The DroneShield Ltd (ASX: DRO) share price is down 19.5% today after the drone technology company reported its half-year FY22 results.

DroneShield develops and sells hardware and software for the detection and destruction of drones. Its customers include government and military, airports, and commercial venues in more than 120 countries.

The company released its earnings after market close yesterday, when its shares finished at 20.5 cents.

The DroneShield share price opened this morning at 18.5 cents, down 9.75%. The shares continued on a downward trajectory to reach a low of 16.5 cents at the final bell this afternoon.

Let’s take a look at the company’s report.

DroneShield share price tumbles after 45% revenue decline

The key highlights of the report for the six months to 30 June 2022 are:

• Revenue down 45% on the prior corresponding period (pcp) of 1H FY21 to $3.67 million
• Loss from continuing activities after tax up 990% to $4.93 million
• Cash and cash equivalents down 51% to $6.59 million

What else happened in 1H FY22?

DroneShield says it has a $350 million global sales pipeline, including $100 million in projects from here until the end of 2022. It reckons the total addressable counter-drone market is worth US$10 billion.

A highlight of 1H FY22 was winning a $3.8 million contract with the Australian defence department. It expects a contract extension upon completion of this initial contract in mid-2023.

It is also “successfully progressing” the Defence Innovation Hub.

The company says there has been a “continued rapid increase in the US business, including signing a framework agreement with the State of Texas, receiving a counterdrone contract for protection of IRONMAN Texas, and DroneShield’s initial GSA order“.

DroneShield said it invested in “substantial inventory acquisition to mitigate supply chain delay risks” in 1H FY22. It has approximately $15 million of inventory on hand as at 30 June 2022.

The company also achieved UK MOD SAPIENT compliance in 1H FY22. This means DroneShield systems are now compatible with military standards in the United Kingdom.

What did management say?

In this half-year report, DroneShield said there was a “highly favourable macro environment” today.

This is “due to increased macroeconomic uncertainties, [the] war in Ukraine demonstrating extensive use of small drones by both sides, and rapidly increasing defence budgets globally including by the Australian Government”.

What’s next?

Earlier this month, DroneShield announced it had received its biggest government grant to date. The $2 million grant will be used for the research and development of its drone technology.

As my Fool colleague Raymond reported, DroneShield says its artificial intelligence, electronic warfare, and adjacent technology services are “increasingly in demand” amid growing geopolitical tensions.

In its half-year report, DroneShield said it is continuing to move into the software-as-a-service (SaaS) space. It is using subscription pricing models on a range of products. It is also advancing its software-related work, especially in defence signal processing.

The company said: “Over time, the software/SaaS business is expected to account for the majority of the Group’s earnings.”

DroneShield share price snapshot

DroneShield shares are down 5.7% in the year to date. Over the past 12 months, the shares have lost 19.5%. That puts the DroneShield share price in a position no better and no worse than it was one year ago.

The company has a market capitalisation of $88.7 million.

The post Droneshield share price plunges 19% on revenue slump 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

• DroneShield share price lifts 6% on record government grant

Motley Fool contributor Bronwyn Allen 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 DroneShield Ltd. The Motley Fool Australia has recommended DroneShield Ltd. 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/Q9WD5Y6

Now that reporting season is over, investors can consider the updates from S&P/ASX 200 Index (ASX: XJO) bank shares and think about how the rest of 2022 and FY23 might go.

It’s currently a period of rapid transition as households, investors and businesses get used to higher interest rates.

Banks have seen a fair bit of volatility over the past three months.

Names like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) all experienced a sell-off during June. However, since then, they have recovered quite a bit of that lost ground.

What’s going on with interest rates?

There are competing effects of rising interest rates.

On the one hand, higher central bank interest rates can be instantly passed on to borrowers. This gives banks a quick boost in profitability and the net interest margin (NIM). Particularly if they don’t pass on the same increase to savers.

However, there are questions about what this might do to households over the long term. Will the large increase in interest rates mean that heavily indebted households won’t be able to handle it? This will take time to play out there.

The Reserve Bank of Australia (RBA) has been increasing the interest rate at each of the last few monthly meetings. Another increase is expected in September.

The profitability of their current loan books is an important factor for the ASX 200 bank shares. But another element of their performance is how much lending growth they achieve.

Market share concerns

According gto The Age reporting on research by Macquarie Research and APRA, ANZ, CBA and Westpac all lost market share of the all-important housing lending market over the 12 months to July 2022. Only NAB managed to grow its market share over the year to July. It did this with an increase of less than 20 basis points (0.2%).

Smaller players are wanting to muscle in on the big four. It’s not as though they’re going to overtake the big four ASX 200 bank shares, but they can take market share, reduce the big banks’ growth, and put pressure on the margins due to the competition.

Reporting by The Australian highlighted comments by non-bank lender Liberty Financial Group Ltd (ASX: LFG) CEO James Boyle, who said:

With interest rates going up and cost of living pressures continuing, customers are concerned about borrowing to buy homes in an environment where they’re not sure where the interest rates are going to land.

They’re not sure how much inflation is going to eat into their disposable income and they’re not really sure exactly where house prices are going to land either. So I think there’s a bit of a softening, reflecting those uncertainties in home lending.

The newspaper also noted that S&P Global Ratings thinks higher inflation and interest rates will mean tighter lending standards for banks and that “this will allow Liberty Financial to continue to grow in its niche businesses of catering to borrowers that banks typically do not service”.

Foolish takeaway

ASX 200 bank shares and analysts alike think that higher central bank interest rates will mean an improved margin for banks, and analysts are generally expecting an improvement in profit in FY23.

For now, bank investors will need to factor in the RBA’s next move in September and decide what this will mean for their short-term and longer-term profit outlook.

The post What’s the outlook for ASX 200 bank shares in September? 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

• Will this build value for NAB shareholders or alienate the bank’s customers?
• AMP share price lifts amid Westpac deal rumours
• Why this analyst ranks ANZ shares at the bottom of the big-four-bank pile
• What’s the outlook for the Westpac share price in September?
• What is the highest CBA shares have ever been?

Motley Fool contributor Tristan Harrison 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 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.

from The Motley Fool Australia https://ift.tt/0O97c5w

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three ASX shares brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Bank of Queensland Ltd (ASX: BOQ)

According to a note out of UBS, its analysts have initiated coverage on this regional bank’s shares with a buy rating and $8.00 price target. The broker made the move on the belief that Bank of Queensland’s shares offer the most value in the sector at present. It highlights that the bank trades on low multiples and at a large discount to the rest of the big banks. The Bank of Queensland share price is trading at $7.03 today.

Healius Ltd (ASX: HLS)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this healthcare company’s shares to $4.50. This follows the release of a solid result for FY 2022. And while the broker notes that COVID uncertainty continues to limit quantitative guidance, Morgans remains positive on its outlook. It believes well managed costs, ongoing efficiencies and growth initiatives, some level of COVID testing, and a backlog in diagnosis and surgery will lay the groundwork for solid growth. The Healius share price is fetching $3.60 this afternoon.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Macquarie have retained their outperform rating and lifted their price target on this fashion jewellery retailer’s shares to $27.70. This follows the release of a full year result that came in ahead of Macquarie’s expectations. Its analysts remain positive on the future, particularly in the current environment. The broker feels that Lovisa’s low price point jewellery will perform well in an economic downturn. The Lovisa share price is trading at $22.79 on Wednesday.

The post Top brokers name 3 ASX shares to buy today 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

• Here’s why analysts have slapped buy ratings on these ASX shares
• Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher
• Is the Bank of Queensland share price undervalued compared to other ASX banks?
• Healius share price climbs as profit doubles in FY22
• 5 things to watch on the ASX 200 on Tuesday

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 Lovisa Holdings Ltd. 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/CrUIHDT

The S&P/ASX 200 Index (ASX: XJO) is once again having a red kind of day so far this Wednesday. Although not nearly as brutal as Monday’s falls, the ASX 200 has lost a mild 0.23% so far today to just under 6,990 points at the time of writing.

But rather than trying to figure all of that out, let’s instead examine the ASX 200 shares presently making the top of the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Wednesday

AMP Ltd (ASX: AMP)

Let’s start with ASX 200 financial services company AMP. So far today, a notable 19.61 million AMP shares have traded hands on the ASX. There’s been no fresh news out of AMP today, save for a routine share buyback notice.

But the AMP share price has put on a healthy 3.13% so far this Wednesday to $1.155 a share. Perhaps yesterday’s rumours that AMP could be circling the wealth management arm of Westpac Banking Corp (ASX: WBC) could be playing into these gains and, by extension, AMP’s trading volume.

Pilbara Minerals Ltd (ASX :PLS)

Next up we have the ASX 200 lithium share Pilbara Minerals, coming in with a sizeable 21.61 million shares traded thus far today. There’s been no new news out of Pilbara today.

But the company is enjoying some pleasing share price gains, in contrast to the overall ASX 200. At present Pilbara is trading at $3.675 a share, up 2.65% so far this Wednesday. This gain is probably the cause of the elevated trading volumes we are seeing.

Paladin Energy Ltd (ASX: PDN)

Finally this Wednesday, we have ASX 200 uranium share Paladin Energy. As it currently stands, a hefty 22.26 million Paladin shares have changed hands on the markets today.

Continuing with the outsized moves upward we saw from this company yesterday, Paladin shares have put on another 3.68% to 84.5 cents a share.

This is the likely source of the high trading volumes we are witnessing. As we covered yesterday, these gains could be connected to some positive developments for uranium that we’ve recently seen.

The post Here are the 3 most heavily traded ASX 200 shares on Wednesday 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

• Could the Pilbara Minerals share price really offer more than 50% upside in FY23?
• AMP share price lifts amid Westpac deal rumours
• Here are the top 10 ASX 200 shares today
• Could this new piece of legislation be a boost for ASX lithium shares?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 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/SsOntAc

Searching for an S&P/ASX 200 Index (ASX: XJO) share posting soaring dividends this earnings season? Look no further than under-the-radar ASX 200 gold share Gold Road Resources Ltd (ASX: GOR).

The stock just declared its latest interim dividend and, to the likely surprise of onlookers, it’s worth double the payout offered by the company this time last year.

The Gold Road share price is lifting 1.39% right now to trade at $1.27. For context, the ASX 200 is down 0.25% at the time of writing, leaving the share outperforming.

So, without further ado, take a closer look at the latest dividend from the $1.3 billion gold producer.

ASX 200 gold share doubles interim dividend

The ASX 200 gold giant dropped its earnings for the six months ended 30 June yesterday, and they included a welcome offering for investors.

The company declared a 1-cent interim dividend – representing a 100% year-on-year increase.

And making it even more tempting, the payout is fully franked. That means it could bring additional benefits to investors at tax time.

News of the dividend was released alongside word of the company’s surging half-year profit.

Gold Road posted a $39.9 million net profit after tax (NPAT) for the first half – 108.9% higher than that of the prior corresponding period.

Its revenue also lifted 51.6% to $196.5 million. While its earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 67.8% to $100 million.

Shares in the ASX 200 company will trade ex-dividend on Monday. The payment will begin to hit investors’ accounts from 4 October.

On top of its first-half earnings, the company also revealed its optimistic outlook. It expects to reach its full-year guidance.

That would see its 50%-owned Gruyere mine producing between 300,000 ounces and 340,000 ounces of gold at an all-in sustaining cost of between $1,270 an ounce and $1,470 an ounce over the course of 2022.  

The post Guess which ASX 200 share just doubled its latest 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(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 200 company bought over $65 million of De Grey shares in August
• Gold Road share price lifts as half-year profit doubles

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/kXzvyxh

The Wesfarmers Ltd (ASX: WES) share price is backtracking on Wednesday afternoon.

At the time of writing, the conglomerate’s shares are down 1.7% to $46.89.

Why are Wesfarmers shares in reverse today? 

On the back of the company’s full-year results, investors are selling Wesfarmers shares as they go ex-dividend today.

The ex-dividend date is particularly important as it determines which shareholders will receive the company’s latest dividend.

If you held Wesfarmers shares at yesterday’s market close, you will be eligible for the final dividend.

However, if you didn’t own them and bought them today, the dividend will go to the seller.

What does this mean for Wesfarmers shareholders?

If you’ve locked in the Wesfarmers dividend, you’ll receive a payment of $1.00 per share on 6 October. The dividend is fully franked, which means you’ll also get some bonus tax credit to put towards your next tax bill.

Notwithstanding the special dividend paid in December 2021, this is the biggest dividend that will be paid out to shareholders since 2019. In case you were wondering, the final dividend declared that year was $1.20 per share.

Are Wesfarmers shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the Wesfarmers share price.

As reported by ANZ Share Investing, the analyst team at Goldman Sachs raised its price target by 8.4% to $38.90 per Wesfarmers share. Based on the current price, this implies a downside of 17%.

On the other hand, Morgans slashed its price target by 4.8% to $55.60 per share. This represents an upside of 18.5% from where Wesfarmers trades today.

Wesfarmers share price snapshot

Looking at the past 12 months, the Wesfarmers share price has fallen 22% on the back of difficult trading conditions.

In contrast, the S&P/ASX 200 Consumer Staples (ASX: XSJ) sector has dipped by around 2% over the same timeframe.

Wesfarmers shares reached a 52-week low of $40.03 on 17 June as volatility hit global markets. Since then, it has climbed slightly of late, up 17%.

Wesfarmers commands a market capitalisation of approximately $54.08 billion and has a dividend yield of 3.59%.

The post Why is the Wesfarmers share price sliding lower on Wednesday? 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

• 5 things to watch on the ASX 200 on Wednesday
• Hoping to bag the next Wesfarmers dividend? Here’s what you need to do
• 6 ASX shares Morgans would buy right now
• Everything you need to know about the latest Wesfarmers dividend
• Wesfarmers share price lifts as earnings beat brokers’ consensus

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 positions in and has recommended Goldman Sachs. The Motley Fool Australia has positions in and has recommended Wesfarmers 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/JP4oYOw

The Novonix Ltd (ASX: NVX) share price is taking off after the company released its financial year 2022 report this afternoon.

The S&P/ASX 200 Index (ASX: XJO) battery materials and technology stock opened 1.7% lower at $2.29 on Wednesday before settling to trade relatively flat for much of the morning.

But all that changed after the release of the company’s results. The Novonix share price is currently swapping hands for $2.39, 2.58% higher than its previous close.

Novonix share price lifts on annual report

Here are the key takeaways from the ASX 200 favourite’s full-year results:

• Revenue came in at $8.4 million – a 61% increase on that of the prior corresponding period (pcp)
• Total loss for the year nearly quadrupled to reach $71.4 million – down from the pcp’s $18 million loss
• Earnings per share (EPS) slumped to a 15.4 cent loss
• Cash flows from operating activities came to a $40.3 million outflow – down from an $8.2 million outflow
• Cash and equivalents increased 51.5% to $207 million at the end of FY22

Looking at the company’s major segments, its battery technology business outperformed. It brought in $10 million of income in FY22 and posted an $8.7 million loss. Its revenue grew over every quarter of the financial year just been.

Meanwhile, the company’s battery materials segment saw $531,850 of income and posted a $28.5 million loss.

Novonix noted its earnings for FY22 were in line with management’s expectations.

What else happened in FY22?

The company increased its investment in the development of cathode synthesis technology and continued working on battery pack systems to support microgrids in FY22.

Meanwhile, it made progress toward expanding its production capacity for battery-grade synthetic graphite material.  

US energy giant Phillips 66 (NYSE: PSX) made a strategic investment in the company in August 2021, forking out around $203 million for a 16% stake. The Novonix share price rocketed 15.5% on the back of the news.

Finally, the company was admitted to the ASX 200 in December and began trading on the Nasdaq Stock Market in February.

What’s next?

The company didn’t provide any new earnings guidance today. Though, it did outline its growth strategy.

Novonix is focusing on scaling its production capacity of synthetic graphite. It’s on track to reach a capacity of 10,000 tonnes a year in 2023 and plans to expand that to 150,000 tonnes by 2030.

It will also continue working to develop sustainable technologies, pursue strategic partnerships with international battery companies, and grow its intellectual property pipeline.

It believes doing so will maintain its technology leadership throughout the electric vehicle battery and energy storage supply chain.

Novonix share price snapshot

This afternoon’s turnaround hasn’t been enough to boost the Novonix share price into the longer-term green.

The stock is currently trading for 77% less than it was at the start of 2022. It has also dumped 47% since this time last year.

For comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Novonix share price lifts despite full-year loss deepening to $71 million 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

• Here are the top 10 ASX 200 shares today
• Why is the Novonix share price tumbling 6% on Monday?
• Why is the Novonix share price getting hammered on Wednesday?
• How close is ASX tech share Novonix to becoming profitable?
• Why did the Novonix share price nosedive 6% today?

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/QnAdCye

The Splitit Ltd (ASX: SPT) share price is suffering today amid the release of the company’s half-year results for FY22.

Splitit shares are trading for 17.8 cents at the time of writing. Shortly after open on Wednesday, however, shares in the buy now, pay later provider fell 8% from the previous closing price of 18 cents.

Let’s go over the report highlights.

What did Splitit report?

• Merchant sales volume $US194.8 million (AU$283.40 million), up 12.92% year over year (yoy)
• Net transaction margin up 1.3% from 0.3% in FY21
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 34.99% yoy to a loss of US$8.79 million (AU$12.79 million)
• Net loss after tax down 35% yoy to US$12.25 million (AU$17.82 million)

Some of the year’s highlights included a new growth strategy for the company’s instalments-as-a-service tech, with a greater emphasis on sourcing new partners.

Its partnership program reportedly built strong momentum in 2HFY22, with an enhanced partnership with BlueSnap and forming a new partnership with Everyware.

Nandan Sheth joined the company as the new Splitit CEO and managing director. While Dan Charron joined as a non-executive director.

What else happened in FY22?

The company also announced a placement of 64.4 million new shares at $0.175 per share, for a total of around AU$10.5 million. Splitit directors and c-level managers have agreed to subscribe a further AU$775,000.

The placement also allows investors to purchase stock options, with one free-attaching option offered for every two new shares purchased. Around 32.2 million options will be offered with an exercise price of AU 20 cents each and an expiry date of 30 months from the date of issue.

Funds will be used to drive the company’s growth, expand its white-label instalments-as-a-service solution, and develop its buy now, pay later credit facility for merchants.

What did management say?

Splitit CEO and managing director Nandan Sheth said:

Splitit’s rejuvenated growth strategy positions it to power the next generation of BNPL infrastructure for the existing payments ecosystem. Under this strategy, Splitit has already made good progress accelerating its pathway to profitability in the half year, including net transaction margin growth to 1.25% and a 22% reduction YoY in operating expenditure.

What’s next?

The company said it is eyeing transaction margin and cost efficiencies to help it reach profitability. This will be helped by revising its $150 million receivables contract with Goldman Sachs, which is expected to save the company an additional US$5.3 million (AU$7.71 million) over two years.

Splitit will continue onboarding major global merchants and work with additional major payment providers.

The end goal of this strategy is to expand its white-label instalments-as-a-service offering across a broad and growing merchant base.

Splitit share price snapshot

The Splitit Payments share price is down 29% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 7.8% over the same period.

The company’s market capitalisation is approximately $83.68 million.

The post Splitit share price down amid $17 million loss 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

• Why is the Splitit share price frozen on Friday?
• 3 ASX tech shares surging more than 10% today
• Why is the Sezzle share price surging 8% on Wednesday?

Motley Fool contributor Matthew Farley 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 Goldman Sachs. 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/Hk8Bv6L

It’s the final day of ASX reporting season and as per usual, we’ve seen a flock of ASX small-cap shares wait until the last day to drop results.

Market sentiment has been mixed today, with the S&P/ASX 200 Index (ASX: XJO) printing a 0.22% loss at the time of writing.

But the S&P/ASX All Technology Index (ASX: XTX) has found its groove, jumping 1.43% in afternoon trade.

Here are three small-cap ASX tech shares making moves today after reporting full-year FY22 results.

Novatti Group Ltd (ASX: NOV)

The Novatti share price is holding its ground today as investors digest the payment company’s FY22 results.

At the time of writing, Novatti shares are trading at yesterday’s closing price of 20 cents apiece after earlier recording a 5% jump to 21 cents a share around midday. This gives the company a current market capitalisation of $68 million.

In FY22, Novatti generated record revenue of $32.6 million, almost double the prior year. This came on the back of four consecutive record quarters of revenue.

During the year, Novatti completed an $8 million acquisition of ATX, a Malaysian fintech company.

It also acquired a 19.9% strategic stake in accounting software company Reckon Limited (ASX: RKN).

These acquisitions and associated capital raisings meant that the company’s share count increased by 38% in FY22.

Across the year, Novatti burned through $13.0 million of operating cash flows and delivered an expanded net loss of $16.6 million.

Ansarada Group Ltd (ASX: AND)

Unlike Novatti, the Ansarada share price is finding itself under pressure today, sliding 6% at the time of writing to $1.72.

The M&A software company handed in its FY22 results this morning, headlined by a 44% jump in revenue growth. 

However, some of this growth was acquisitive after Ansarada completed the acquisition of TriLine GRC in late October 2021.

The company’s customer count now stands at 5,251, up 52% from 3,997 at the end of FY21.

Ansarada remains debt free and generated $12.6 million of adjusted cash flow from operations in FY22, up 38% from the prior year.

Despite the positive cash flow, Ansarada delivered a net loss of $8.6 million as the company continues to scale.

The company noted that M&A volumes peaked mid-year and have been subdued since, impacting the start of FY23. It expects deal volumes to recover in the second half of FY23.

Credit Clear Ltd (ASX: CCR)

Last but not least, Credit Clear is another small-cap ASX tech share reporting results today.

At the time of writing, the Credit Clear share price has climbed 2.53% to 40.5 cents. This bumps up the company’s market cap to $119 million.

On the surface, the company delivered rapid top-line growth in FY22, with revenue up 95% to $21.4 million. However, the majority of this growth was acquisitive. 

In February, Credit Clear finalised the $46 million acquisition of ARMA, a provider of debt recovery solutions in Australia and New Zealand. At the time, management said ARMA was slated to increase Credit Clear’s revenue by 140% on a pro-forma FY21 basis.

The company ended the financial year with 696 active clients and 831,000 active customer accounts. Both of these metrics more than doubled in FY22.

For the full year, Credit Clear reported net cash operating outflows of $5.9 million. Its net loss expanded from $8.0 million in the prior year to $12.6 million in FY22.

The company ended the year with a revenue run rate of $37.4 million. It noted it was operationally profitable in May and June, which has continued into the first quarter of FY23.

The post 3 ASX tech shares on the move following earnings results 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

• Top ASX shares to buy in August 2022

Motley Fool contributor Cathryn Goh 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 Ansarada Group Limited. The Motley Fool Australia has positions in and has recommended Ansarada 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/bjnzZgv

The Nickel Industries Ltd (ASX: NIC) share price is in the red on Wednesday after the miner reported its half-year FY22 earnings.

The Nickel Industries share price is down 3.41% to 99 cents at the time of writing.

Let’s take a look at the miner’s report.

Nickel Industries share price slips despite record results

The company (formerly known as Nickel Mines) said it had delivered a record half-year result due to its rapid-expanding mining operations.

Nickel Industries has an 80% interest in three operational projects — Hengjaya Nickel, Ranger Nickel, and Angel Nickel.

It is in the process of buying two more projects, namely 70% of Oracle Nickel and 100% of Siduarsi Nickel-Cobalt.

The key metrics in the 1H FY22 report are as follows:

• Sales revenue: Up 78% on the prior corresponding period (pcp) of 1H FY21 to US$515 million
• Gross profit: Up 73% pcp to US$161.2 million
• Operating profit: Up 58% pcp to US$140.1 million
• Profit after tax: Up 43% pcp to US$118.4 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA): Up 37% pcp to $126.9 million
• 26,733 tonnes of nickel metal produced from 195,706 tonnes of nickel pig iron (NPI)
• 25,906 tonnes of nickel metal equivalent sold
• Net assets: $1,702.3 million compared to $1,329.9 million as at 31 December
• Interim dividend of 2 AU cents per share, payable on 14 September

What else happened in 1H FY22?

The big thing going on at Nickel Industries is its acquisition of a 70% interest in the Oracle Nickel project in Central Sulawesi, Indonesia for US$525 million.

It acquired the first 30% during 1H FY22, funded through a US$212M capital raising. This included a $106 million share placement to the owner, Shanghai Decent, and another $106 million institutional placement at A$1.37 per share.

The company also offered a share purchase plan for Australian and New Zealand shareholders to raise A$18 million. It was well oversubscribed at A$56 million but the company withdrew the offer in the best interests of shareholders due to market volatility in March.

The Nickel Industries share price declined by 18% during March to close at $1.26 on 31 March.

The company also made US$81.2M in construction payments ahead of schedule to expedite construction and enable early commissioning of Oracle. This payment forms part of the $525 million overall purchase.

Nickel Industries now expects the first rotary kiln-electric furnace (RKEF) smelting line at Oracle Nickel to commence commissioning in October. A second one should be ready to go in November. This is well ahead of the contracted project delivery date of February 2023.

Nickel Industries noted a “material profit contribution” from the Hengjaya Mine, also in Central Sulawesi, Indonesia, in 1H FY22. EBITDA from this project was up 140% to $27.6 million. This follows “significant investment in mine expansion initiatives over the last 2 years”.

Nickel Industries stated:

These improvement and expansion initiatives were undertaken to help unlock the full strategic value of the Hengjaya Mine’s large limonite and saprolite resources and as a result, Hengjaya Mine is expected to make a material, long-term financial contribution to the overall Group financial performance.

The Angel project became operational during the half, and commercial sales are now underway.

Also during 1H FY22, the company signed a binding definitive agreement for the staged 100% acquisition of the Siduarsi Nickel-Cobalt project in Papua province, Indonesia.

Lastly, the company underwent a name change following shareholder approval on 31 May.

Regarding the name change, the company stated:

While the Company’s origins are that of an explorer and miner of nickel ore, in recent years the Company has transitioned into a globally significant downstream processor of nickel metal and this change of name is considered to reflect the underlying nature of the Company’s current core operations.

With the Company’s Angel Nickel project now in the late stages of its commissioning phase and
the Oracle Nickel project in the advanced stages of its construction, the Company’s revenue and earnings base will increasingly be derived from activities unrelated to mining, but rather driven from a growing suite of downstream “industrial-style” processing assets.

What did management say?

In its presentation, the company said its record performance came down to “strong and consistent” RKEF production from the Hengjaya and Ranger projects, the commissioning and ramp-up of the Angel project, higher realised nickel pig iron prices, and strong EBITDA margins (US$6,122/t).

The company said this was “despite cost pressures from rising nickel ore, coal and electricity prices”.

It stated: “The Oracle Nickel project, like the Angel Nickel project, is expected to transform the Company’s nickel production profile, with a nameplate capacity in excess of 100,000 tonnes (of nickel in NPI).”

What’s next?

This month, Nickel Industries issued US$225 million of senior secured notes “leaving the Company well positioned to complete the acquisition and ramp-up of Oracle Nickel”.

The notes have an interest rate of 10% and mature on 23 August 2025.

Nickel Industries share price snapshot

Today’s share price slide might be partly related to the nickel price dropping 1.24% overnight to US$21,273 per tonne.

According to Trading Economics data, this extends the commodity’s decline in value over the past month by 9.56%.

However year over year, the nickel price is still 8.6% higher.

The Nickel Industries share price is down 33% in the year to date and down 2% over the past 12 months.

The post Nickel Industries share price dips despite 40% profit surge 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

• 3 ASX tech shares on the move following earnings results
• Why is the Qantas share price beating the ASX 200 on Wednesday?
• Why is the Santos share price sliding lower today?
• Why is the Woolworths share price in the red on Wednesday?
• Can the Bitcoin price reach $100,000?

Motley Fool contributor Bronwyn Allen 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/bwJSgBx