The WiseTech Global Ltd (ASX: WTC) share price is up 10.9% to $58.79 in Wednesday trading after the provider of software solutions to the logistics industry reported full-year revenue up 25% to $632 million and net profits after tax up 72% to $182 million.

The company declared a fully franked final dividend of 6.40 cents per share, taking total FY22 dividends to 11.15 cents per share, an increase of 71% compared to FY21.

The WiseTech final dividend will be paid to eligible shareholders on 7 October 2022. WiseTech shares go ex-dividend on 9 September 2022. 

Based on the WiseTech share price today, the stock trades at more than 103 times earnings and on a fully franked dividend yield of 0.15%.

Looking ahead, WiseTech said it anticipated FY23 revenue growth of 20–23% and earnings before interest, tax, depreciation, and amortisation (EBITDA) growth of 21–30%.

Over the past 12 months, WiseTech shares have gained 62%, compared to a fall of 7.6% in the S&P/ASX 200 Index (ASX: XJO). By contrast, fellow large-cap tech stock Xero Limited (ASX: XRO) shares have fallen 42% in the last year.

The post WiseTech Global hikes full-year dividend by 71% as profits surge higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Bruce Jackson has positions in WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This ASX lithium share is steaming ahead on the market today.

Arcadia Minerals Ltd (ASX: AM7) shares are trading at 45.5 cents, a 133.33% gain. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is lifting 1.3% today. Core Lithium Ltd (ASX: CXO) shares are lifting 2.85%, while Pilbara Minerals (ASX: PLS) shares are up 2.6%.

So why is this ASX lithium share doing so well today?

Massive resource boost

Arcadia Minerals is exploring mostly battery metals at a range of projects. The company is looking for lithium, tantalum, nickel, copper and gold.

Today, Arcadia advised of a 560% boost to the JORC mineral resource estimate (MRE) at a key lithium project.

Arcadia is exploring the Bitterwasser Lithium-in-Clay Project in Kalkrand, Namibia.

The updated inferred MRE defined over the Eden Pan location is:

• 85.2 million tonnes at 633 parts per million (ppm) for 286,909 tonne (t) Li2Co3 (lithium carbonate equivalent)

Cyclone test work shows the potential to produce concentrate of 59.6 million tonnes at 817 ppm for 259,231t of lithium carbonate at the project.

The company is now planning to conduct large-scale test work. Arcadia is aiming to find out the best recovery process to potentially produce “battery grade lithium carbonate product”. The company will work with the University of Stellenbosch on this process.

Commenting on the news, CEO Philip le Roux said:

We’re encouraged by the significant increase in metal content at the Bitterwasser Lithium-in-Clay project, which is now equivalent to a 1% Li2O hard rock resource of 11.6Mt.

Arcadia Minerals share price snapshot

The Arcadia Minerals share price has soared 140% in the past year. In the year to date, Arcadia shares have surged 116.7%.

In comparison, the ASX 200 Materials Index is nearly flat in the past year.

Arcadia has a market capitalisation of about $21.25 million based on the current share price.

The post Here’s why this ASX lithium share is rocketing more than 100% today appeared first on The Motley Fool Australia.

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• Tomorrow: What I’m thinking and what I’m about to buy…
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• Sonic Healthcare share price charges higher on 10% FY22 dividend boost
• APA share price dips despite $1.4b growth pipeline

Motley Fool contributor Monica O’Shea 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.

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The Sonic Healthcare Limited (ASX: SHL) share price is up 4.52% in trade on Wednesday.

Sonic Healthcare shares closed yesterday trading for $33.19 and are currently trading for $34.69.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) global pathology provider’s full-year results for the 12 months ending 30 June (FY22).

Here are the highlights.

Sonic Healthcare share price gains on profit and dividend boost

• Revenue of $9.3 billion, up 7% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.8 billion, an increase of 11% year on year
• Net profit increased 11% from FY21 to $1.5 billion
• Full-year dividend of $1.00 per share, fully franked, up 10% from the prior year
• Available liquidity as at 30 June of $1.6 billion

What else happened during the year?

The 7% revenue growth that looks to be helping drive the Sonic Healthcare share price higher today was comprised of 3% growth in COVID testing, 2% in its base business, and 2% from acquisitions.

The company has ongoing COVID testing in all seven countries where it operates, with $2.4 billion of COVID revenue in FY22, up 13% from FY21. Since March 2020, Sonic reported it has performed more than 55 million COVID PCR tests.

The company invested $628 million in acquisitions over the year, including the acquisitions of Canberra Imaging Group and ProPath, and said it is pursuing further opportunities in FY23.

The final dividend of 60 cents per share, fully franked, was up 9% from the prior year.

With gearing at record low level, Sonic said it has no current exposure to interest rate increases; all remaining debt is fixed rate and long term.

The company’s on-market share buyback of up to $500 million is ongoing, with $294 million completed to date.

Sonic’s AI initiative, Franklin.ai, was said to be “progressing at pace”.

What did management say?

Commenting on the results that are pushing the Sonic Healthcare share price higher today, CEO Colin Goldschmidt said:

Sonic Healthcare and our people have continued to play a major role in combating the COVID-19 pandemic during the 2022 financial year… Concurrently, we have also provided non-COVID essential medical diagnostic services for more than 100 million patients a year…

Sonic’s revenue grew organically by 5% for the year, with base business organic growth of 2.1% augmented by significant growth in COVID-related revenues. The contributions of synergistic acquisitions took total growth for the year to 7%. Twelve months ago, we would never have expected our COVID-related revenues to grow by 13% in 2022.

What’s next?

Sonic Healthcare didn’t provide guidance for FY23 due to pandemic-related unpredictability.

The company does expect its base business growth to accelerate. And it doesn’t forecast major cost impacts from inflationary pressures, with wage increases expected to be moderate.

Commenting on the outlook, Goldschmidt said, “It remains difficult to predict future revenues from COVID-19 testing, however we do expect ongoing demand, coupled with seasonally weighted increased testing for other respiratory viruses.”

Sonic Healthcare share price snapshot

The Sonic Healthcare share price is down 26% in 2022. That compares to a year-to-date loss of 6% posted by the ASX 200.

The post Sonic Healthcare share price charges higher on 10% FY22 dividend boost 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 Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The APA Group (ASX: APA) share price is rangebound from the open on Wednesday following the release of the company’s FY22 results.

At the time of writing, APA shares are 1.52% in the red at $11.37 apiece.

APA grows top line, profit down

Key takeouts from the period include:

• Revenue growth of 4.3% year on year, recognising $2.23 billion at the top line
• Full-year underlying EBITDA up 3.9% to $1.7 billion from $1.629 billion in FY21
• Free cash flow (FCF) growth of 19.8%, realising $1.01 billion in FCF for the year
• Reported net profit after tax (NPAT) of $240 million, down 13.9% year on year
• FY22 distribution of 53 cents per security, up 3.9% year on year

What else happened in FY22 for APA?

APA advanced a number of projects last financial year, investing over $500 million in growth projects across the period.

It invested $270 million to progress the stage 1 and 2 expansion of the East Coast Grid alongside the $460 million Northern Goldfields interconnect, Mica Creek Solar Farm.

The APA board also approved a 28 cents per security dividend. This brings the FY22 APA dividend to 53 cents, a 4% increase from FY21.

APA also reports it has advanced “significant investments” in the renewable energy transition, boasting “an organic growth pipeline in excess of $1.4 billion”.

Management commentary

Speaking on the announcement, APA CEO Rob Wheals said:

APA has delivered another solid result in a year that has highlighted the critical role that APA’s gas transmission assets play in delivering energy security to Australians when it is needed most.

Gas power generation and APA’s existing gas infrastructure has stepped up to help fill the electricity supply gap across Australia’s east coast, underscoring the critical role that gas and gas infrastructure will play as the energy transition accelerates, including as the perfect complement to firm renewable generation.

What’s next for APA?

The group forecasts a 3.8% increase in its dividend payment in FY23, projecting a total payment of 55 cents per share.

It also noted it has a number of new projects underway across gas transmission and renewable energy generation.

The company also clarified its view on emissions looking ahead:

Introduction of 2030 interim climate commitments to reduce emissions by 30% in gas transmission, reduce emissions intensity by 35% in power generation and implement an active program to reduce emissions [APA] can control in electricity transmission.

APA Group share price snapshot

In the last 12 months, the APA share price has gained roughly 16%, or 15% this year to date.

The post APA share price dips despite $1.4b growth pipeline appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 positions in and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Netwealth Group Ltd (ASX: NWL) share price is surging higher this morning on the back of a strong lift in operating cash flow for FY22.

Shares in the ASX-listed wealth management platform are currently trading for $14.22 each, an 8.55% jump on yesterday’s closing price

The company reported strong top-line growth but net profit after tax only increased slightly.

Let’s take a closer look at the Netwealth results for FY22.

What did Netwealth report?

Here is a high-level skim over the key results for FY22.

• Revenue grew 19.6% to $173.9 million, relative to FY21
• Operating expenses lifted 30.7% to $85.1 million
• Net profit after tax (NPAT) went up by 2.7% to $55.6 million
• Declared a final fully franked dividend of 10 cents per share, resulting in a total dividend of 20 cents per share for the year

Funds under administration increased by 18.1% to $55.6 million and net inflows rose by 32.4% to $13 million. Funders under management went up by 11.3% to $13 million but net inflows dropped by 20.4% to $2.6 million due to the downturn in equity markets.

Netwealth’s managed funds segment also bore the brunt of the fall in the equities market as the managed funds balance declined 0.1% and net inflows fell 6.8%.

Fund inflows generate more revenue for Netwealth because it means more transactions are processed on its platform, resulting in greater administration revenue. This is why it’s an important metric to track.

Despite these headwinds, Netwealth still reeled in an additional 18,823 client accounts to 115,642, representing an uptick of 18.8%.

The big surge in operating expenses is down to a significant lift in employee headcount of 63 roles for the year. Most of these were technology recruits — they accounted for 50%.

This was the major reason why net profit after tax didn’t move that much.

However, operating cash flow improved from $37.8 million to $59.6 million. Netwealth’s cash balance increased by $6.9 million to $88.3 million.

The final fully franked dividend of 10 cents per share totals $24.4 million and is payable on 29 September. The ex-dividend date is 30 August.

What else happened in FY22?

Netwealth was awarded as the “Best Overall Platform” in the Investment Trends December 2021 Competitive Analysis and Benchmarking Report. Netwealth was also rated number one in the reporting and transaction tools categories.

More recently, Netwealth was rated first in the Investment Trends May 2022 Adviser Technology Needs Report for “Overall Satisfaction”. This is the 10th consecutive year Netwealth has been crowned with this accolade.

On the competition front, Netwealth continues to be the fastest growing wealth platform provider based on net funds flows. In terms of market share, Netwealth is currently sixth behind the likes of Westpac Banking Corporation (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), AMP Ltd (ASX: AMP), and Macquarie Group Ltd (ASX: MQG).

Netwealth leader succession

Founder and joint managing director Michael Heine advised he will be stepping away from day-to-day management from 1 October. His son and joint managing director Matt Heine will be appointed as sole managing director.

Michael Heine will continue as an executive director on the board.

What’s ahead for the Netwealth share price?

Netwealth disclosed that $2.5 million of capital will be allocated to the expansion of the data analytics and business management platform, Xeppo. Netwealth currently holds 25% ownership in Xeppo with the option to buy 100% over the next four years.

Management notes this investment will enable financial advisers, licensees, and model managers to improve their interaction with clients.

Netwealth is guiding funds under administration net inflows in the range of $11 billion to $13 billion in FY23.

Netwealth share price snapshot

Year to date, the Netwealth share price has fallen around 20% along with the rest of the ASX growth stocks but has rebounded by 9% in the past month.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 7% year to date but has clawed its way back in the last month to post a gain of 3%.

The market capitalisation for Netwealth is currently around $3.44 billion.

The price-to-earnings (P/E) multiple for Netwealth is around 61.72 times, so there is a lot of optimism in the current Netwealth share price.

The post Netwealth share price rises 9% on strong revenue growth in FY22 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang owns shares of Netwealth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth. The Motley Fool Australia has positions in and has recommended Netwealth. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of electric car maker Tesla (NASDAQ: TSLA) were trading sharply higher on Tuesday. The growth stock rose as much as 2.4%. While the stock lost some of these gains later in the day, shares were still up nearly 2% as of 12:50 p.m. ET.

The stock’s gain is likely due to trading bets and hype surrounding the company’s planned stock split this week. Tesla shares are splitting on a 3-for-1 basis. The stock will start trading on a split-adjusted basis on Thursday, Aug. 25.

So what

Tesla stock has had a rough year, sliding about 16% year to date. But the stock’s year-to-date return would have been much worse if it wasn’t for a sharp recovery over the last three months. During this period, the stock is up more than 30%. This compares to a 6% gain for the S&P 500.

While the stock’s move higher on Tuesday may be due in part to traders making bets on the stock in anticipation of a potential bump higher this week as the company executes its stock split, part of the optimism may also be a continuation of Tesla’s upward trend over the last three months.

Now what

Whatever the main reasons for the stock’s nice uptick on Tuesday, investors should stay focused on the electric car maker’s fundamentals. After all, it’s impossible to know how the stock will trade throughout the week as Tesla shares are split anyway.

Tesla’s second-quarter vehicle deliveries fell sequentially as the company dealt with the ramifications of Shanghai government restrictions on factories in the region as the Chinese market implemented strict procedures to stop the spread of COVID-19. But despite a sequential decline, deliveries still grew 27% year over year in Q2. Even more, management said it finished up the quarter with strong production rates, setting up the company for higher production levels in Q3 and potentially even a higher year-over-year growth rate in deliveries. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla stock is rising ahead of its stock split appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Reece Ltd (ASX: REH) share price is lifting during the early hours of trading on Wednesday following the release of its FY22 results. At the time of writing, the Reece share price is up 3.59%, trading at $15.74.

The company actually posted its earnings after market hours yesterday, leaving investors to digest the news overnight and into this morning.

Reece share price lifts alongside revenue, profit

Key takeouts from the company’s 12 months include:

• Sales revenue up 22% year on year to $7.65 billion for the year
• Adjusted EBITDA up 16% from the previous year to $838 million
• Net profit after tax (NPAT) climbed another 37% to $392 million from last year’s $286 million
• Earnings per share (EPS) growth of 37% surmounting to 61 cents per share
• Fully franked final dividend of 15 cents per share, up 25%

What else happened for Reece last period?

There was growth from top-to-bottom throughout Reece’s income statement for FY22. Revenue jumped 22% whilst NPAT followed suit with a 37% year-on-year gain.

In its Australia and New Zealand operations, sales revenue increased by 12% to $3.5 billion, up from $3.15 billion in FY21.

Meanwhile, Reece also continued its initiatives to bring the Reece brand into the US market, growing its footprint to 204 stores and refurbishing another 11 stores during the year. 

With the 37% gain in EPS, the board was able to authorise a final dividend of 15 cents per share, recorded on 12 October, payable on 26 October 2022.

Management commentary

Speaking on the results, Reece Group CEO, Peter Wilson said:

We have navigated another year of disruption and change in FY22 to deliver a very strong result, demonstrating the resilience of our business. Despite being hit by ongoing challenges, the team successfully navigated the ongoing pandemic, supply chain constraints and natural disasters to continue delivering for our customers, who were busier than ever.

Looking ahead, we believe we are past the peak of the cycle in our end markets and are prepared for
softening conditions. The macro setting is complex and will require careful management, but Reece has a strong track record of managing and investing to improve its business through the cycle.

Reece share price snapshot

In the last 12 months, the Reece share price is down more than 36% or 41% this year to date.

Despite its struggles, it has continued to gain over 8% in the past single month of trade.

The post Reece share price spikes 4% despite ‘year of disruption’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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.

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The Hansen Technologies Limited (ASX: HSN) share price is tumbling following the release of the company’s full-year earnings.

The $1 billion All Ordinaries Index (ASX: XAO) energy, water, and communications-focused software and services provider’s stock opened 1.8% lower at $5.55 and has continued to dive.

Right now, the Hansen share price is $5.24, 7.26% lower than its previous close.

Hansen share price tumbles on full-year earnings

Here are the key takeaways from the ASX tech company’s financial year 2022 (FY22) results:

• Revenue came in at $296.5 million – down 4% on that of the prior corresponding period (pcp)
• Statutory net profit after tax (NPAT) slumped 27% to $41.9 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 16% to $99.9 million
• Basic earnings per share (EPS) of 29 cents – a 21% fall
• Declared 5 cent, 30% franked final dividend, bringing its full-year payout to a record 12 cents

While its results might look discouraging, they are significantly brighter when adjusted for a prepaid licence received from Telefonica in FY21 that generated $21 million of revenue.

Such adjustments see Hansen’s revenue lifting 3.4% year-on-year and its EBITDA rising 1.7%. Meanwhile, its NPAT is suddenly 7.4% higher while its basis EPS has risen 5.4%.

The company’s free cash flow also exceeded $63 million in FY22. It used that to pay down borrowings, fund dividends, and build reserves.

What else happened in FY22?

The major news from Hansen’s camp last financial year was of a proposed takeover offer put to the company by BHG Capital.

The firm posted a $6.50 per share bid for the tech stock in June 2021 before withdrawing the offer in September. The Hansen share price sunk 9% on the back of the retraction.

What did management say?

Hansen CEO Andrew Hansen commented on the company’s earnings, saying:

Despite all the headwinds of the past 12 months, I am incredibly proud that Hansen continues to build on its more than 50 years of sustainable, profitable, and cash-generative growth.

The FY22 result reinforces the long-term resilience of our business – a business where we consistently put our customers and our people at our heart to deliver mission-critical software solutions to the essential sectors of society.

What’s next?

The company plans to continue working towards strategic growth in its existing markets and opportunities to expand into other markets. Hansen said:

We are confident in our people, in the strength of our growing talent pool spread across the world, and in the investment that we have made in our global sales and mergers and acquisition teams, which combined will see continued organic and inorganic growth delivered to our shareholders over time.

Hansen Technologies share price snapshot

Today’s fall has plunged the Hansen Technologies share price into the long-term red.

It’s currently trading 2% lower than it was at the start of 2022. It has also fallen 13% since this time last year.

For comparison, the All Ordinaries Index has dumped 9% year to date and 6% over the last 12 months.

The post Hansen Technologies share price plunges 7% despite record dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hansen Technologies. 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.

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The Iluka Resources Ltd (ASX: ILU) share price is rocketing after the company released its half-year earnings results today.

The company’s share price is currently swapping hands at $10.07, a 6.56% gain. In comparison, the  S&P/ASX 200 Index (ASX: XJO) is up 0.65% at the time of writing.

Let’s take a look at what the ASX mineral explorer reported to the market.

Iluka delivers 186% profit boost

Highlights of Iluka’s H122 financial presentation for the six months to 30 June 2022 include:

• Net profit after tax (NPAT) soared 185.7% on H121 to $368.5 million
• Underlying group earnings before interest, tax, depreciation and amortisation (EBITDA) lifted 70.5% to $525.5 million
• Net total cash increased to $600.3 million
• Free cash flow of $349.8 million
• Interim fully franked dividend more than doubled to 25 cents per share.

What else did the company report?

Iluka advised that mineral sands revenue lifted 29.8% to $954.9 million, and EBITDA surged 68.9% to $505.4 million. The EBITDA margin for mineral sands lifted from 40.7% in H121 to 52.9% in H122.

The company said the revenue boost reflected high prices spanning all of its products. Zircon prices lifted 40%, while rutile prices soared 23%. The lower US dollar also had a positive impact on Iluka’s revenue.

Iluka’s interim dividend soared 108.3%, from 12 cents per share in H121 to 25 cents per share in H122.

The company completed the demerger of Sierra Rutile in the first half of 2022. The explorer also made a final investment decision on the Eneabba rare earths refinery in Western Australia.

Management comment

Commenting on the results, Iluka managing director Tom O’Leary said:

Iluka delivered strong outcomes in the first half, both in terms of financial performance and progress on our strategic priorities.

In a macroeconomic environment characterised by inflation and uncertainty, we increased margins and strengthened our balance sheet. This was the result of strong demand for Iluka’s products, industry supply constraints and resultant pricing traction.

What’s ahead?

Iluka said demand for its products remained strong and supply was tight. European tile production was robust, while Chinese tile production faced challenges in the property market along with COVID-19 restrictions. The company added that demand from the ceramics industry in Brazil and Mexico was higher, and foundry and fused zirconia demand remained elevated in the United States.

Iluka’s zircon sales for the third quarter of the calendar year 2022 are fully contracted amid tight supplies.

Iluka highlighted only minimal spot volumes of its high-grade titanium feedstocks were up for grabs in the second half of FY22. Demand is high in North America, with supply security a priority for customers amid the Ukraine war and other global challenges.

Iluka said there was strong customer interest in its remaining uncontracted tonnages from 2023.

O’Leary said Iluka was “well placed” as customers prioritise security of supply. Looking ahead, he added:

Our Australian operations are configured at maximum settings and sales over the second half are likely to continue to be constrained by production. Furthermore, the second half will see first production from the restart of Synthetic Rutile Kiln 1 at Capel.

Other approaching development milestones include the commencement of ground works for the Eneabba rare earths refinery; the completion of the definitive feasibility study for the Balranald project; and the completion of preliminary feasibility studies for the Wimmera and Atacama project

Iluka share price snapshot

The Iluka share price has surged more than 13% in the past 12 months, while it has gained 1.4% in the year to date. Iluka shares have climbed 4.5% in the past month.

Iluka has a market capitalisation of more than $4.2 billion based on the current share price.

The post Iluka share price leaps 6% following monster dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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.

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The Tabcorp Holdings Ltd (ASX: TAH) share price is climbing today following the release of the company’s full-year results.

At the time of writing, the gambling company’s shares are up 5.43% to 97 cents.

Let’s take a look at the results in more detail.

Tabcorp share price up on financial discipline and strong balance sheet

Tabcorp delivered its FY 2022 results for the 12 months ended 30 June 2022. Here are some of the key financial highlights:

• Group revenue down 4.3% to $2,373 million
• Group earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations of $381.6 million, down 21.7%
• Statutory net profit after tax (NPAT) of $6,775.9 million, includes gain on demerger of $6,513.8 million (FY 2021: $269.4 million)
• Final dividend of 6.5 cents per share, fully franked, bringing the full-year dividend to 13 cents per share, down 10.3%
• Strong balance sheet with net debt of $20 million excluding lease liabilities and significantly restricted cash

What happened in FY 2022?

In FY 2022, Tabcorp’s wagering and media divisions recorded $2,182 million in revenue, down 5.1% year on year. Both businesses were significantly impacted by COVID-19-related retail closures in the first half, particularly in New South Wales and Victoria.

Furthermore, a record number of horse racing abandonments was experienced due to wet weather in the second half.

On a positive note, the re-opening of venues from the second quarter showed promising signs of recovery for the remainder of the year.

Across the gaming services division, revenue for the year was up 5.3% to $193 million. Max venue services attributed $119.3 million in revenue, up 20% from FY 2021. On the other hand, max regulatory services fell 12.2% to $73.6 million due to COVID-19 closures in New South Wales.

The board announced a fully franked final dividend of 6.5 cents per share. The latest dividend reflects five months of earnings from the demerged Lotteries and Keno business, and a full six months of earnings from Tabcorp’s continuing businesses.

What did management say?

Tabcorp managing director and CEO, Adam Rytenskild commented:

FY22 was a disrupted year with first half COVID lockdowns in our two largest markets, a record number of race meetings washed out and the priority challenges of a company pre-demerger. We are seeing stabilisation in our digital market share, and our total focus is now on executing our strategy to transform and pursue growth. We feel the next results, reflecting this half, will be a good test for the improvements we are making.

What’s the outlook for FY 2023?

Tabcorp advised that it’s determined to grow the business and make it more competitive in the market in FY 2023.

For the first month of the financial year (July), digital revenue market share jumped to 25%.

In addition, group revenue increased by 14.6%, and wagering and media revenue lifted by 11.2% compared to the prior corresponding period.

Tabcorp is focused on launching the new TAB app in September, ahead of the major spring racing carnivals. So far, customers who have trialled the app have delivered positive feedback.

The Queensland structural reform to an operator agnostic, sustainable funding structure remains on track. That means Tabcorp will pay the same wagering taxes and fees as Northern Territory licenced operators.

Following the company’s cost and efficiency program, management is targeting 3% to 4% cost growth on FY 2022 pro forma.

FY 2023 capital expenditure is forecast to be up to $150 million, with depreciation and amortisation of between $250 million and $260 million.

Tabcorp share price snapshot

Since the beginning of 2022, the Tabcorp share price has largely moved in circles to gain 1.5% for the period.

For context, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is down 18% year to date.

Tabcorp commands a market capitalisation of approximately $2.15 billion.

The post Tabcorp share price rises 5% as management focuses on ‘pursuing growth’ appeared first on The Motley Fool Australia.

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More reading

• Why buying Tabcorp shares right now ‘looks like a solid bet’: fundie

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

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