Investors in Fortescue Metals Group Limited (ASX: FMG) shares may increasingly be looking at what’s going on with Fortescue Future Industries (FFI). It does have some big aspirations. But, there’s a major factor that could impact how much FFI can pursue its goals.

When a business has major plans, it comes with a sizeable price tag. Money doesn’t just appear out of nowhere.

So, how can Fortescue run its normal business and grow FFI?

The strategy that management has employed is that its capital allocation framework includes an allocation of 10% of net profit after tax (NPAT) to fund FFI.

For example, in FY21, Fortescue generated net profit of US$10.3 billion. That allowed Fortescue to allocate US$1 billion to FFI, with an expenditure of US$122 million in FY21.

In FY22, FFI’s total expenditure was US$534 million, including US$148 million in capital expenditure and US$386 million in operating expenditure.

The miner is expecting FY23’s anticipated expenditure as between US$600 million to US$700 million, including US$100 million of capital expenditure and US$500 million to US$600 million of operating expenditure.

What will impact the Fortescue Future Industries dream?

Fortescue has committed to putting a specific percentage of its net profit each year into FFI.

But, there’s no specific dollar amount because Fortescue’s profit can be significantly variable.

Fortescue is one of the world’s largest iron ore miners. Its profit is heavily influenced by the iron ore price.

A commodity business generates revenue from how much of the commodity it produces and the price of that commodity.

It costs Fortescue roughly the same amount to mine a tonne of iron whether the iron ore price is US$10 higher per tonne or US$10 lower per tonne. Of course, it does have to pay a bit more to the government if the iron ore price is higher.

Fortescue’s net profit in FY21 was US$10 billion for the full year. So far, in FY22, investors have heard that the first six months to 31 December 2021 generated US$2.8 billion of net profit. We’ll soon hear about how the business performed in the second half and for the full year of the 2022 financial year. Of course, this will then influence how much Fortescue will allocate to FFI.

FFI has been spending less money than what it has been allocated.

With China being a key buyer of iron ore, it will have a major influence on Fortescue’s profit and therefore how it can progress with FFI.

What is it spending the money on?

It is doing a number of different things – it’s taking a global leadership position in green energy and technology and wants to get to the point where it can produce millions of tonnes of green hydrogen annually.

One of the first steps is that Fortescue Future Industries has advanced the construction of the 2GW capacity electrolyser manufacturing facility at the green energy manufacturing centre in Gladstone, Queensland.

It’s also advancing plans in a number of countries to produce and supply green hydrogen. For example, it recently entered into a memorandum of understanding (MoU) with Firstgas Group to identify opportunities to produce and distribute green hydrogen in New Zealand.

Fortescue share price snapshot

Over the past month, Fortescue shares have risen by around 14%

The post 1 factor that could drag on Fortescue Future Industries’ green dream appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Can shareholders have bigger dividends AND more spending on Fortescue Future Industries?
• Why is the Rio Tinto share price lagging the ASX 200 on Tuesday?
• ‘Self-interested billionaires’: Fortescue share price climbed today despite union war of words
• Guess which ASX All Ords share just inked a new deal with Fortescue
• How did the Fortescue share price respond last earnings season?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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.

from The Motley Fool Australia https://ift.tt/RL1mcfu

Fund manager Wilson Asset Management (WAM) has identified two top small-cap ASX shares in one of the portfolios it manages that could be investment ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which focuses on small-cap ASX shares with a market capitalisation under $300 million at acquisition.

WAM says WAM Microcap targets “the most exciting undervalued growth opportunities in the Australian microcap market”.

These are the two small-cap ASX shares the fund manager outlined in its most recent monthly update:

Silk Laser Australia Ltd (ASX: SLA)

Silk Laser was described as one of Australia’s largest specialist clinic networks, offering a range of non-surgical aesthetic products and services.

The Silk Laser share price recovered in July after being sold off at the end of FY22 because of concerns about a recession and how consumers might tighten their spending, according to WAM.

The fund manager noted that the small-cap ASX share “strategically” acquired Victoria-based Unique Laser clinics, expanding Silk Laser’s presence on the east coast.

Why did WAM invest in the company? The investment team said:

Our investment thesis is based on growth in the overall non-surgical aesthetic market, supporting the consolidation and rollout of a greater number of clinics around Australia. We are positive on the outlook for the business as we see significant clinic rollout and consolidation opportunities for the company across Australia and New Zealand.

Dusk Group Ltd (ASX: DSK)

WAM described Dusk as an Australian specialty retailer of home fragrance products, offering a range of “premium quality products at competitive prices”.

One of the main things that caught investor attention about the small-cap ASX share during the month was that Dusk revealed a trading update and guidance for FY22 that was “ahead of market expectations.”

Dusk’s vertical retail model and long-term supply partnerships have allowed it to maintain “well-balanced” inventory levels to meet consumer demand.

WAM said:

We believe that Dusk Group is an undervalued growth company with a niche offering and a large store rollout opportunity into new regions such as New Zealand and the United Kingdom.

The post 2 ASX shares this fund manager thinks fits the bill for ‘undervalued growth’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX shares to buy that have halved this year
• Dusk share price storms higher following FY22 trading update

Motley Fool contributor Tristan Harrison has positions in WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended Dusk Group Limited and SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/KVREXZY

Motley Fool Australia Chief Investment Officer Scott Phillips joined Natalia Cooper for Nine’s Late News on Thursday night to discuss Westpac Banking Corp (ASX: WBC)’s home loan rate increase, a jump in oil prices to cause pain at the pump, Transurban Group (ASX: TCL)’s profit and yet another fall in unemployment.

The post Unemployment falls, oil rises, and we’re back on the roads. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 10%, why has the Westpac share price smashed other ASX banks this past month?
• Everything you need to know about the latest Transurban dividend
• Transurban share price slumps despite revenue lifting to $3.4b
• Brokers say BHP and this ASX 200 share are buys
• Is the Westpac share price a buy following the bank’s latest update?

Motley Fool contributor Scott Phillips 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TMNzybR

The AMP Ltd (ASX: AMP) share price has strengthened in recent times and has jumped from lows of 95.5 cents on 30 June to rest at $1.13 apiece on Friday afternoon.

The financial services company is up almost 12% over the past month and also holds a 12% gain this year to date.

In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also soared from 52-week lows on 17 June.

Is the AMP share price making a comeback?

Zooming further out, the ASX financial share has fallen almost 78% over the past five years.

Moreover, the AMP share price struggled earlier in the week, following the release of the company’s half-year financial results the week prior.

As a result, analysts at JP Morgan cut their price target on the share to $1.10, a 12% reduction from previous estimates.

This is considered a fair price, according to the broker.

Meanwhile, the share is rated as a sell by three out of seven brokers covering the company, according to Refinitiv Eikon data.

There are also three brokers who rate AMP as a hold, with just one buy recommendation. The consensus price target is $1.04 apiece from this list.

Moreover, ASX financials have also strengthened as a basket and have pushed off yearly lows, as seen in the following chart.

This strength looks to have transposed onto the AMP share price over these past two months, as is seen on the chart.

AMP has gained around 5% over the past 12 months, while the broader ASX 200 Financials Index has lost around 5% over the same timeframe.

The post Up 12% in a month, is the AMP share price finally on the comeback trail? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the AMP share price having such a lousy start to the week?
• Looking to buy AMP shares? Read this first
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why AMP, OFX, Rio Tinto, and Telstra shares are dropping
• AMP share price slides as $1.1b pledged to investors

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.

from The Motley Fool Australia https://ift.tt/wzfepJF

ASX shares are broadly edging higher today, sending the All Ordinaries Index (ASX: XAO) up 0.3%.

But one little-known ASX share is leaving those gains in the dust, soaring 15% higher.

Any guesses?

If you said diversified financial services organisation Thorn Group Ltd (ASX: TGA), give yourself a gold star.

Why is the Thorn Group share price rocketing?

The Thorn Group share price is soaring after the ASX share announced a special dividend payment as well as a proposed capital return and share consolidation.

The company opted to make the special dividend payment based on Thorn’s strong cash balance and the simplification of its business. According to the release, the directors consider that Thorn is presently holding funds in excess of its requirements.

The fully franked special dividend of 3 cents per share will total approximately $10.4 million. The ex-dividend date is 24 August and the special dividend will be paid on 8 September.

Thorn’s dividend reinvestment plan (DRP) won’t apply to the special dividend.

Also sending the ASX share higher today was the announcement that Thorn’s directors are considering an additional 12 cent per share return of capital, worth around $41.7 million, along with a share consolidation in Q3 FY23. That would be subject to both regulatory and shareholder approvals.

Commenting on the developments, Thorn’s CEO, Pete Lirantzis said:

We are delighted to be providing our shareholders with these returns following a three-year program to transform the company, both in a cash and operating position.

We are now a simpler and more efficient organisation well placed to grow further in the SME market with an expanded finance offering through a sophisticated technology solution.

Our balance sheet has been strengthened with the sale of assets, including Radio Rentals, and our capital position has enabled us to announce a special dividend and planned return of capital to shareholders.

How has this little known ASX share been tracking?

Over the past 12 months, the Thorn share price has gained 42%. That compares to a full-year loss of 5% posted by the All Ordinaries.

Atop the price moves, the ASX share notes that “Collectively, shareholders have already received a total return of capital of approximately $52.6 million for the last two financial years.”

The post Guess which little-known ASX share is soaring 15% on special dividend news appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Everything you need to know about the latest AGL dividend
• Guess which ASX copper share has exploded 182% this week?
• Accent share price jumps despite 59% profit drop
• Why is the PTB share price rocketing 35%?
• Everything you need to know about the latest Newcrest dividend

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.

from The Motley Fool Australia https://ift.tt/cUawyL0

The AGL Energy Limited (ASX: AGL) share price is sliding on Friday following news of the company’s financial year 2022 earnings and final dividend.

As The Motley Fool Australia reported earlier, the energy producer and retailer has offered shareholders a 10-cent unfranked dividend for the six months ended 30 June.

Right now, the AGL share price is 2.3% lower than its previous close, with stock in the S&P/ASX 200 Index (ASX: XJO) utilities giant swapping hands for $7.97 apiece.

Let’s dive into the company’s full-year earnings and all investors need to know about its latest dividend.

AGL share price falls alongside dividends

The AGL share price is suffering on Friday after the company posted a 10-cent dividend – more than 70% less than it offered at the end of financial year 2021.

The energy company revealed its statutory profit reached $860 million for the 12 months ended 30 June – up from a $2 billion loss. Though, its underlying profit slumped 58% year-on-year to come in at $225 million.

It also saw its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) slump 27% to $1.2 billion.  

On the back of such earnings, the company posted its lowest regular dividend since it listed on the ASX. That sees its full-year payout come to 26 cents, marking a 65% drop year-on-year and representing a payout ratio of 75%.

The company handed investors 75 cents in dividends in financial year 2021, including a 10-cent special dividend. That itself represented a 23.5% drop on those of financial year 2020.

However, as The Motley Fool Australia reported earlier this week, many brokers were tipping AGL to pay a single-digit final dividend for last fiscal year. Thus, it’s likely brought a positive surprise for some.

The company has also scrapped its dividend reinvestment plan (DRP) this time around, given the status of its review into its strategic direction. It intends to reinstate the DRP when circumstances allow.

AGL shares will trade ex-dividend on 1 September and its latest offering will begin to hit investors’ accounts on 27 September.

The post Everything you need to know about the latest AGL dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• AGL share price dips after 58% profit slash
• Earnings preview: Here’s which ASX shares are reporting today
• Hoping to pounce on AGL shares? Here’s what to watch when the energy giant reports this week
• Guess how much AGL has paid in dividends over the past 5 years?
• AGL share price down amid Fortescue Future Industries hydrogen hub news

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 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.

from The Motley Fool Australia https://ift.tt/qonYOat

The All Ordinaries Index (ASX: XAO) has had a fairly positive week as we head towards the weekend this Friday. Since the start of the week, the All Ords has put on a healthy 1.2% or so. But that’s nothing compared to the mind-blowing gains of one ASX copper share.

So let’s talk about the Cobre Ltd (ASX: CBS) share price. Last Friday, the Cobre share price closed at 14 cents. Today, the ASX copper share is going for 41 cents. That’s up 15.7% today, and an extraordinary 182% just since last Friday.

So what on earth is going on with this company to give its shareholders such fortune-making gains?

How has ASX copper share Cobre exploded 182% in a week?

Well, as we covered on Tuesday this week, these gains started when Cobre announced “a new significant copper intersection” at its Ngami Copper Project in Botswana. Here’s some of what Cobre chair and managing director Martin Holland said on these results at the time:

We’re delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4km.

Importantly, all the results so far indicate at the target remains open-ended to the northeast and is larger than previously anticipated.

The footprint of mineralisation now extends over 4km, which is in line with the largest known deposits in the Kalahari Copper Belt.

Building on this announcement, we again heard from the company just yesterday. This time, Cobre announced that the company had successfully had five exploration licenses in Botswana renewed for an additional two years by the Botswana Department of Mines.

Here’s some of what Holland had to say on that news:

The renewal of these exploration licenses has come at a significant time for the Company as we
commence an aggressive exploration program in Botswana.

The renewal cements the belt–scale opportunity provided by our extensive land package in the Kalahari Copper Belt, and will support an additional exploration pipeline of targets for future drill testing.

So it’s been an avalanche of good news for Cobre.

Investors are clearly very excited over this company’s future, especially now these regulatory hurdles have been cleared. So I think this ASX copper share is definitely one to watch going forward.

At the last Cobre share price, this ASX copper share has a market capitalisation of $70.73 million.

The post Guess which ASX copper share has exploded 182% this week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 50% off: Why I think this ASX All Ords share could be a sparkling buy
• This ASX lithium share is surging 45% today. What’s going on?
• 3 ASX mining shares rocketing higher today on new finds
• Cobre share price zooms 40% higher on new copper discovery
• Guess which ASX All Ords share just inked a new deal with Fortescue

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/LJKbWHM

The Accent Group Ltd (ASX: AX1) share price is climbing today following the release of the company’s full-year results for FY 2022.

At the time of writing, the footwear retailer’s shares are up 4.98% to $1.58.

Let’s take a look at what Accent reported.

Accent share price rises amid hit to bottom line

Accent delivered its FY 2022 results for the 12 months ended 26 June 2022. Here are some of the key financial highlights:

• Total sales increased 11.3% year-on-year to $1.27 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $213.6 million, down 11.8%
• Net profit after tax (NPAT) of $31.5 million, down 59.1%
• Earnings per share (EPS) of 5.81 cents, down from 14.21 cents in FY21
• Final dividend of 4 cents per share, fully franked, bringing the full-year dividend to 6.5 cents per share, down 42.2%

What happened in FY 2022?

Accent reported a mixed financial performance as it dealt with a COVID-19-impacted environment for much of FY 2022.

More than half of the group’s total network of 400 stores was shut between the months of July and October due to government-mandated lockdowns.

In addition, the Omicron variant impacted customer traffic levels and confidence. The negative impact of this disruption on sales, gross margin, and cost of doing business was significant, resulting in disappointing financial results for the year.

In FY 2022, Accent opened 139 new stores and closed 15 stores where required rent outcomes could not be resolved.

Notably, total online sales grew to $263.8 million, an increase of 25.7% on the prior year. This accounted for 24.4% of the company’s total retail sales.

What did management say?

Accent’s CEO Daniel Agostinelli had this to say about the results:

The operational disruption experienced in the FY22 year, and the associated impact to the financial results, has been well reported. In the context of the operational challenges and focus that was required to manage the day-to-day business, I am very pleased with the continued progress in executing our growth plan initiatives, and in addition to our customers and suppliers…

What’s the outlook for FY 2023?

For the first seven weeks in FY 2023, Accent advised that trading conditions have been positive due to an undisrupted retail environment as well as being supported by deliveries of new product.

Total sales are up 48.9% on the back of stores open this year that were closed last year, and new store openings. Like-for-like retail sales are up 18.9%.

Despite not providing guidance for FY 2023, Agostinelli concluded:

Management recognises that there is some uncertainty in both the economic outlook and global supply chain. We also feel we have demonstrated our ability through the COVID-19-impacted period to build a higher quality business with good growth prospects that can weather the challenges and come out stronger the other side…

Accent share price snapshot

Since the beginning of 2022, the Accent share price has fallen by 35%.

In comparison, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is down 15% for the current calendar year.

Accent commands a market capitalisation of approximately $815.51 million.

The post Accent share price jumps despite 59% profit drop appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Analysts say these top ASX dividend shares are buys
• Brokers name 2 top ASX dividend shares to buy
• I think these 2 ASX dividend shares are buys for income in August
• Leading brokers name 3 ASX shares to buy today
• Why Accent, Humm, IAG, and Webjet shares are dropping

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

from The Motley Fool Australia https://ift.tt/634eObH

The PTB Group Ltd (ASX: PTB) share price is metaphorically on cloud nine today. Immense excitement has rallied around the aviation parts and services company after agreeing to a takeover offer.

At the time of writing, shares in PTB are fetching $1.56 apiece, up 35.65% from yesterday’s closing price. For comparison, the S&P/ASX 200 Index (ASX; XJO) is up a much more modest 0.18% at 7,126 points.

So, what are the details behind the deal?

PTB share price flies after landing a fitting suitor

It appears the PTB Group proposition was too enticing for one onlooker not to make an offer. According to the release, the Brisbane-based company has entered into a scheme implementation deed with fellow aviation products and repairs business PAG Holding Corp (PAG).

The price agreed upon is $1.595 per PTB share in cash. This represents a 38.7% premium to where the PTB share price finished up on Thursday afternoon. In total, the deal would value the ASX-listed small-cap at $202.9 million.

PAG, or Precision Aviation Group, operates through 10 companies across multiple countries. Notably, the potential acquirer has operations in the United States, Canada, Australia, and Singapore. The provider of aviation servicing carries out business through 16 repair stations, with more than 60,000sqm of sales and service facilities.

Commenting on the proposal, PTB managing director and CEO Stephen Smith said:

We are proud of what the PTB team has created, and the proposed transaction is an endorsement of the quality of our company and the exceptional people that built PTB over a number of years. It also reflects the recent strong trading performance and PTB’s growth prospects.

The board of PTB Group believes that PAG would make for a suitable acquirer, one that would be likely to continue to invest in the company’s future growth.

What else?

Shareholders are expected to receive a 3 cents per share dividend, adding to the positive for the PTB share price today. Furthermore, this payment is expected to be fully franked.

Additionally, preliminary results were provided for FY22 today. Pleasingly, earnings before interest, tax, depreciation, amortisation, and foreign exchange came in above guidance, at $23.3 million. However, the audited FY22 accounts are expected to land on 26 August 2022.

If all court approvals are received, and shareholders approve of the bid, the scheme is expected to be implemented on 2 December 2022.

The PTB share price is up more than 113% over the last 12 months.

The post Why is the PTB share price rocketing 35%? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Accent share price jumps despite 59% profit drop
• Everything you need to know about the latest Newcrest dividend
• Inghams share price tumbles 8% as FY22 dividends slashed
• AGL share price dips after 58% profit slash
• Stockland share price slips as statutory profit lifts 25% in FY22

Motley Fool contributor Mitchell Lawler 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 PTB Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Dstmz1L

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is struggling from the open on Friday following a company update.

At the time of writing, the Fisher & Paykel share price is trading 6% down at $17.98 after it announced its FY23 guidance.

Fisher & Paykel expects slow down in FY23

Detailing its forecasts for the coming 12 months, the healthcare giant said that it anticipates revenue of $670 million and net profit after tax (NPAT) of $85–$95 million.

This signifies an increase in revenue compared to 1H FY20’s $570.9 yet a decline in revenue compared to the prior comparable period, being 1H FY22 at $900 million.

CEO Lewis Gradon said the company had “sold approximately ten years’ worth of hardware in two years” creating a high comparison in FY22 as well.

“This does not change the fundamentals of our business or our strategy,” he added.

“Our Hospital sales teams are still focused on changing clinical practice and helping ensure the hardware our customers have purchased is used to benefit a broader range of patients requiring respiratory support.”

Gross margin for the first half is also expected to land at 60% – 500 basis points below the company’s long-term target of 65%.

Part of the contraction in gross profit is due to a shift in sales towards the lower margin consumables segment.

However, despite challenges, it expects that H2 FY23 revenue will be higher than the first half as hospitalisation rates normalize.

“The company is now targeting constant currency operating expense growth of approximately 10%
for the year,” it added.

Never before in our history have we changed clinical practice with such a significant advantage.
Our customers already have our hardware, they already have clinical experience with its use, and
they already have access to a huge amount of clinical evidence. This gives us confidence that we
can continue to build on our proven 50-year track record and reach more patients with our
respiratory therapies.

In the past 12 months, the Fisher & Paykel share price is down 44%, and down 41% this year to date.

The post Fisher & Paykel share price slides hard following FY23 guidance update appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Accent share price jumps despite 59% profit drop
• Why is the PTB share price rocketing 35%?
• Everything you need to know about the latest Newcrest dividend
• Inghams share price tumbles 8% as FY22 dividends slashed
• AGL share price dips after 58% profit slash

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.

from The Motley Fool Australia https://ift.tt/wIpX9U7