The People Infrastructure Ltd (ASX: PPE) share price has faded from its morning gains after the company released its FY21 full-year results.

Shares in the staffing business rallied 8.85% within the first few minutes of trade to a high of $4.55.

At the time of writing, the People Infrastructure share price is up 3.11% to $4.31.

People Infrastructure share price rallies on strong growth in FY21

People Infrastructure grew considerably in FY21, both organically and via acquisitions. Some key highlights include:

• Revenue rose 19% to $444 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 33% to $38 million
• Underlying net profit after tax and amortisation lifted 37% to $25 million
• Final fully franked dividend of 6 cents per share

What happened to People Infrastructure in FY21?

The People Infrastructure share price has been a steady performer in 2021, up 20% year-to-date.

The company completed a number of acquisitions throughout the year to drive greater staffing sector diversification and accretive growth. Companies acquired in FY21 include:

• Ecareer & Illuminate (IT) in December 2020
• Swingshift (Healthcare) in March
• Techforce (Industrial) and Vision Surveys (Op services) in June

All divisions, both organic and acquired, made strong contributions to growth. The company said that in the final quarter of FY21, all divisions were either at or exceeding record profit contribution.

In relation to recent COVID-related restrictions and lockdowns, the company said they impact a portion of clients and in different ways. Some clients have seen increased demand for new services while other clients have seen business activity restricted. Overall, the company said the recent impact is far smaller than the initial wave of COVID-19.

Management commentary

People Infrastructure CEO Declan Sherman commented on the record results, saying:

People Infrastructure confronted a number of challenges in FY21 due to the impact of COVID-19. The business has shown tremendous resilience to bounce back over the last 12 months. As a result, we are pleased to announce a significant increase in revenue and earnings.

The business demonstrated a steady increase in billed hours in the second half versus the first half and a significant increase in permanent billings in the second half versus the first half. This was consistent across all divisions and as a result the company is starting FY22 in a very strong position.

Despite the near-term volatility and impact of COVID-19, Sherman remains confident in the company’s ability to navigate through uncertainty.

Any short term impacts on our clients are significantly mitigated by our regional and product diversity.

Importantly, the outlook for the employment market continues to be positive in the sectors that we service and we look forward to continuing to work with clients to manage their problems around staffing shortages.

What’s next for People Infrastructure?

Looking ahead, People Infrastructure flagged that there may be some short term volatility due to NSW and Victorian lockdowns. But this could also be mitigated by its regional and industry diversification.

Management said that the company would continue to be on the lookout for acquisition opportunities in staffing and managed services to drive geographic spread and/or further expand its service offering.

The People Infrastructure share price will go ex-dividend on Friday, 3 September for a 6 cents per share dividend.

The post People Infrastructure (ASX:PPE) share price struggling to hold gains following record FY21 result appeared first on The Motley Fool Australia.

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• St Barbara (ASX:SBM) share price falls 3% on $177 million loss
• Tyro (ASX:TYR) share price lifting off on record FY21 results
• Woolworths (ASX:WOW) share price gains on 23% profit surge

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Openpay Group Ltd (ASX: OPY) share price is slumping lower on Thursday afternoon after the buy now, pay later (BNPL) group’s full-year results.

Openpay share price slumps as transaction margins narrow

Shares in the BNPL group are down more than 5% at the time of writing after releasing its results for the year ended 30 June 2021 (FY21). Some of the key takeaways from this morning include:

• Active merchants up 77% on the prior corresponding period (pcp) to 3,800
• Active customers up 69% on pcp to 541,000
• Total transaction value (TTV) up 77% on pcp to $339 million
• Revenue up 44% on pcp to $26 million
• Net transaction loss (NTL) flat at 2.3% of TTV
• Net transaction margin (NTM) down 190 basis points to 0.6%

However, the headline growth figures weren’t enough to stop the Openpay share price from slumping lower today.

What happened in FY21 for Openpay?

The BNPL group described FY21 as a “transformative” year. Openpay reported strong TTV growth thanks to increasing active merchant numbers. Openpay also announced the acquisition of UK-based Payment Assist which is expected to close in 1H FY22.

The Aussie company ventured into the $5.5 trillion US BNPL market via partnerships with Worldpay from FIS and ezyVet. The group is preparing to start transactions in the United States in early October 2021.

The Aussie BNPL group reported strong performance across Australia and New Zealand with growth in active merchants, customers and plans during the year.

However, the Openpay share price has been under pressure and remains down 69% in the past 12 months.

What did management say?

Openpay Managing Director and CEO, Michael Eidel, commented:

FY21 was a transformative year for Openpay, with many significant strategic and operational achievements that set us up to achieve our objectives of sustainable growth and mid-term profitability.

We have succesffuly transformed the business to become a truly diversified, global payments fintech, well beyond our great Business to Consumer (B2C) BNPL offering and origins, and precisly as described in our long-term vision and strategy.

What’s next for Openpay and its share price?

The Openpay share price has been smashed despite headline growth figures as its transaction margin narrowed sharply in FY21. The Aussie BNPL did not provide FY22 guidance in today’s results update.

Shares in the BNPL group are down 40.9% in 2021 with a market capitalisation of $148.3 million.

The post Openpay (ASX:OPY) share price slumps as margins narrow appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Bruce Jackson.

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) appears to have run out of steam and is tumbling lower. The benchmark index is currently down 0.5% to 7,496.2 points.

Here’s what is happening on the ASX 200 today:

A2 Milk disappoints again

The A2 Milk Company Ltd (ASX: A2M) share price is sinking on Thursday after it delivered a full year result at the very low end of its downgraded (four times) guidance range. The infant formula company reported a 30.3% decline in revenue to NZ$1.21 billion and a 77.6% fall in EBITDA to NZ$123 million. Management also ruled out a capital return after teasing one earlier this year and warned that FY 2022 would be challenging.

Appen sinks on half year results

The Appen Ltd (ASX: APX) share price is crashing lower after the release of its half year results. For the first half of FY 2021, Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. While the latter was a touch ahead of the US$27million analysts at Citi were expecting, the broker noted that its estimate was ~20% lower than consensus estimates. Not even news that the company is acquiring location data provider Quadrant has saved its shares.

Flight Centre higher despite loss

The Flight Centre Travel Group Ltd (ASX: FLT) share price is pushing higher today despite recording another large loss in FY 2021. For the 12 months ended 30 June, the travel agent reported a 74.2% decline in total transaction value (TTV) to $3,945 million and an underlying loss after tax of $364 million. However, management’s belief that it can reach profitability in FY 2022 appears to have boosted its shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Blackmores Limited (ASX: BKL) share price with an 8% gain. This follows the release of the health supplements company’s full year results. The worst performer has been the Appen share price with a 19% decline following its half year results release.

The post ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Blackmores Limited. The Motley Fool Australia has recommended A2 Milk and Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is slipping today following the release of the company’s financial year 2021 (FY21) results.

Right now, the St Barbara share price is trading at $1.54, 2.53% lower than yesterday’s close.

St Barbara share price slumps on 26% drop in profits

Here are the key points from the gold mining company’s performance through FY21:

• Statutory loss of $177 million, down from FY20’s $128 million profit.
• Revenue of $740 million, down 14% on that of FY20.
• Underlying profit of $81 million, 26% less than that of FY20.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $63 million, down from EBITDA of $338 million in FY20.
• $227 million cash flow from operating activities, down 19%.
• 2 cent final dividend.

St Barbara’s drop in revenue was a result of lower production at its Leonora and Simberi projects.

Its Atlantic operations experienced a $248 million impairment loss.

Over FY21, St Barbara’s total production dropped to 327,662 ounces of gold, that’s down from FY20’s production of 381,887 ounces.

The company’s gold sales amounted to 332,786 ounces, down from FY20’s 381,105 ounces.

St Barbara’s realised average gold price was $2,215 per ounce, 2.2% higher than that of FY20.

The company’s all-in sustaining cost (AISC) was $1,616 per ounce, 18% less than the previous financial year.

The miner ended the period with $133.3 million in cash and $109.2 million of interest-bearing liabilities.

What happened in FY21 for St Barbara?

Here’s some of what impacted the St Barbara share price in FY21:

Production from Leonora was lower following difficulties with ore delivery in the September quarter. Additionally, a seismic event at Leonora’s Gwalia underground mine caused a fall in ground which ultimately resulted in lower production for FY21.

The Leonora operations brought in $329 million of sales revenue in FY20, down from $355 million in FY20. Gold sales of 150,797 ounces were attributable to the mine.

Production at St Barbara’s Simberi operation was suspended in the final quarter after a fatality at the site. On 21 May, a truck driver at Simberi was killed when their truck travelled over a safety berm and fell around 40 metres.

St Barbara is providing assistance to the employee’s family and counselling support for the Simberi team.

Simberi brought in $204 million of sales revenue, down from $238 million in FY20. The operation saw 82,013,000 ounces of gold sold.

Finally, total gold sales revenue from St Barbara’s Atlantic operations was $205 million from 99,976 ounces.

St Barbara also released increased ore reserves and mineral resource statements this morning.

The company stated its ore reserves increased by around 4% to 6.2 million ounces of contained gold, net after depletion. Its mineral resources increased by around 13% to 13.1 million ounces of contained gold, net after depletion.

Resource extension drilling resulted in an increase to Gwalia’s mineral resources and ore reserves, while a review of material type models resulted in an increase in Simberi’s reserves.

What did management say?

St Barbara’s managing director and CEO Craig Jetson commented on some of the news:

Today St Barbara announces increases in both our group ore reserves and mineral resources as we focus on ensuring mine lives are extended beyond the next 10 years at each of our three operations.

What’s next for St Barbara?

Investors will be keeping an eye on the St Barbara share price moving forward after the company provided some guidance for FY22.

St Barbara forecasts its FY22 gold production will be between 305,000 and 355,000 ounces at an AISC of between $1,710 and $1,860 per ounce.

That guidance includes the latest mine plan at the Atlantic operations, which forecast lower-than-expected ore grades. It also includes the disruption to production at the Simberi operations and 10,000 ounces of production at Leonora operations from ore purchased from Linden Gold Alliance.

As Simberi’s processing facility is expected to restart in the second quarter of FY22, St Barbara has forecast its consolidated gold production will be marginally higher in the second half of FY22.

St Barbara share price snapshot

The St Barbara share price has slipped by around 37% year to date. It is also around 53% lower than it was this time last year.

The post St Barbara (ASX:SBM) share price falls 3% on $177 million loss 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tyro Payments Ltd (ASX: TYR) share price is lifting off this morning, up 6% to $3.80 per share.

This follows on the ASX payment solutions company’s financial results for the year ending 30 June (FY21), released today.

Tyro share price boosted on record FY21 results

• Record $25.5 billion in transactions processed by Tyro merchants, an increase of 26% from $20.1 billion reported in FY20
• Revenue increased 13% year-on-year to $238.5 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.2 million, compared to a $4.4 million loss in FY20
• Statutory net loss after tax of $29.8 million, compared to a net loss of $38.1 million in FY20
• $172.8 million in cash and financial investments on the balance sheet

What happened during the reporting period for Tyro Payments?

Tyro reported that its record high $25.5 billion in transactions in FY21 were processed on behalf of more than 58,000 merchants. The company’s gross profit hit an all-time high of $119.4 million.

The payments company managed to achieve this despite rolling COVID-19 lockdowns impairing many of its core customers, especially those in the retail, hospitality and health sectors.

As part of its growth strategy, Tyro acquired health fintech Medipass in May. In June it completed its merchant acquiring alliance with Bendigo Bank. This alliance has added some 18,500 Bendigo Bank merchants to Tyro’s merchant portfolio. The company estimates this will add an annualised transaction value of approximately $5 billion.

What did management say?

Commenting on the results, Tyro’s CEO, Robbie Cooke said:

We are executing against our strategy of ‘build’, ‘buy’, ‘invest’ and ‘partner’ as outlined in our 2019 prospectus prior to listing on the ASX and the business outcomes delivered in FY21 provide us with unique opportunities to accelerate growth.

Our combination with Medipass is a significant step in building out our core health vertical and is consistent with our strategy to extend our offering through acquisition where there is a distinct opportunity to gain scale and to enhance our position in a key vertical.

Our alliance with Bendigo Bank is an exciting combination of Australia’s fifth biggest retail bank with the fifth largest merchant acquiring bank. Partnering with Bendigo Bank sees Tyro’s leading proprietary payments platform made available to Bendigo Bank’s current and future business customers – giving them access to more features, more payment options and seamless integrations to more than 300 point of sale systems.

What’s next for Tyro Payments?

Looking ahead, the company said that future COVID-19 lockdowns remain unpredictable. However, it noted that it’s seen businesses rebound quickly over the past year whenever lockdowns lifted.

Tyro intends to continue rolling out new products and features to build out its payments platform.

According to Cooke, “Products such as the Tyro Go terminal will open up new verticals (trades and micro merchants for example) and provide a ‘queue busting’ solution for larger retailers.”

Tyro will also continue to pursue attractive acquisitions, large or small, Cooke said, to “gain scale, leverage our platform or capabilities, enhance our market position or supplement our ecosystem”.

The Tyro share price is up 17% over the past 12 months.

The post Tyro (ASX:TYR) share price lifting off on record FY21 results appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Woolworths Group Ltd (ASX: WOW) share price is moving higher in early trade. This comes after the supermarket giant released its impressive FY21 full-year result this morning.

At the time of writing, shares in the $52 billion company are trading 1.25% higher to $41.33. Based on the latest result, Woolworths shares are now trading on a trailing price-to-earnings (P/E) ratio of ~26.4 times.

What’s happening with the Woolworths share price?

It is euphoria for the Woolworths share price and its shareholders following today’s result. A strong operational environment over the past 12 months has put the retail operator in an attractive position.

According to its results, the company experienced a 5.7% uptick in group sales to $67,278 million in FY21. However, the magic really occurs on the bottom line of Woolworths’ full-year financial statement. In particular, group net profit after tax surged 22.9% to $1,972 million.

For the most part, this spurt of earnings growth from the blue-chip was driven by improved trading conditions. In addition to this, the company benefitted from its demerger of Endeavour Group Ltd (ASX: EDV).

Consequently, the company has been left with a cash cow that it plans to, in part, give back to shareholders — likely lifting the Woolworths share price today.

In sharing the success, the supermarket giant declared a final dividend of 55 cents per share and a hefty $2 billion share buyback.

Management commentary

Commenting on the result, Woolworths CEO Brad Banducci said:

The Delta variant of COVID has seen the operating environment change rapidly in the last three months. We are working hard to protect our team and continuing to provide food and everyday needs for our customers and the communities which we serve. It has become clear that vaccination is key to the safety of our team and the easing of restrictions, and we are committed to supporting vaccination efforts across the broader community.

I want to express my deep gratitude to our team as they continue to demonstrate care for each other and our customers, and acknowledge the Government and industry for their support as we work through these challenging times together.

Additionally, the buyback announced will be an off-market one. This return of capital to shareholders will also provide $840 million of franking credits to investors.

Where to from here?

Finally, Woolworths’ management refrained from providing guidance for FY22. Mr Banducci noted that the delta variant will continue to challenge the business and community.

However, the CEO stated, “I am confident that we have the right foundations in place to continue to deliver value for our customers, teams, communities, and shareholders.”

Although the lack of guidance is typically negative, it hasn’t depressed the Woolworths share price today.

For investors hoping to snag the upcoming dividend, the ex-dividend date will be on Thursday 2 September.

The post Woolworths (ASX:WOW) share price gains on 23% profit surge appeared first on The Motley Fool Australia.

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

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Investors are selling the Jumbo Interactive Ltd (ASX: JIN) share price this morning after the company released its FY21 full-year results.

Shares in the digital lottery business briefly opened 1.20% higher to $18.50 on open, before overwhelming selling pressure dragged its shares well into negative territory.

At the time of writing, the Jumbo Interactive share price is down 8.37% to $16.78.

Jumbo Interactive share price tumbles despite record result

The Jumbo Interactive share price is sinking despite a well-rounded financial performance with the addition of two new segments, Software as a Service (SaaS) and managed services. Some key highlights include:

• Total transaction value (TTV) increased 37% to $487 million
• Revenue up 17% to $83.3 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 13% to $48.9 million
• Underlying net profit after tax up 7% to $28.3 million
• Fully franked final dividend of 18.5 cents per share
• Total FY21 dividend of 36.5 cents per share.

What happened to Jumbo in FY21?

Despite today’s sharp selloff, the Jumbo Interactive share price has been a solid performer this year, up 31% year-to-date.

This year, the company took a different approach, reporting its FY21 results under three distinct operating segments of lottery retailing, SaaS, and managed services.

Lottery retailing continued to grow strongly, with TTV, revenue and active players up 15%, 17.1% and 1.5%, respectively. The company said that the net effects of COVID-19 mobility restrictions had been positive for overall performance, but the strong growth also highlighted the value from its ongoing investment into data and analytics.

Jumbo reported that its emerging SaaS and managed services segments made material contributes to the increase in TTV.

The company said its SaaS segment had grown significantly since its inception in FY20, reflecting several clients being fully operational and billable for the year. SaaS revenues currently have a 4Q21 annualised run-rate of $132.2 million TTV.

FY21 is Jumbo’s first year reporting its managed services segment, which comprises its wholly-owned UK subsidiary, Gatherwell and new Australian business, Jumbo Fundraising.

Gatherwell was acquired in November 2019 and provides lottery management services to approximately 80 local authorities and 2,000 school lotteries in the UK.

Another acquisition

In addition to today’s FY21 full-year results, Jumbo also announced its acquisition of Stride Management Inc.

Stride will represent the company’s first managed services acquisition in the Canadian lottery market. Jumbo forecasts this acquisition to generate ~A$122 million in TTV with an estimated service revenue of ~A$6.5 million and net profit before tax of ~A$2.5 million.

Jumbo believes this will provide the company with a strategic foothold in the Canadian charity lottery market with a significant A$1.2 billion estimated total addressable market.

Jumbo will front up A$11.7 million for the acquisition, funded entirely from available cash. 70% of the consideration will be payable on completion of the acquisition, while the remaining 30% will be paid in two instalments in FY22 and FY23, subject to earnings hurdles.

Management commentary

Jumbo Interactive CEO and founder Mike Veverka commented on the company’s performance, saying:

FY21 reflects another record result for Jumbo. Importantly, while our lottery retailing segment is trading well without the benefit of jackpot growth, our SaaS and managed services segments have made a meaningful contribution to overall performance.

Our seamless transition to the new Tabcorp Agreement and strong performance in our lottery retailing segment is noteworthy. These continue to deliver steady growth at low jackpot levels, while boosting sales significantly at the larger jackpots.

Looking ahead, Veverka reaffirmed his confidence in the company’s long-term growth prospects for digital lotteries.

FY21 has been a milestone year for Jumbo, as we implemented a new operating model, improved our governance structure and moved from one to three operating segments. The global digital lottery industry shows no signs of slowing down and we will continue to invest in the business to ensure we are ready to capitalise on the medium to long term growth opportunities that lie ahead. We now look forward to integrating Stride on our journey.

What’s next for Jumbo?

Jumbo believes its lottery retailing is well-positioned to capitalise on the ongoing digital evolution across the lottery sector.

The board maintained a dividend policy of 85% of statutory NPAT, translating to a final dividend of 18.5 cents per share or full year FY21 dividend of 36.5 cents.

The Jumbo Interactive share price will go ex-dividend on Thursday, 2 September, with dividends paid out on Friday, 24 September.

The post Jumbo Interactive (ASX:JIN) share price slides 8% despite record FY21 performance appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Costa Group Holdings Ltd (ASX: CGC) share price is tumbling lower following the release of its half year results.

At the time of writing, the horticulture company’s shares are down 4% to $3.25.

Costa share price falls after reporting modest profit growth

• Revenue flat over the prior corresponding period at $612.4 million
• Directly attributable COVID-19 costs of $2.5 million
• Earnings before interest, tax, depreciation, amortisation, and the fair value movements in biological assets (EBITDA-S) up 4.3% to $124.4 million
• Net profit after tax-S up 3% to $44.4 million
• Fully franked interim dividend of 4 cents per share
• Net debt of $208 million, representing leverage of 1.4x

What happened in FY 2021 for Costa?

For the six months ended 30 June, Costa reported a flat revenue of $612.4 million and a 3% increase in net profit after tax to $44.4 million. A key driver of this was its International business, which delivered a record result.

International revenue increased 25% over the prior corresponding period thanks to positive pricing, yield, and demand. This was supported by its premium varieties in China, which continue to attract a significant price premium. Management believes this supports the company’s continuing development of its China farming footprint across multiple locations in Yunnan Province.

The strong performance in the International business offset a mixed performance by the Domestic business. It struggled with inclement weather and weaker avocado pricing. The latter was driven by sustained higher volumes and a contraction in the foodservice sector.

What did management say?

Costa’s CEO, Sean Hallahan, was pleased with the half and particularly the performance of its International business.

He said: “Our international segment through our operations in China and Morocco continues to make an ever-increasing contribution to our overall performance and has delivered record results. This has not only occurred because of increased berry plantings but is also an endorsement of our world leading blueberry genetics, which continue to be well received by consumers across Asia and Europe and are attracting a price premium.”

“Domestic produce performance was mixed for the half, with avocado performance impacted by high volumes and resultant pricing below forecasts. Our berry category delivered a positive performance with generally favourable pricing across our four main berry varieties. Table grape and first half citrus yields from the Sunraysia (Vic) region were unfortunately impacted by a New Year’s Day hail storm. While there were relatively positive demand and pricing conditions for mushrooms our ability to fully benefit was not able to be realised due to lower production volumes.”

What’s next for Costa?

Failing to give the Costa share price a lift today was news that it is on track to achieve its guidance in FY 2021.

Mr Hallahan explained: “We have confirmed our full year forecast which is in line with that disclosed at the 2PH acquisition and capital raise, which includes CY21 EBITDA-S and NPAT-S being marginally ahead of CY20. There is still a significant amount of domestic activity to occur over the second half, with positive momentum driving the remainder of the citrus season, especially with strong export into Japan, China and Korea, and the main berry season expected to deliver healthy growth versus previous comparable period.”

The Costa share price is now down 21% in 2021.

The post Costa (ASX:CGC) share price falls 4% after reporting modest first half growth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Polynovo Ltd (ASX: PNV) share price is languishing in early trade on Thursday as the medical devices company reported its FY21 earnings.

Let’s investigate further.

Polynovo share price stalls on strong revenue and on turning a profit

Here are the highlights of the company’s earnings report:

• Total revenue increased 32% year on year to $29.3 million
• Distributor sales also grew by 53% over the year
• Gross margin increased by 3% from “manufacturing efficiency gains”
• Corporate and overhead expenses also increased by 10% as the business expanded
• Net profit after tax of $260,000 when adding back in non-cash items.
• Achieved break even in FY21.

What happened in FY21 for Polynovo?

In a positive for the Polynovo share price, the company grew revenue and product sales by 32% and 34% respectively from the year prior.

As a result of “manufacturing efficiencies”, the company saw a 3% improvement in its FY21 gross margin, helping an operating profit of $400,000, up from a loss of $1.2 million the year prior.

Operating expenses increased by 26% year on year to $27.3 million as a reflection of the business expanding. As a result, corporate and overhead expenditures widened by 10% from this as well.

Polynovo also increased its staff headcount from 78 to 106, a 36% increase over the year. This helped to drive sales and also grew “employee-related expenses” by about 30%.

Consequently, the company reached its break-even point in FY21 and turned a net profit after tax (NPAT) of $260,000 and EBITDA of $635,000 which could weigh in on the Polynovo share price.

This was backed by a 55% year on year growth in research and development (R&D) to focus on key clinical trials.

Polynovo left the quarter with $7.7 million in cash on hand, flat on its half-year results, but down from $11.6 million in FY20. Although, there was “minimal cash burn from operations” at $250,000.

The company also commissioned its Unit 1 manufacturing facility to produce polymers, micro-spheres, foam cutting and a raft of other functions.

In addition, the company also obtained 99 new hospital customers and 7 new distributors that will be covering 9 markets.

What did management say?

Speaking on its FY21 performance, Polynovo’s directorship said:

Sales in all our direct markets continue to grow with the second half providing strong improvement in revenues, new account acquisitions and sales team expansion. Importantly PolyNovo achieved a small profit (excluding non-cash items) and was cash breakeven, a significant company milestone. Our cash on hand position is strong as at 30 June 2021 and forward cashflows are building despite forecast expenditure required for growing sales teams and investing in new product development.

What’s next for Polynovo?

Polynovo expects strong results in FY22 across all of its key markets, including the US, Europe, UK Middle East, Asia, Australia and New Zealand.

The company’s NovoSorb graft is expected to see sales growth in FY22, with “70% of burns centres now having purchased” the product.

Furthermore, Polynovo intends to exhibit “aggressive revenue growth” by further expanding its headcount and entering into new markets, particularly within the European Union.

Finally, the company will continue its key clinical trials throughout the coming periods in FY22.

Regarding its outlook, Polynovo’s directorship concluded “the business will continue to reinvest cash flows to expand market share in existing markets, enter new markets, and develop new products”.

The Polynovo share price is down 0.94% on the day and is in the red by 46% this year to date. This extends the loss over the last 12 months of about 3%.

These results have lagged the S&P/ASX 200 index (ASX: XJO)’s gain of around 25% over the last year.

The post Polynovo (ASX:PNV) share price flat as revenue grows 32% in FY21 appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Ardent Leisure Group Ltd (ASX: ALG) share price has rocketed 25% on Thursday morning after the leisure and entertainment group’s latest full-year results release.

Ardent Leisure share price rockets on bumper EBITDA figures

Some of the key takeaways from this morning’s FY21 results include:

• Revenue down 1.9% from restated FY20 results to $390.7 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 165.6% to $67.3 million
• Net loss after tax reduced by 36.1% to $86.9 million
• EBITDA excluding specific items up 434.7% to $30.6 million

The Ardent Leisure share price has surged higher on Thursday morning following the latest update.

What happened in FY21 for Ardent Leisure?

A strong result for Main Event, the group’s chain of US family entertainment centres, underpinned the full-year result. The US-based segment reported EBITDA of US$64.3 million, up 70.9% on the prior year. Excluding specific items, segment EBITDA jumped 168.1% to US$36.5 million.

Ardent Leisure is anticipating four new centre openings in FY22 following the strong trading result in the second half of the year.

COVID-19 disruptions were unsurprisingly a major drag on Australian earnings. Theme park traffic remains subdued with interstate borders closed and lockdowns interrupting the Aussie economy.

What did management say?

Ardent Leisure Chairman, Dr Gary Weiss, had the following to say about the result:

We are pleased to see our results have improved on prior year notwithstanding the ongoing impact of COVID-19 on our businesses.

The second half of the financial year has seen Main Event rebound well, with constant centre EBITDA outperforming pre-COVID levels in the latter part of the year. We are optimistic that this positive momentum will continue into FY22.

Today’s Ardent Leisure share price surge shows investors are similarly optimistic following today’s results.

What’s next for Ardent Leisure and its share price?

Ardent Leisure remains optimistic with pent up demand across local and interstate markets. The vaccine rollout and subsequent reopening of the broader economy are hoped to boost earnings.

The Ardent Leisure share price is now up 83% year to date following this morning’s surge, meaning it has significantly outperformed the S&P/ASX 200 Index (ASX: XJO).

The post Ardent Leisure (ASX:ALG) share price rockets 25% on FY21 earnings surge appeared first on The Motley Fool Australia.

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• The Megaport (ASX:MP1) share price is up almost 40% in 6 months
• City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth
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Motley Fool contributor Ken Hall 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 Bruce Jackson.

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