flow during strong commodity cycles and return a large portion of that to shareholders.

The trade-off is that dividends can be volatile.

That’s why I’d treat this part of the portfolio as a bonus rather than something to rely on for consistent income.

Foolish takeaway

If I were building a passive income portfolio on the ASX, I wouldn’t chase the highest dividend yield or try to find shortcuts.

I’d focus on quality businesses, add stability through infrastructure, include some growth, and use ETFs to diversify.

By doing so, I think it would put you in a strong position to build a resilient, long-term income portfolio.

The post How I’d build a world-class ASX passive income portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Transurban Group, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group, Technology One, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brightstar Resources Ltd (ASX: BTR) has announced that its $193 million equity raise and a $US120 million debt facility are complete, which combined will fund its Goldfields Project through to production.

There will also be a “material capital allocation” to advance the company’s Sandstone gold project through to a final investment decision, which is targeted for late calendar year 2027 or early 2028.

The company said on Friday in a statement to the ASX that the Goldfields project was expected to start producing gold in the June quarter of 2027, and was expected to generate 75,000 ounces a year of gold over six years, for $1 billion in free cash flow.

Brightstar would also receive further revenue through ore being produced from current underground mining operations, with 130,000 to 140,000 tonnes of ore to be produced at a grade of 1.8 to 2 grams per tonne of gold.

Soon to break ground

The company said the Goldfields project was almost ready to go.

Subject to the receipt of final approvals and the formal declaration of FID (final investment decision), all funds are now available to commence site development and construction at the Goldfields Project whilst maintaining a substantial capital allocation to accelerate exploration, feasibility studies and permitting activities at the Sandstone Project. The flexible debt funding structure included minimal financial covenants, no royalties or warrants and preserves full gold price upside for shareholders, whilst crucially allowing Brightstar to continue to allocate meaningful capital towards the Sandstone Project.

The capital raise was conducted at 50 cents per share, compared with the company’s current share price of 35 cents, with the stock falling sharply from levels higher than 50 cents in early March.

Funded to grow

Brightstar Managing Director Alex Rovira said the company was “delighted” to have finalised the funding package, especially in light of the current market volatility.

With both the equity and debt components now settled, Brightstar is in an exceptionally strong position to deliver major gold production growth from the Goldfields Project while in parallel unlocking the value of our Sandstone Gold Project through drilling and feasibility work streams. A strong balance sheet positions Brightstar favourably against the backdrop of difficult capital markets and ensures a material capital buffer and contingency for our development requirements and funding for Sandstone. We thank our shareholders and bond investors for their strong support and look forward to providing regular updates on both projects as we advance towards gold production in mid-2027.

Brightstar is valued at $290.5 million.

The post After a major capital raise this ASX gold company is fully-funded through to production appeared first on The Motley Fool Australia.

More reading

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• ASX All Ords gold stock lifts off on exploration success
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There could be some dirt cheap ASX 200 shares out there according to analysts at Morgans.

For example, the two shares in this article could more than double in value from current levels according to the broker.

Let’s see what it is recommending this month:

DigiCo Infrastructure REIT (ASX: DGT)

This data centre operator could be seriously undervalued according to the broker.

It highlights that its shares are trading at a deep discount to the net asset value (NAV) despite having high-quality and scarce assets.

Morgans has a buy rating and $4.15 price target on its shares. Based on its current share price of $1.83, this implies potential upside of 125% for investors over the next 12 months. It said:

DGT continues to trade at a c.50% discount to NAV of A$4.62/security, yet that NAV does not yet reflect the full value of the 88MW SYD1 expansion, which management estimates will deliver a further c.A$1.50/security of NAV uplift at a targeted 15% yield on cost. The core thesis rests on three pillars.

First, SYD1 is a genuinely scarce asset, a Tier 1 CBD carrier hotel with secured power and full planning approval operating in a structurally undersupplied market with a 200MW+ qualified demand pipeline. Second, the business has demonstrated operating momentum, yet cash earnings are yet to materialise. Third, Australian capital partnering at or above book value would be a significant valuation catalyst. Acknowledging the share price weakness, we continue to see the opportunity in DGT, retaining our Buy rating with a $4.15/sh price target.

Pro Medicus Ltd (ASX: PME)

Another ASX 200 share that could be dirt cheap according to the broker is health imaging technology company Pro Medicus.

While it was a touch disappointed with its first-half performance, it remains very positive and feels that recent share price weakness has been overdone.

Morgans has a buy rating and $275.00 price target on Pro Medicus’ shares. Based on its current share price of $123.48, this implies potential upside of more than 120%. It commented:

PME delivered record revenue and underlying EBIT up ~30% YoY, yet the result fell short of expectations on operating leverage with a jump in staff costs driving an EBITDA miss as Trinity contributed less than anticipated. The longer-term outlook strengthened with more than A$280m of new contracts signed and five-year contracted revenue now around A$1.1bn, though the market remains wary of a heavy 2H execution load and cost base increase.

It is not ideal to deliver a miss in this market, but the reaction feels overcooked and the setup into 2H is far better than the share price implies. Our valuation is reduced to A$275 (from A$290) and we retain our Buy recommendation.

The post Morgans says these ASX 200 shares could rise 120% appeared first on The Motley Fool Australia.

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• 3 ASX healthcare stocks tipped to soar over 100% higher this year
• Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today
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Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) healthcare stock Clinuvel Pharmaceuticals Ltd (ASX: CUV) is pushing higher today.

Shares in the biopharmaceutical company closed yesterday trading for $9.64. In morning trade on Friday, shares are changing hands for $9.52 apiece, up 0.5%.

For some context, the ASX 300 is down 0.3% at this same time.

This modest outperformance follows a major leadership announcement.

Here’s what’s happening.

ASX 300 healthcare stock makes CEO decision

In a letter to shareholders released this morning, Clinuvel chairman Jeffrey Rosenfeld highlighted the company’s record setting first half year financial results.

“Profitability continues despite the planned increase of expenses. Our cash reserves stand at $233 million as of 31 December,” he said. “What matters now is what we do with this position.”

Rosenfeld said that after a rigorous review of the company’s succession planning and strategic direction, the board has decided that Philippe Wolgen will continue as CEO of the ASX 300 healthcare stock.

“This is not a routine renewal. This is a strategic imperative,” Rosenfeld said.

He continued:

The coming 24 to 36 months represent the most critical execution phase in Clinuvel’s history. The risks are considerable. We will need to navigate regulatory uncertainty, clinical complexity, and market volatility.

In this environment, a change at the top would not merely delay us, it would set us back a minimum of two to three years. Worse, it could result in outright failure to execute our strategy. The board has examined this question from every angle. We are not willing to incur that cost.

Rosenfeld said the board examined the option of recruiting a United States-based executive and had reviewed candidates. However, he said the board concluded that “recruiting a new CEO would introduce strategic diversion, create unavoidable delays, and carve a void in institutional knowledge”.

Wolgen’s employment agreement will be extended under new terms currently being negotiated, which are likely to include long-term equity incentives.

“We are treating this exactly as we would treat the recruitment of a new American CEO – except we are retaining someone who already knows how to deliver and financially run a lean company,” Rosenfeld said.

What about the struggling Clinuvel share price?

Over the past 12 months, shares in the ASX 300 healthcare stock have slumped 20%

Addressing that decline, Rosenfeld said, “Market data tell a clear story: pre-revenue biotechs often outperform as perception and hope dominates investment decisions, while profitable companies executing quietly can be undervalued.”

He added:

The board, market analysts, and sophisticated institutions recognise that our share price does not reflect the company’s performance. It reflects a perceived ceiling on further growth. Our job, and Philippe’s, is to break through that ceiling.

The post ASX 300 healthcare stock outperforming today on ‘strategic’ leadership news appeared first on The Motley Fool Australia.

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• Morgans says these small-cap ASX shares could rise 30% to 80%
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Viva Energy Group Ltd (ASX: VEA) share price is in focus as the company welcomes an update to government support for its Geelong Refinery, lifting the critical Fuel Security Services Payment (FSSP) Margin Marker cap and collar by 3.6 cents per litre.

What did Viva Energy report?

• The Federal Government has increased the Geelong Refinery FSSP Margin Marker cap and collar by 3.6 Australian cents per litre (Acpl), equivalent to A$5.7 per barrel.
• FSSP support will now kick in when the average Geelong Refining Margin Marker drops below 10 Acpl (A$15.9/bbl) over a calendar quarter.
• The maximum support rate remains at 1.8 Acpl (A$2.9/bbl) on key transport fuel output.
• Viva Energy has invested roughly $500 million in refinery and storage projects since FSSP began, bolstering fuel security.
• Additional fuel storage infrastructure has been completed in Perth and South Australia.

What else do investors need to know?

The latest boost to the FSSP means support for the Geelong Refinery will better reflect today’s higher operating and capital costs. This follows extensive consultation with the government to ensure local refining remains viable and continues supplying about 20% of Australia’s fuel needs.

Viva Energy completed major investments over recent years, including an upgrade to produce low sulphur petrol and the construction of new diesel storage. These projects help meet stricter environmental standards and strengthen supply chains for both Victoria and the nation.

What did Viva Energy management say?

CEO and Managing Director Scott Wyatt said:

Today’s announcement underscores the important role that domestic refining plays in strengthening Australian energy security. Viva Energy is proud to own and operate one of the two refineries, that together produce approximately 20% of the country’s fuel requirements. Viva Energy’s refinery at Geelong produces approximately 50% of Victorian fuel requirements and holds a significant proportion of the country’s oil and fuel reserves. We welcome the Federal Government’s continued support for domestic refining.

What’s next for Viva Energy?

With the revised FSSP in place until at least the decade’s end, Viva Energy’s Geelong Refinery gains more stable financial backing. This allows the company to focus on further improvements, potentially advancing sustainability and energy security goals as part of its long-term strategy.

Investors can expect Viva Energy to maintain its investments in storage infrastructure and cleaner fuels, consolidating its role as a cornerstone of Australia’s fuels supply network.

Viva Energy share price snapshot

Over the past 12 months, Viva Energy shares have risen 42%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Viva Energy welcomes government boost to refinery support appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Ampol Ltd (ASX: ALD) shares are on the move on Friday morning.

At the time of writing, the ASX 200 stock is up 4% to $34.29.

Why is this ASX 200 stock rising today?

The fuel supplier’s shares are pushing higher following the release of an announcement outlining changes to the Fuel Security Services Payment (FSSP) and an update on its fuel supply operations.

According to the release, Ampol has welcomed amendments to the FSSP, which is a government support scheme designed to help maintain domestic fuel refining in Australia.

The key change is an increase in the collar, which is the level at which payments begin, from 6.4 cents per litre to 10.0 cents per litre. There is also a favourable adjustment to how refinery margins are calculated for Ampol’s Lytton refinery.

Management believes these changes will help reduce earnings volatility and better reflect the higher costs involved in refining fuel.

In simple terms, the FSSP acts as a safety net for refineries when profit margins are weak.

Under the revised structure, Ampol may receive financial support when refining margins fall below certain levels. This support is based on how much fuel is produced.

Ampol estimates this could provide up to $108 million per year in support for its Lytton refinery during periods of low margins.

Supply chain update

The ASX 200 stock also provided an update on fuel supply conditions, particularly in light of ongoing disruption in global oil markets.

Ampol noted that conflict in the Middle East has impacted global supply chains, especially in Asia where much of Australia’s imported fuel originates.

However, the company said it was well prepared, with sufficient crude oil and fuel inventories and confirmed supply orders at the start of the disruption.

To further support domestic supply, Ampol has delayed maintenance at its Lytton refinery. This is expected to increase local fuel production by around 300 million litres.

Commenting on the news, the ASX 200 stock’s CEO, Matt Halliday, said:

We welcome the adjustments made to the FSSP, which effectively increase the level at which payments under the scheme will commence. The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment. The amendments recognise the significant cost increases, and capital investment made, since the scheme began in 2021 and the importance of maintaining an economically viable domestic oil refining capability in Australia for the medium term by providing support when refiner margins do not cover the cost of production.

The amendment of the collar to 10 Acpl and the favourable adjustment to the Government’s refiner margin calculation, will also assist in reducing the volatility in Lytton earnings over time. “We look forward to continuing the dialogue with the Federal Government in the months ahead on the long-term prospects for transport fuels refining in Australia.

The post This ASX 200 stock is charging higher on big news appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

The Ampol Ltd (ASX: ALD) share price is in focus today as the company welcomes amendments to the Fuel Security Services Payment (FSSP), including raising the scheme’s support “collar” to 10.0 Acpl and deferring major refinery maintenance to boost domestic fuel supply.

What did Ampol report?

• FSSP collar increased from 6.4 to 10.0 Acpl; cap remains at 1.8 Acpl
• Favourable amendment to the Government Margin Marker calculation for Lytton refinery (+0.62 Acpl)
• Planned Turnaround & Inspection (T&I) at Lytton refinery deferred to August 2026
• Additional ~300 million litres of domestic fuel production enabled during deferral
• Scheme may provide up to $27 million support per quarter for Lytton’s operations at low margins

What else do investors need to know?

Ampol will engage in a second phase of the FSSP review in 2026, targeting longer-term fuel supply resilience and refining in Australia. Any material changes to the FSSP will depend on the outcome of this second-phase review.

The global oil market has been impacted by Middle East events and a reduction in Chinese fuel exports. Despite some disruptions in Asia, Ampol had strong inventory and confirmed orders at the outset of the conflict, helping ensure ongoing supply for its customers in Australia and New Zealand.

Ampol’s proactive deferral of its T&I maintenance at Lytton will help meet increased local demand, while a temporary easing of fuel standards by the government allows even more locally produced petrol to be sold domestically.

What did Ampol management say?

Matt Halliday, Managing Director and CEO, said:

We welcome the adjustments made to the FSSP, which effectively increase the level at which payments under the scheme will commence. The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment. The amendments recognise the significant cost increases, and capital investment made, since the scheme began in 2021 and the importance of maintaining an economically viable domestic oil refining capability in Australia for the medium term by providing support when refiner margins do not cover the cost of production.

The amendment of the collar to 10 Acpl and the favourable adjustment to the Government’s refiner margin calculation, will also assist in reducing the volatility in Lytton earnings over time. We look forward to continuing the dialogue with the Federal Government in the months ahead on the long-term prospects for transport fuels refining in Australia.

What’s next for Ampol?

Ampol will continue working with the Federal Government on the FSSP’s phase two review during 2026, which is expected to shape Australia’s future fuel resilience and refining sector.

In the short term, Ampol remains focused on maintaining reliable supply for customers, taking advantage of regulatory changes and operational flexibility to help meet domestic needs amid current global supply challenges.

Ampol share price snapshot

Over the past 12 months, Ampol shares have risen 35%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Ampol welcomes stronger refinery support and domestic supply boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Flight Centre Travel Group Ltd (ASX: FLT) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $11.54. In early morning trade on Friday, shares are changing hands for $11.62 apiece, up 0.7%.

For some context, the ASX 200 is down 0.2% at this same time.

That’s today’s price action for you.

Now here’s how the company is pursuing growth opportunities in the United Kingdom.

Flight Centre shares higher amid UK acquisition

Flight Centre shares are catching investor attention today after the company announced it has acquired Fresh Approach Holdings Limited.

Fresh Approach is a UK brand-experience, creative and meetings and events (M&E) agency. The company was founded in 2004 and employs about 65 people. Fresh Approach CEO Lee Harris and his leadership team will continue to run the business, which has offices in Manchester and Edinburgh.

The company did not divulge how much it is paying to acquire Fresh Approach, but reported it is not material to the company. The ASX 200 travel stock will use cash reserves to fund the acquisition.

Flight Centre shares could catch longer-term tailwinds, with Fresh Approach forecast to deliver about 18 million pounds (AU$34.2 million) in turnover and 1.2 million pounds in earnings before interest, tax, depreciation and amortisation (EBITDA) during the 2026 financial year (FY 2026).

Flight Centre said the acquisition will deliver a more seamless customer experience and expand its addressable markets beyond traditional travel management into M&E and professional services.

What did management say?

Commenting on the acquisition that could offer longer-term support for Flight Centre shares, managing director Graham Turner said, “Fresh is a quality business, with a strong market reputation and blue-chip client roster, that elevates our position in an attractive sector and gives us broader capability to support our corporate customers.”

Turner continued:

With Fresh’s addition, we can deliver a fully integrated M&E offering in the UK, reduce reliance on external suppliers and capture more value within the group.

This acquisition helps us deepen relationships with our corporate clients by offering more of the services they need in one place – creative, production and travel management delivered seamlessly.

Fresh unlocks meaningful growth opportunities on both sides of the relationship, from cross-selling into our UK corporate customer base to supporting Fresh’s clients with our global travel capabilities.

Fresh Approach CEO Lee Harris added, “Our capabilities will work in unison to remove the friction between planning and creation, all underpinned by strategic thinking and world class creative.”

With today’s intraday gains factored in, Flight Centre shares remain down 18.7% over 12 months.

The post Flight Centre shares lift amid latest UK acquisition news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Premier Investments Ltd (ASX: PMV) shares are racing higher on Friday morning.

At the time of writing, the retail conglomerate’s shares are up 8% to $13.55.

This follows the release of its half-year results before the market open.

Premier Investments shares jump on results day

For the six months ended 24 January, the company reported a 0.5% decline in Premier Retail sales to $452.8 million. This reflects a 4.9% increase in Peter Alexander sales to $312.3 million, which was offset by a 10.7% decline in Smiggle sales to $140.5 million.

During the half, four new Peter Alexander stores were opened and four were either expanded or relocated with further investment in fit out and customer experience. Management notes that over 15 further opportunities have been identified for both new and larger format stores in existing markets to better showcase a wider product offering.

Smiggle sales were down partly due to an 8.7% reduction in store numbers to 282 stores as the brand continues its focus on operational efficiencies. Smiggle’s wholesale channel delivered growth in first half driven by long term agreements in the Middle East and Indonesia.

To address this decline, following a major review, the company has “set a clear strategic objective to reclaim the 6-12 year core customer market through innovative product, marketing and visual merchandising, utilising Smiggle’s existing multichannel formats to drive sustainable sales and profit growth.”

First-half underlying Premier Retail EBIT came in at $119.3 million, which is largely in line with its guidance for “circa $120 million.”

On the bottom line, net profit after tax was $101.7 million. This was slightly stronger than the $99.3 million that UBS was forecasting for the half.

This has allowed the company to declare a fully franked interim dividend after skipping one last year due to its demerger and capital return. It revealed a payout of 45 cents per share. Based on its last close price, this equates to a generous 3.6% dividend yield.

Management commentary

Commenting on the half, the company’s chair, Solomon Lew, said:

Peter Alexander performed strongly again in 1H26 and continues to consolidate its position as the country’s leading sleepwear and gifting brand. The Brand’s priorities in the second half are driving further engagement from a loyal customer base and continuing local and global expansion of the brand footprint.

Smiggle maintains strong brand fundamentals and a well-established multi-channel footprint. The strategic review has quickly identified growth opportunities available to Smiggle and we will be working on product repositioning, simplification and brand elevation over the second half and beyond with a clear plan to bring this brand back to growth in FY27. We look forward to keeping our stakeholders updated on this.

Outlook

A strong second half is expected for the Peter Alexander brand, with its performance ahead of expectations after the first seven weeks.

And while Smiggle’s struggles are expected to continue in the near term, a return to growth is expected in FY 2027.

In light of this, subject to current trading conditions continuing, the company expects Premier Retail FY 2026 Underlying EBIT to be around $183 million. This will be down from $195.4 million in FY 2025.

The post Premier Investments shares jump 8% on results and big interim dividend appeared first on The Motley Fool Australia.

More reading

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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 recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Furniture company Koala is aiming to raise $20 million in new capital and list on the ASX, with the profitable company on track to substantially grow revenue this year.

The company will issue $20 million worth of new shares as part of the initial public offer while existing shareholders will sell $48.1 million worth of shares, for a total of $68.1 million available to new investors.

The company will be valued at $305.3 million on listing following the capital raise.

Company growing strongly

The prospectus says the company was founded in 2015 and experienced early success selling its Koala mattress, “quickly becoming a leading Australian mattress brand”.

The company launched in Japan in 2017, and in 2018 launched its first sofa product in Australia, with that range also subsequently expanding to Japan.

 The prospectus says further:

In November 2023, Koala launched in the US market with a targeted expansion and disciplined investment, delivering significant early growth. In 2025, Koala expanded its international footprint further with the launch into the UK market.

Chair Michael Gordon said the company was well-placed for growth.

As a furniture company, Koala is exposed to the global furniture market, which benefits from tailwinds including the growth of e‑commerce, increased time spent at home due to the shift to remote work, a desire to maximise the utilisation of living spaces, a growing emphasis on convenience, premiumisation, and the demand for more sustainable products. The business has a significant opportunity before it to grow in Koala’s established markets, scale its presence in newer markets and enter into additional markets over time to grow the business. The global furniture market has shown relatively steady and consistent rates of moderate growth in Koala’s key categories. Koala’s ability to enter new markets and scale is driven by its capital‑light business model and in‑house innovation capabilities, which enables the team to promptly adapt to changing consumer needs and market trends.

Chief executive officer and cofounder Dany Milham said in the prospectus the company was dedicated to providing quality, durable furniture.

He said the company’s success internationally, “reflects a broad appeal for Koala’s Australian design, innovation, and brand”.

Koala trading profitably

The prospectus shows that the company generated revenue of $276.7 million in FY25, and made a net profit of $6.6 million.

The company is forecasting FY26 revenue of $332 million and net profit of $12.3 million.

The company will be named The Koala Company Ltd and trade under the ticker KOA.

The offer period for new shares closes on March 24, with the shares expected to start trading on the ASX on 31 March.

The post Which fast-growing Aussie furniture brand is about to list on the ASX? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.