The Zip Co Ltd (ASX: Z1P) share price is in the red this morning. This comes after the company released its FY21 full-year results just before market open today.

Zip shares sank 3.96% to $7.03 apiece in early morning trade, before making up some ground to settle at $7.20 at the time of writing.

Let’s take a closer look to see how the buy now, pay later provider performed for the period.

Zip share price slides despite record growth across key metrics

The Zip share price is in reverse regardless of the company’s record result for the 12 months ending 30 June 2021. Here are some of the key highlights:

• Revenue of $403.2 million, up 150% year on year (FY20 $161 million)
• Transaction volumes of $5,8 billion, up 178.5% (FY20 $2.1 billion)
• Transaction numbers of 41.3 million, up 293% (FY20 10.5 million)
• Active customers at 7.3 million, up 247.5% (FY20 2.1 million)
• Active merchants at 51,300, up 109.4% (FY20 24,500)
• Cash gross profit of $198 million, up 147% (FY20 $80.1 million)

What happened in FY21 for Zip?

Investors are selling off Zip shares despite the company signalling a transformational year that saw it emerge as a global BNPL player.

Zip successfully expanded its presence across 12 international markets, including the United States, Canada, the United Kingdom, and Mexico. This led the business to deliver a strong financial performance by capturing new market share.

The US retail market alone is estimated to be worth $5 trillion, representing attractive growth opportunities.

In addition, Zip added new merchant partners onto its network, with notable inclusions such as JB Hi-Fi Limited (ASX: JBH) and Newegg Commerce Inc. It also established key partnerships with payment service providers (Stripe) and e-commerce platforms (BigCommerce).

Lastly, the company brought new BNPL payment innovations (Tap & Zip, Subscriptions, Chrome Extension) to market. This effectively allowed customers to easily access Zip’s integrated platform to make purchases both online and in-store.

What did management say?

Zip managing director and CEO Larry Diamond commented on the milestone achievement:

This has been a truly transformational 12 months as the business has continued to deliver, despite the most exceptional global economic conditions. We fearlessly started the year with a clear strategy for both local growth and global expansion, and pleasingly, 12 months later, we are delivering on this plan, with record growth across all metrics in all jurisdictions, with Zip now operating in 12 countries across five continents.

The trend and shift away from the unfriendly world of credit cards that was the genesis of the Australian business has proven to be a global phenomenon, and Zip continues to accelerate in all our key markets.

What’s instore for Zip in FY22?

Looking ahead, Zip advised that FY22 is expected to be a bumper year. So far, total transaction volume (TTV) is growing 58% in Australia and 240% in the United States year to date compared to FY21. The company noted that global market entries and investments are contributing a meaningful TTV in the new financial year.

Furthermore, Zip continues to onboard more global merchants to drive customer uptake, and essentially, TTV growth. It affirmed a healthy pipeline of enterprise merchants and strategic partnership opportunities.

Whilst COVID-19 has pushed the way businesses transact more towards online, Zip stated it’s well capitalised to take advantage of this. It has allocated significant resources in merchant products to unlock new customer segments and drive referrals to merchant partners.

Zip share price snapshot

Over the past 12 months, the Zip share price has been relatively flat, down 3%. Year to date, the company shares have climbed, up by almost 40%. Based on the current Zip share price, the company has a market capitalisation of around $4.1 billion.

The post Zip (ASX:Z1P) share price sinks despite 150% increase in revenue appeared first on The Motley Fool Australia.

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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. owns shares of and has recommended ZIPCOLTD 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 Iluka Resources Ltd (ASX: ILU) share price has fallen more than 6% in early trade. Today’s slump comes after the Aussie resources company’s latest results release.

Iluka share price slumps 6% on half-year results

Iluka provided its operational and financial results for the half-year ended 30 June 2021 (1H21). This morning’s release was punctuated by a number of headline growth figures, including:

• The group reported mineral sands revenue up 61% on 1H20 figures to $735.6 million
• Underlying Group earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 37% to $308.2 million
• Net profit after tax (NPAT) up 14% to $129.0 million
• A 288% increase in free cash flow to $179.3 million
• An interim dividend of 12 cents a share

It’s worth noting that Iluka had already provided a second-quarter update on 22 July. The Iluka share price leapt 4.5% following that announcement which contained many of the key production and earnings figures included in the half-year result.

The Aussie resources company did have several supply and demand concerns in the latest result.

Already strong demand for high-grade titanium dioxide feedstock was “amplified” by increased concerns around future supply and the settlement of a contract dispute with a major customer.

There was also a “significantly reduced” earnings contribution from the group’s Mining Area C royalty after its recent demerger. Iluka retains a 20 per cent stake in the ASX-listed Deterra Royalties Ltd (ASX: DRR) business.

There was also lower production at Iluka’s Jacinth-Ambrosia, South Australia and Cataby, Western Australia sites during the half.

However, Iluka still managed to boost volumes and more than offset foreign exchange impacts on earnings. It wasn’t enough for investors though as the Iluka share price remains under pressure on Wednesday.

Foolish takeaway

The Iluka share price slumped more than 6% early on Wednesday following its latest update. At the time of writing, it had pulled back to $8.66 a share, down 4.42%.

However, Iluka’s share price remains up 33% in 2021. That’s well ahead of the S&P/ASX 200 Index (ASX: XJO)’s year to date return of 12.8%.

The post Iluka (ASX:ILU) share price slumps 6% on FY21 results 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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The Orocobre Ltd (ASX: ORE) share price is down slightly this morning after the company announced its FY21 full-year results and successful merger with Galaxy Resources Ltd (ASX: GXY).

At the time of writing, the Orocobre share price is trading 0.98% lower at $9.09.

Orocobre share price dips despite bullish lithium outlook

FY21 was a breakthrough year for Orocobre, underpinned by a strong recovery in lithium spot prices and demand. Key highlights from its FY21 results include:

• Revenue up 9.9% to US$84.8 million
• Net loss after tax of US$89.5 million impacted by US$74.9 million of Argentine tax rate changes
• Sales of 13,319 tonnes of lithium carbonate (FY20: 10,514 tonnes)
• Average free-on-board (FOB) sales price of US$4,983/tonne (FY20: US$5,520/t)
• Average realised prices of US$8,476/t in the June quarter
• Average production costs down 12% to US$3,860/t

What happened to Orocobre in FY21?

The Orocobre share price has rallied 104% year-to-date and surged 228% in the past 12-months thanks to the hype around lithium.

The company delivered a strong financial and operational performance from its flagship Olaroz lithium facility, located in northern Argentina.

The project achieved strong cash flow and pricing momentum in the June quarter, despite the overall decline in FOB sale prices in the full year FY21. The average realised price for its lithium carbonate in the June quarter was US$8,476/tonne, up 45% quarter-on-quarter and 117% on the prior corresponding period (pcp).

Looking ahead

The company said Olaroz’s budgeted FY22 production was fully contracted and substantially subject to variable pricing with exposure to continued price increases. Despite the potential variance in price, management retained its previous guidance of US$9,000/tonne for the first half of FY22.

Orocobre is targeting the completion of an Olaroz Stage 2 expansion in FY22, which is expected to deliver a significant reduction in cash costs and step up in volumes.

Construction is currently underway at Olaroz to produce an additional 25ktpa of lithium carbonate. The company expects the production of primary grade lithium carbonate to ramp up over 2 years to full capacity.

In addition to its FY21 results, Orocobre advised that it has obtained all necessary approvals to complete its merger with Galaxy Resources, effective from today.

The results described the merger as one that “has the potential to be a Top 5 global lithium chemicals company with a highly complementary portfolio of assets delivering geographical and product diversification across brine, hard rock and vertical integration across the supply chain”.

Management commentary

Commenting on the results, Orocobre managing director and CEO Martin Perez de Solay said:

Orocobre has continued to deliver positive operating margins, despite COVID-19 and weaker market conditions throughout the first half of the financial year. This has been achieved through strong sales performance and a focus on costs and operating excellence.

Solay welcomed the new Galaxy shareholders and revealed the company’s plans to rebrand.

I would like to welcome Galaxy shareholders, employees and other stakeholders to Orocobre which subject to shareholder approval we will be rebranding to Allkem Limited and changing the ASX ticker to AKE.

The name Allkem recognises that together we can deliver more for stakeholders. With the merger, we will go further in our commitment to delivering the lithium chemicals that the world increasingly needs to mitigate climate change and carbon emissions.

What’s next for Orocobre?

The bullish outlook for lithium has helped the Orocobre share price break above its 2018 highs.

Looking ahead, the company cited robust demand for lithium in China, “[continuing] to push up global prices with weighted average prices of lithium carbonate and lithium hydroxide up YTD by 64% and 46% respectively according to Benchmark Minerals Intelligence.”

The post Orocobre (ASX:ORE) share price slips amid merger success and FY21 results 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. 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 Seven Group Holdings Ltd (ASX: SVW) share price is in the red this morning following the release of the company’s results for financial year 2021 (FY21).

Right now, the Seven Group share price is $21.93, 4.15% lower than its previous close.

Additionally, Seven Group announced today that Kerry Stokes will be stepping down as chair after the company’s annual general meeting in November. Terry Davis will be taking the top spot on Seven Group’s board following Stokes’ retirement.

Seven Group share price slumps despite $4.8 billion revenue

Here’s how the diversified operating and investment group performed over FY21:

• $4.8 billion on trading revenue – 6.1% more than that of FY20
• Underlying earnings before interest and tax (EBIT) of $792.1 million, up 7.3%
• Operating cash flow of $622.4 million, up 15.6%
• Fully franked final dividend of 23 cents per share (10% more than that of FY20). That brings the company’s full year dividends to 46 cents

The company’s WesTrac segment, one of the largest Caterpillar equipment dealers, was a crown jewel over FY21. The segment brought in $400.2 million of underlying EBIT – 7.9% more than in FY20.

According to Seven Group, WesTrac was boosted by ongoing strength in mining production and construction.

Seven Group’s equipment hire and solutions provider, Coates, had EBIT of $211.6 million, up 3.8% on the prior corresponding period.

Coates’ activity levels were impacted in the first half due to delayed projects, cancellation of events, and lockdowns.

Construction materials company Boral Limited (ASX: BLD) brought in $38 million of EBIT after Seven Group’s dramatic takeover. Those interested in Boral’s FY21 results can find them here.

The company’s energy segment’s EBIT was $102.3 million, 19% less than in FY20.

Seven Group’s energy segment is made up of SGH Energy and the company’s 30% holding in Beach Energy Ltd (ASX: BPT). Beach Energy’s production and profits both fell in FY21.

Finally, Seven Group’s media segment, made up of its 40% holding of Seven West Media Ltd (ASX: SWM), brought in $57 million of EBIT, 22% more than in FY20.

Seven West Media has a great year, as its own FY21 earnings outlined.

Seven Group ended the period with 160.9 million of cash and $804 million of Interest-bearing loans and borrowings.

What happened in FY21 for Seven Group?

Here’s what drove the Seven Group share price in FY21:

Perhaps the most exhilarating news from Seven Group in FY21 was its extended battle for Boral.

In May, the company offered Boral shareholders $6.50 per share. Seven Group stated it only wished to increase its 23.3% stake in Boral to 30%.

However, after a huge amount of push back from Boral’s board, including claims Seven Group’s bid would undervalue Boral by as much as 40.5%, and a number of increased bids, Seven Group ended up paying $7.40 per share and winning 69.6% of Boral’s outstanding shares.

Seven Group also completed a $500 million capital raise and $33 million share purchase plan in April. The proceeds eventually went towards its bid for Boral.

Finally, it committed to reaching net zero greenhouse gas emissions by 2040 within Seven Group’s operating businesses, WesTrac and Coates.

What did management say?

Seven Group’s managing director and CEO Ryan Stokes commented on the results driving the company’s share price today. He said:

Today’s result reflects the strong performance of our key operating businesses…

Our industrial services portfolio is benefitting from growth of mining production and the substantial pipeline of infrastructure activity… We undertook the takeover of Boral based on our confidence in the value opportunity presented by divesting Boral’s international interests and more focused management to achieve improved margins and returns from a transformation of its Australian operations. The addition of Boral to SGH creates an industrial portfolio second to none in Australia.

The group’s operating businesses and investments are well-placed to capture the available opportunities in their respective markets.

What’s next for Seven Group?

Here’s what might move the Seven Group share price in FY22:

Seven Group released a small amount of guidance for FY22, which assumes current COVID-19 outbreaks are brought under control and restrictions on construction are lifted in the near future.

The company expects WesTrac to deliver low single-digit EBIT growth in FY22. The lessened growth is expected to reflect the impact of the CAT parts price decrease which occurred in July 2021. Meanwhile, Coates is expected to report high single-digit EBIT growth after it continues to focus on costs and delivery of key infrastructure projects.

Additionally, Seven Group will consolidate Boral as a subsidiary in FY22. Seven Group plans to support Boral through its transformation program, refocus on Australia, and ensure Boral can deliver on its full potential with revenue, earnings, and margin improvements.

Finally, Seven Group will release its Sustainability Report next month.

Seven Group share price snapshot

The Seven Group share price has fallen 4% year to date. However, it has gained 17% since this time last year.

The post Seven Group (ASX:SVW) share price drops on FY21 earnings 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 Hansen Technologies Limited (ASX: HSN) share price is gaining in early trade, up 2.2% to $6.24 per share.

This comes following the release of the company’s full year financial results for the year ending 30 June (FY21)

Hansen Technologies’ share price lifts on record FY21 results

• Operating revenue increased 2% year-on-year to $307.7 million.
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $120.2 million, up 40% from the $85.7 million reported in FY20.
• Underlying net profit after tax (NPAT) of $56.8 million, up 93% from FY20.
• $70.1 million worth of free cash flow, up from $44.2 million in FY20.
• Declared a final, partially franked, dividend of 5 cents per share (cps).

What happened during the reporting period for Hansen Technologies?

The company, which provides software and services to the energy, water and communications industries around the world, delivered a record year across its key metrics.

It reported an improved underlying EBITDA margin for FY21 of 39.4%. Hansen said this was driven by improved cost management along with reduced travel during the global pandemic.

The company continued with new hires, saying its strong recruitment of new developers will enable it to deliver on its future.

The Hansen Technologies share price could also be getting a lift from the report it also brought on a “significant” number of new customer during the year, including Telefonica, Western Power, and Nautilus Solar.

In June BGH Capital made a takeover offer, valuing Hansen at $6.50 per share. The company said it will keep the market informed as matters progress. In the meantime, “We are focused on driving our strategic agenda while the BGH Capital process unfolds.”

What did management say?

Commenting on the results, Hansen’s CEO, Andrew Hansen said:

It is with great pleasure that we share the Hansen results for FY21, another record year for Hansen across all key metrics, continuing our strong performance throughout our history and more recently the global pandemic.

We have grown revenues 8% on a constant currency basis, driven a strong increase in profitability leading to a record full-year EBITDA while investing in our business to deliver the large volumes of new business and to position Hansen for a “COVID-normal” world…

The FY21 result proves the long-term resilience of our business model of growing revenues and EBITDA by investing in both our technology and the value accretive aggregation of strategically targeted businesses.

What’s next for Hansen Technologies?

The record date for the final dividend is 30 August, with the payment date on 21 September.

Hansen said it expects continued regulatory change to help drive its organic growth going forward. It’s targeting EBITDA margins of 32–35% over the long run.

Management said they are confident of achieving Hansen’s FY25 financial targets of $500 million of revenue.

The Hansen Technologies share price is up 95% over the past 12 months.

The post Hansen Technologies (ASX:HSN) share price takes 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 Hansen Technologies. The Motley Fool Australia has recommended Hansen Technologies. 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 APA Group (ASX: APA) share price is falling on Wednesday as the energy infrastructure business reported its FY21 earnings.

APA shares are down 1.76% at the time of writing to $9.79 a share.

Let’s investigate further.

APA Group share price falls on flat revenue and EBITDA growth

The company outlined its progress over the year, with key takeouts including:

• Revenue of $2,145 billion, a 0.7% growth year on year
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $1,633 billion, a 1.3% decrease from the year prior
• Net profit after tax (NPAT) of $3.7 million, down from $311.7 million a year ago
• Free cash flow (FCF) down 5.7% over the year to about $902 million
• Final distribution of 27 cents per security, up 2%, bringing FY21 total distributions to 51 cents per security

What happened in FY21 for APA Group?

Challenging the APA Group’s share price, the company advised it had faced headwinds in FY21. This is reflected in its financial performance.

For example, underlying EBITDA contracted by over 1%. This was due to “increased investment in strategic development opportunities,” as per the company.

However, it also stated this figure was down due to higher insurance and compliance costs, and “softer contract renewals in challenging market conditions”.

In addition, it recognised NPAT of $3.7 million, a significant down step from $311 million in the year prior. APA stated NPAT was low due to impacts from the “$249.3 million non-cash Orbost impairment charge,” alongside an additional $148 million in finance costs with APA’s bond and debt maturity redemptions.

Moreover, FCF came in 5.7% behind FY20, explained by a “non-recurring benefit” that occurred last year.

Further, the company announced its final distribution of 27 cents per security. This totals for an FY21 distribution of 51 cents per security, a 2% increase.

Finally, APA’s “organic growth pipeline” has now surpassed $1.3 billion, a $300 million gain from the year prior.

What did management say?

APA CEO Rob Wheals said:

In FY21, APA has again delivered stable and reliable earnings in challenging market conditions while at the same time making good progress on our strategy and laying the foundation for future growth.

Speaking on APA’s end markets, Wheals added:

Importantly, gas continues to play a critical role in Australia’s energy mix, both as a critical source of firming for variable renewable energy and helping ensure Australians will have access to a reliable, and affordable source of energy. Through our Pathfinder Program we have continued our investments in the energy solutions of tomorrow which have the potential to unlock the economic benefits from repurposing our infrastructure assets while ensuring we can continue to respond to the changing energy needs of our customers.

What’s next for APA Group?

APA Group forecasts its FY22 distribution to expand by around 4% to 53 cents per security.

In addition, it estimates its “organic growth capex (capital expenditures) to exceed $1.3 billion” over the coming two years.

APA is also underway on its “sustainability roadmap” where it has an ambition of achieving “net-zero emissions” by 2050. According to the report, this program is “now embedded into strategy”.

The APA Group share price has climbed 3.2% this year to date, well behind the S&P/ASX 200 Index (ASX: XJO) return of about 14% since 1 January.

The post APA Group (ASX:APA) share price plunges on flat earnings growth 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended APA Group. 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 SILK Laser Australia Ltd (ASX: SLA) share price has been a very strong performer on Wednesday.

In morning trade, the laser clinic company’s shares are up 20% to $4.09 following the release of its full year results.

SILK Laser share price rockets after beating upgraded guidance

• Network cash sales increased 68% to $85.1 million
• Reported revenue grew 82% to $58.9 million
• Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) up 180% to $17.3 million
• Pro forma net profit after tax up 839% to $7.5 million
• 11 new SILK clinics opened bringing network to 116 after acquisitions

What happened in FY 2021 for SILK?

SILK was on form in FY 2021, delivering a 68% increase in network cash sales to $85.1 million and a 180% jump in pro forma EBITDA to $17.3 million. The latter was ahead of its upgraded EBITDA guidance range of $15 million to $16 million, which explains why the SILK Laser share price is performing so strongly today.

This was driven by a 52% increase in like for like sales, new store openings, and strong demand in the injectables and body categories. Underpinning this was a 28% increase in average customer spend to $605.

What did management say?

SILK Laser’s Co-Founder and Managing Director, Martin Perelman, said: “The past 12 months have been a busy and highly successful period for SILK, and I am very proud of our first full year results delivered as a publicly listed company.”

“Given the dedication and commitment of SILK’s employees, franchisees and joint venture partners, and our focus on excellence in customer service, all of SILK’s service categories performed in line or above expectations, and the Company is well-positioned to drive long term growth.”

What’s next for SILK Laser?

Also potentially giving the SILK Laser share price a lift today was a trading update and management’s outlook.

It revealed that July 2021 sales and EBITDA exceeded what was achieved in July 2020 despite lockdowns. This is a big positive given that July and September 2020 were the most profitable months of FY 2021.

Mr Perelman said: “The underlying business foundations of SILK are strong as demonstrated by like-for-like clinic performance when adjusted for lost trading days due to lockdowns. We’re carefully managing the COVID-19 challenges across SILK, and at present approximately 80% of our SILK clinic network remains open. Our priority is to operate in a way that keeps our customers and team members safe. Our clinics continue to build waiting lists for clients in states where clinics are closed, to capture pent-up demand in readiness for easing of lockdown restrictions. We intend to provide a further update on Q1 FY22 trading in October.”

Management also revealed that it plans to open 4 to 8 new clinics in FY 2022, focused on Australia’s East Coast and New Zealand.

It sees these geographical catchments as key growth markets, with up to 25 potential new sites identified for FY 2022 and FY 2023 across Australia’s East Coast. Whereas in New Zealand it aims to add 4 new clinics in FY 2022, taking the total number to 19.

The SILK Laser share price is up 14% in 2021.

The post SILK Laser (ASX:SLA) share price rockets 20% after beating FY21 guidance 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 recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended SILK Laser Australia 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 Northern Star Resources Ltd (ASX: NST) share price has opened only slightly higher on Wednesday after the company released its FY21 full-year results.

At the time of writing, shares in the gold miner are up 0.2% to $9.78.

Northern Star share price higher on record financial result

Northern Star delivered a record financial result, following the incorporation of Saracen Mineral Holdings Ltd (ASX: SAR) from 12 February 2021. Key highlights for FY21 include:

• Revenue up 40% to $2,761 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) lifting 216% to $2,268 million.
• Net profit after tax (NPAT) rallying 300% to $1,032 million.
• Final dividend of 9.5 cents per share
• Annualised gold price realised up 3% to A$2,227/oz
• Annualised all-in sustaining cost (AISC) increased 10% to A$1,483/oz

What happened to Northern Star in FY21?

The Northern Star share price has struggled to perform in FY21, down 22% year-to-date.

Despite the struggling share price, the company has continued to perform well from a financial and operational perspective.

Following the acquisition and incorporation of Saracen, Northern Star became the sole owner of the iconic Super Pit and Mt Charlotte underground mine in Kalgoorlie. It also welcomed two new operations into its portfolio, Thunderbox and Carosue Damn in Western Australia.

Northern Star said that the delivery of synergies from the merger in 2H FY21 resulted in “both savings and improved productivity at numerous levels”.

In addition, the company highlighted that FY21 delivered “exceptional exploration results”, with Group resources increasing 15% to 56Moz and Group reserves increasing 8% to 21Moz over the 9 month period to 31 March 2021.

“This expanded inventory will underpin the Company’s announced strategy to grow production to 2Moz per annum by FY26,” the company added.

Northern Star declared a new dividend policy, targeting a total annual dividend payment of 20-30% of cash earnings.

The company will be paying a final fully franked dividend of 9.5 cents per share, bringing its full-year payout to 19 cents per share.

Management commentary

Northern Star managing director Stuart Tonkin commented on the results of the enlarged company, saying:

With the completion of the merger, we have established a simple, effective strategy based on our three production centres in world class locations.

We have a clear five-year pathway to annual production of 2Moz a year with a strong emphasis on ensuring it is profitable growth.

This strategy involves investing capital in those projects which will generate the strongest returns and actively managing our asset portfolio to maximise this outcome.

We have an enviable asset base and world-class inventory with significant scope for further organic growth. And as these result show, we have the balance sheet and cash strength to unlock the full value of these opportunities in a way which will drive strong financial returns.

What’s next for Northern Star?

Northern Star forecasts FY22 production of 1.55-1.65Moz at an AISC between A$1,475 to A$1,575.

Its long term goal is to achieve profitable production of 2Moz per annum by FY26.

The Northern Star share price will go ex-dividend on Monday, 6 September, with the 9.5 cents per share dividend paid out on Wednesday, 29 September.

The post Northern Star (ASX:NST) share price up after reporting 300% profit surge 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. 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 Medical Developments International (ASX: MVP) share price is lower after the company released its full-year results for FY21.

At the time of writing, shares in the company are trading for $3.93 – down 2.48%. The ASX All Ordinaries Index (ASX: XAO), meanwhile, is 0.48% higher.

Let’s take a closer look at today’s announcement.

Medical Developments share price slumps despite 27% gross profit jump

• Revenue increased 12.1% on the prior corresponding period (pcp) to $25.6 million and gross profit leaped 27.4% to $19.1 million.
• A net profit after tax (NPAT) of $379,000 in FY20 turned into a $12.6 million loss for the period. This was driven mostly by a $9.6 million rise in administration expenses and a new $8.9 million impairment expense.
• Net cash outflow from operating activities of $8.9 million.
• Basic loss per share of 18.4 cents. In the pcp it was a gain of 0.58 cents per share.
• No full-year dividend was paid, as was the case in FY20.

What happened in FY21 for Medical Developments

The first significant announcement of Medical Developments in FY21 was the announcement of its expansion into Europe. The Medical Developments share price jumped 14% on the news at the time. Chair David Williams called the news a “turning point” for the company.

In October, Medical Developments appointed Brent McGregor as CEO of the company. He previously worked for CSL Limited (ASX: CSL).

The company also acquired the distribution rights to its product in Australia in the financial year and implemented a capital raising scheme.

Medical Developments also said the COVID pandemic affected sales of its pain relief and respiratory products. This was because fewer people were out and about (and therefore getting injured) and there was less cold and flu in the community due to border restrictions.

What did management say?

McGregor gave the following comments on today’s results.

I am as confident as I was in November in the potential of MVP. Promising work has continued on our next generation product (“Selfie”) and we are beginning to think of other innovations to support strategic sales growth.

Finally, I acknowledge the resilience and commitment of the (now international) MVP team who have worked extraordinarily hard in a difficult and uncertain time to maintain the supply of our important products to patients.

What’s next for Medical Developments

Looking forward, Medical Developments anticipates “strong sales growth” in FY22. It says it will be driven by its expanding European presence and a “renewed focus” on the Australian market.

More updates will be provided at the October AGM.  Despite this outlook, the Medical Developments share price is slipping today.

Medical Developments share price snapshot

Over the past 12 months, the Medical Developments share price has decreased 34.2%. Year-to-date, it is down an even greater 40.8%.

Medical Developments has a market capitalisation of $287 million.

The post Medical Developments (ASX:MVP) share price falls on $13 million loss appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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 CSL Ltd. and Medical Developments International Limited. The Motley Fool Australia owns shares of and has recommended Medical Developments International 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 Bravura Solutions Ltd (ASX: BVS) share price is plummeting following the release of the company’s earnings for financial year 2021 (FY21).

Right now, The Bravura share price is $3.11, 17.29% lower than its previous closing price.

Bravura share price slumps/jumps on 11% revenue decline

Here’s how the wealth management, life insurance, and funds administration software provider performed through FY21:

• $243 million of revenue –11% less than that of FY20
• Earnings before interest, tax, depreciation, amortisation (EBIDTA) down 15% to $49.3 million
• Operating cash flow of $52.7 million
• Net profit after tax of $34.6 million – down 14% on that of FY20
• 6-cent per share final dividend (unfranked)

Barvura’s wealth management segment reported $160.1 million of revenue in FY21, 11% less than in FY20. Its funds administration segment’s revenue fell 12% to $82.9 million.

According to Bravura, its wealth management segment’s revenue was lessened due to the effects COVID-19 had on its UK professional services work, but it was offset by contributions from FY20’s acquisitions.

But not all was dire. Contracted reoccurring revenue in wealth management rose 30%.

The company’s funds administration segment’s revenue was also impacted by the effects of COVID-19, but most of its reduced revenue was attributable to a lower mix of licence fees.

Bravura ended the period with $73.6 million cash in the bank and $1.2 million of financial facilities used.

What happened in FY21 for Bravura?

FY21 was a productive period for Bravura and its share price.

The company acquired Delta Financial Systems for $42 million in October 2020.

It also signed an initial 7-year contract with Aware Super to allow the super fund to use Bravura’s Sonata Alta and Digital Advice.

Bravura also signed or renewed contracts allowing the use of its software with a UK financial institution, a global investment bank, an Australian trustees business, an Australian superannuation fund, a New Zealand life insurance firm, a UK platform, and UK platforms for microservices.

What did management say?

Bravura’s CEO and managing director Tony Klim commented on the news driving the company’s share price today. He said:

Despite what has undoubtedly been a challenging year, Bravura has achieved its guidance. The result reflects the unprecedented impact of COVID-19, particularly on UK project work and the sales pipeline. Despite the impact, we have responded to changing market conditions and evolved Bravura’s strategy to stay well ahead of client needs. This will lead to greater flexibility for clients in the speed of their implementation and will help them smooth their IT spend. In doing so, Bravura also expands its total addressable market and moves towards a higher proportion of contracted recurring revenue…

Bravura continues to win new clients and has further developed its market credentials by investing in [research and development]. Confidence is expected to continue to improve as the COVID-19 vaccines roll out and is well placed to take advantage of improving client demand.

What’s next for Bravura?

Here’s what might drive the Bravura share price in FY22:

As the COVID-19 pandemic is still affecting its key markets, the company warned its near term outlook is uncertain.

However, it expects FY22 to bring growth of its net profits after tax in the mid-teens, relative to FY21’s adjusted profit after tax of $32.3 million.

Bravura commented that its sales pipeline is strong and demand in the UK is starting to improve. The company gave a shoutout to the UK’s vaccine rollout, which it believes is helping to instil confidence. Additionally, the company believes there are large opportunities for its Sonata Alta offering in Australia.

Over this financial year, Bravura believes its business will be driven by demand for software-as-a-service, microservices, cloud, and subscription-based services.

Additionally, it has sped up its digital transformation through the pandemic and expects demand in the UK and South Africa to pick up in FY22 as projects delayed by COVID-19 resume.

Bravura share price snapshot

The Bravura share price has lost its gains for 2021 today. Right now, it’s 1.8% lower than it was at the start of this year. It is also 28% lower than it was this time last year.

The post Bravura Solutions (ASX:BVS) share price plunges 17% on FY21 earnings 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. owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions 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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