The Commonwealth Bank of Australia (ASX: CBA) share price will be on watch on Tuesday.

This follows the release of an announcement after the market close on Monday.

What did CBA announce?

This afternoon Australia’s largest bank announced that the Australian Securities and Investments Commission (ASIC) has commenced civil proceedings in the Federal Court against Commonwealth Securities Limited (CommSec) and Australian Investment Exchange Limited (AUSIEX). Both businesses are subsidiaries of CBA.

According to the release, the proceedings relate to errors that were reported to ASIC by CommSec and AUSIEX.

CommSec and AUSIEX have engaged extensively and co-operatively with ASIC. The bank notes that the regulator has also filed with the Federal Court and published on its website a Statement of Agreed Facts and Contraventions. This recognises their co-operation and that CommSec and AUSIEX do not intend to defend the proceedings.

What are the proceedings?

The proceedings relate to issues in respect of regulatory data requirements, trade confirmation requirements, best execution requirements, and reconciliations of client monies.

In addition to this, for the CommSec business only, the proceedings relate to issues in respect to brokerage payments, warrant agreement forms, and automated order processing filters.

Commonwealth Bank advised that the issues arose from errors such as information technology system coding or systems issues, human error, and/or data entry errors. The only issue where there was any direct financial loss to some customers was in relation to instances of brokerage overcharging.

In response to this, CommSec has paid total remediation of $6.5 million (including interest). This comprises refunds and other compensation payments to customers affected by the issues.

CommSec’s Managing Director, Richard Burns, commented: “We apologise to our customers who were impacted by our mistakes. These errors never should have happened. We acknowledge the importance of meeting our compliance obligations and we are committed to continuing to invest in strengthening our systems and procedures.”

What now?

CommSec and AUSIEX have agreed with ASIC to enter into a court ordered compliance program.

This compliance program will include a review by an independent expert, and is aimed at ensuring that all the remedial work has been adequately completed and ongoing systems and controls are effective.

On Monday, the CBA share price was in fine form. It rose 3.1% to $84.11. This leaves the bank’s shares trading within sight of their 52-week high.

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• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
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Motley Fool contributor James Mickleboro 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 Estia Health Ltd (ASX: EHE), Japara Healthcare Ltd (ASX: JHC), and Regis Healthcare Ltd (ASX: REG) share prices are mixed today after the Australian government’s Royal Commission into Aged Care Quality and Safety delivered its final report.

Estia shares closed 7 cents lower to finish a $2.07. Japara closed the day 4.77% higher to finish at 81 cents per share. Regis shares closed 0.25% higher to end the day at $1.98.

All 3 ASX shares experienced a fall in the half-hour before closing – while the Prime Minister was speaking on the report.

Key points and recommendations 

The two commissioners have come up with separate recommendations in some instances. 

• The Aged Care Act 1997 should be repealed and replaced with a new Act to come into force by no later than 1 July 2023.
• Both Commissioners Pagone and Briggs agree the Aged Care Quality and Safety Commission (ACQSC) should be abolished and replaced. As well, both agree a new pricing authority should be established to oversee aged care.
• New minimum requirements to be implemented for staffing – including a Certificate III qualification and English requirements.
• The award wage for aged care employees should be increased, and 60% of the yearly percentage increase to the award wage should be subsidised by the government.
• One registered nurse (RN) should be on-site at all times by 1 July 2024 and all residents should be able to see the RN for a minimum of 44 minutes each day on average. 30% of the yearly percentage increase for the RN’s minimum wage should be subsidised by the government.
• The Basic Daily Fee should immediately increase by $10 per day per provider.
• Aged care providers finances should come under the oversight of the Australian Prudential Regulatory Authority.
• Commissioner Briggs recommends refundable deposits be abolished by 2025 and replaced with user-fee, means tested system subject to the pricing authority.

Response from the government

In a statement released to the press today, Prime Minister Scott Morrison and Health Minister Greg Hunt stated:

I called this royal commission to ensure our oldest and most frail Australians could receive the respect and care that supports their dignity and recognises the contribution that they have made to society.

Today the Australian government is continuing to drive reforms with additional funding of $452.2m to address immediate priorities in the sector.

These immediate steps will drive improved quality of care by strengthening aged care provider governance, and improved oversight of home care which will ensure senior Australians and taxpayers are getting value for money.

It will provide additional financial assistance for residential care providers so they can improve care, whilst building the much-needed workforce of the future to support Australians who want to age in their own homes.

The government did not indicate how many and which of the recommendations it would follow.

How did Estia, Japara and Regis respond?

In Volume 2 of the report, Commissioners Casey and Briggs singled out an assault that occurred at Japara’s Mitcham facility. The Commissioners noted the Mitcham facility as “an organisation that was determined to avoid accountability for its actions.”

In a media statement released today, Estia Health CEO Ian Thorley responded to the report:

The Commission has been a thorough and valuable process and we believe, as a result, the entire sector will be better positioned to provide a sustainable aged care system that meets the needs of older Australians in the future.

As the report has just been released, we will take some time to review it in its entirety and we will respond more fully once we have completed our review.

Japara and Regis did not respond to Motley Fool Australia’s request for comment before publication.

ASX aged care share price snapshots

While today’s results are lukewarm at best for Estia, Japara, and Regis, the shares are still trending higher overall.

As the COVID-19 pandemic was in its early stages, the Estia, Japara, and Regis share prices took a battering. Since then, Estia and Regis shares have exceeded their pre-pandemic prices. The exception being Japara, which is currently 9 cents lower than this time last year.

More reading

• What did the Japara (ASX:JHC) share price do after a big HY21 profit plunge?
• Regis Healthcare (ASX:REG) share price down despite paying a HY21 dividend
• Why the Estia Health (ASX:EHE) share price is swinging around
• 5 things to watch on the ASX 200 on Tuesday
• Why BHP, Estia Health, HUB24, & South32 shares are dropping lower

Motley Fool contributor Marc Sidarous 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 Pointerra Ltd (ASX: 3DP) share price was on a tear through February as its share price rose an astounding 65.31%. Shares in the company pushed higher again today as the company released its half-yearly report.

The Pointerra share price was trading at 83 cents, up 2.47%, at the market’s close today.

The company is engaged in the development and commercialisation of its 3D geospatial data technology. The company’s technology offers real-time, dynamic web viewing tools for providing access to user’s data through the cloud.

How did Pointerra perform in the half?

For the period ending 31 December 2020, Pointerra reported impressive revenue growth, recording revenue of $1.56 million, up 218% on the prior half. Customer receipts also increased strongly, climbing by ~$650,000 to $1.14 million.

The company’s annual contract value (ACV) metric more than doubled. During the half-year, ACV grew to US$6.88 million, reflecting the impact of new customer acquisitions coupled with growth spend by existing customers. 

Evolving platform

Pointerra’s flagship cloud platform received notable enhancements in the half. The company delivered upgrades across the product portfolio of data processing, data and analytics as a service.

The 3D mapping company also announced the soft launch of its 3D data marketplace solution, 3Dinsight.ai. The platform is an artificial intelligence (AI) powered cloud marketplace conceived to help data acquisition companies monetise their 3D data sets. The solution will also facilitate market-driven demand for capture programs, useful for both infrastructure companies and governments.

Moreover, the company made a number of investments in people across the half. Pointerra hired in the development and sales teams to provide additional scale in meeting the demand for solution development. As such, the headcount increased from 12 to 20 full-time employees. Additional appointments will continue in the future as the business scales up its platform capability and customer acquisition.

About the Pointerra share price

Shares in the company exploded in July after notable tech investor Bevan Slattery took a stake in the company. The placement of $2.5 million has helped drive the Pointerra share price more than 1,560% higher.

More reading

• 2 exciting small cap ASX shares to watch
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Daniel Ewing owns shares of Pointerra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited. The Motley Fool Australia has recommended Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Pointerra (ASX:3DP) share price surged 65% in February appeared first on The Motley Fool Australia.

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The Seafarms Group Ltd (ASX: SFG) share price is falling sharply today as the company announced its half-year report late on Friday. The aquaculture company also released a market update.

The Seafarms share price was trading down 5.68% at 8.3 cents at the close of market today.

Why is the Seafarms share price sinking?

In its release, management said that the overall financial performance for the period reflected the company’s investment in pursuing its expansion in aquaculture operations. As such, Seafarms reported a large decline in revenue, and its net loss widened.

For the six months ending 31 December 2020, Seafarms reported revenue of approximately $14.937 million (down 30.7%) and a net loss of $12.8 million. The results reflect the cash contributions of Queensland operations while fully expensing all Project Sea Dragon (PSD) development costs.

The loss was also affected by a significantly reduced pond stocking in response to market uncertainty and COVID-19. In regards to PSD, the high level of required investment to develop the plant and train staff is proving expensive, with total costs coming in at more than $138 million to date.

As a result of the reduced pond stocking, total production for the period was down 47% from 1H FY20. Coming in at 321 tonnes. This reduction in stocking drove structural change across Queensland operations.

The company advised its cash balance reduced from $6.466 to $5.523 million across the two periods.

Project Sea Dragon

Seafarms is seeking to transform itself from Australia’s largest prawn producer into a low-cost global producer. In doing this, it is continuing to progress Project Sea Dragon in Northern Australia.

While not providing specific details on PSD, Seafarms stated that the project was ‘shovel ready’:

PSD is a world-class industrial-scale Tier 1 project with an operating life of 90 years which will be developed and constructed in stages with production ponds located at Legune Station in the Northern Territory. 

Once completed, the company said PSD would target high-quality year-round volumes for export markets and have a production capacity of up to 150,000 tonnes of prawns.

Looking ahead

Seafarms provided an outlook in its report, outlining its expectations for 900 tonnes of production this year. This is in line with the reduced stocking strategy for FY2021.

Furthermore, the company will look to Japan and Europe for investment in its sea dragon project.

More reading

• Why the AppsVillage (ASX:APV) share price soared 19% today
• Shriro (ASX:SHM) share price tumbles 7% despite profit surge
• Is it time to buy these 2 hot ASX healthcare shares?
• Where to next for the A2 Milk (ASX:A2M) share price?
• Here’s why the Electro Optic (ASX:EOS) share price jumped 19% today

Motley Fool contributor Daniel Ewing 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 AppsVillage Australia Ltd (ASX: APV) share price was sent soaring today following a capital raise announcement. During late-afternoon trade, the software-as-a-service (SaaS) solutions provider’s shares were up 23.8% before closing the day up 19% at 13 cents per share.

Let’s take a closer look and see what AppsVillage announced.

What’s driving the AppsVillage share price higher?

The AppsVillage share price is firmly in the green today as investors appear excited about the company’s latest prospects.

According to its release, AppsVillage reported a number of updates in regards to raising funds to execute its growth strategy.

The company stated that it has successfully secured binding commitments from existing institutional investors through a share and option placement.

Offered at a price of 11 cents apiece, the company issued 5,454,546 ordinary shares to raise $600,000. The new shares will be allotted on this week on Friday 5 March. In addition, those investors who participated in the placement also have an attached option of 1 share for every 2 shares received. The issue is available at nil price, exercisable at 13.5 cents expiring on 25 February 2024.

Furthermore, the company revealed that it has completed the directors’ investments of $200,000 as announced last August following shareholder approval. AppsVillage issued 1,339,286 ordinary shares to non-executive chair Bahram Nour-Omid for $150,000. The remaining $50,000 came from non-executive director Andrew Whitten for the allotment of 446,429 ordinary shares.

Pleasingly, AppsVillage was granted conditional approval to list on the TSX Venture Exchange (TSXV) (Toronto Stock Exchange). As part of the dual listing process, the company plans to raise a minimum of CA$5 million to satisfy the usual standard conditions.

So far, AppsVillage has received signed non-binding indicative term sheet commitments for a total amount of US$2.5 million. This came from an existing institutional shareholder and a new Israeli-based investment fund, whom were issued an indicative price of 16 cents each. The company noted that it is working with regulatory authorities to ensure it satisfies the listing criteria within the required 90-day period.

What did the head of AppsVillage say?

AppsVillage founder and CEO Max Bluvband hailed the strong backing, saying:

We are very pleased with the support we have received from our largest and existing shareholders and Directors of the Company as we continue to execute on our growth strategy. The proposed TSXV listing has generated good interest from potential investors and we look forward to completing that process in the near term.

The AppsVillage share price is down more than 34% since this time last year.

More reading

• Why is the Seafarms (ASX:SFG) share price sinking 5% today?
• Shriro (ASX:SHM) share price tumbles 7% despite profit surge
• Is it time to buy these 2 hot ASX healthcare shares?
• Where to next for the A2 Milk (ASX:A2M) share price?
• Here’s why the Electro Optic (ASX:EOS) share price jumped 19% today

Motley Fool contributor Aaron Teboneras 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.

The post Why the AppsVillage (ASX:APV) share price soared 19% today appeared first on The Motley Fool Australia.

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Shriro Holdings Ltd (ASX: SHM) shares were tumbling today after the consumer product distributor announced its 2020 full-year (FY20) results late on Friday. By today’s market close, the Shiro share price had fallen 6.7% to 97.5 cents. 

Let’s take a look at how the company has been performing.

Shriro share price falls on 180% profit increase

The Shriro share price was tanking today despite the company reporting that total revenue across the group increased by 11.2% to $191.3 million during FY20. Shriro markets and distributes a range of brands spanning kitchenware, range hoods, instruments, watches, and BBQs. Although revenue was subdued during the first half due to COVID-19 lockdowns, the second half rebounded strongly.

The company noted that with people unable to travel, more spending went towards household items. Shriro witnessed significant growth in some of its products, such as the Everdure by Heston Blumental range, which grew by 65.2% compared to the prior corresponding period. 

Shriro also continued with its cost-cutting strategy during the year. Operating expenses declined by 11.8%, excluding government subsidies. The combination of increased revenues and reduced costs led to a substantial lift in profit. The company noted a 180% increase in net profit after tax to $18.2 million.

As a result of the plentiful profits, Shriro declared a final dividend of 4 cents per share fully franked. 

Outlook 

In looking to the future, Shriro remains cautious of further COVID-19 lockdowns. However, the company intends to reinstate its marketing expenditure in line with previous years to support future growth.

Additionally, management expects to add additional resources to capture market share. This is assisted by the continuing success of the Omega range, which was rolled out to retailers in the first quarter.

Furthermore, Shriro foresees international BBQ revenue to grow significantly as brand awareness of the Everdure range continues to grow.

At the end of December, the company recorded no debt and $17.6 million of cash on hand. 

Foolish takeaway

Despite underperforming today, the Shriro share price has risen by around 19% year to date and by more than 40% over the past year. Based on the current share price, Shriro has a market capitalisation of around $93 million.

More reading

• Why is the Seafarms (ASX:SFG) share price sinking 5% today?
• Why the AppsVillage (ASX:APV) share price soared 19% today
• Is it time to buy these 2 hot ASX healthcare shares?
• Where to next for the A2 Milk (ASX:A2M) share price?
• Here’s why the Electro Optic (ASX:EOS) share price jumped 19% today

Motley Fool contributor Mitchell Lawler owns shares of Shriro Holdings Ltd. 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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There are some ASX healthcare shares that are creating a lot of growth at the moment. Is it time to buy them?

Healthcare is one of the largest sectors on the ASX with a number of major companies with global earnings such as CSL Limited (ASX: CSL), Ramsay Health Care Limited (ASX: RHC) and Cochlear Limited (ASX: COH).

But there are some smaller ones that are expanding their market share and growing revenue:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology business that provides clinical functions for screening clinics provide feedback on breast density, compression, dose, and quality, while its enterprise-wide practice-management software helps with productivity, compliance, reimbursement and patient tracking.

In the recent update for the third quarter of FY21 it said that it generated its largest-ever third quarter sales performance, with annual recurring revenue (ARR) reaching NZ$20.7 million at the time. Its average revenue per user (ARPU) at US$1.22 – up 5% from the second quarter.

Also, last month, the ASX healthcare share announced the acquisition of CRA Health. It’s described as an industry leader in breast cancer risk assessment spun out from Massachusetts General Hospital, a Harvard Medical School teaching hospital.

For Volpara, CRA adds ARR of over US$4 million, average revenue per user (ARPU) of around US$1.70 and coverage of around 6% of US breast screenings.

CRA’s software is integrated with the major electronic health record (EHR) and genetics companies.

Volpara will have ARR of around US$17.5 million and at least one product used in over 30% of US breast screenings.

Broker Morgans has a share price target for Volpara of $1.92, suggesting potential upside of close to 40%. The broker is a fan of the CRA acquisition and likes the increasing market share of women breast screenings.

Pro Medicus Ltd (ASX: PME)

Despite recent share sales by the founders of the business, the share price keeps heading higher.

Pro Medicus describes itself as a leading medical imaging IT provider. It offers a full range of radiology IT software and services to hospitals, imaging centres and health care groups worldwide. Visage Imaging is the key software offering.

The ASX healthcare share has been successfully winning many of the large contracts that have been on offer in both Europe and North America. This will drive earnings higher in the coming years, as they are multi-year contracts.

In the recent FY21 half-year result it reported that revenue rose 7.8% to $31.6 million, underlying profit before tax grew 25.9% to $18.8 million and net profit after tax (NPAT) grew 12.4% to $13.5 million. The earnings before interest and tax (EBIT) margin was around 59%, its cash reserve grew $7.5 million to $50.9 million and the interim dividend was increased by 16.6% to $0.07 per share.

Morgans is not convinced that the current Pro Medicus share price represents good value. It has a share price target of $41.30 for the ASX healthcare share. However, it said the result was strong as the business recovers from COVID-19 impacts.

The broker believes that Pro Medicus can generate earnings per share (EPS) of 42 cents for FY22, meaning it’s valued at 110x FY22’s estimated earnings.

More reading

• What you need to know about the CSL (ASX:CSL) dividend
• Top ASX shares to buy in March 2021
• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• 3 of the best ASX 200 results from last week
• 2 fast-growing small cap ASX shares to watch

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. and VOLPARA FPO NZ. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Pro Medicus Ltd., Ramsay Health Care Limited, and VOLPARA FPO NZ. 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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It seems like the A2 Milk Company Ltd (ASX: A2M) share price has been left out to spoil. The last 9 months have been devastating for the company, as pantry destocking and weak China-related sales have seen its growth turn backwards. The A2 Milk share price has followed suit, falling close to 50% across the same period.

Here’s a look at A2’s recent half-year results, and what broker Bell Potter thinks could be in store for the company’s share price.

A2 Milk’s recent performance

A2 Milk’s half-year results weren’t pretty. The company’s growth metrics across the board went backwards in an alarming double-digit fashion. Revenue, operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) and operating net profit after tax were all down a respective 16%, 33%, and 36%. 

The company’s lease-adjusted operating cash outflow came in at NZ$10.8 million, compared to the $159.9 million inflow in 1H20. This marks the company’s first negative operating cash flow since 1H16. 

There were some small positives throughout the half-year results. This included strong growth within its liquid milk segment, growing 16.3% to $86.9 million with a record Australian market share of 11.7%. Liquid milk now represents 18% of the company’s earnings, compared to 13% in the half ending June 2020. 

Elsewhere, the company lifted its Mother & Baby Store distribution points in China to 22,000 from 19,100 at FY20. Its rising footprint in China has translated to $213.1 million in sales, up 45.2%. 

The US remains a focal point for A2, with distribution points expanded to 22,200 points from 20,300 at FY20. 

Despite the small wins, the company’s infant nutrition channels drive a majority of its earnings growth, which slumped from $765.7 million in 2H20 to $526.1 million in 1H21.

Looking ahead, FY21 revenue was forecast to be approximately NZ$1.4 billion with an EBITDA margin of 24–26%, implying EBITDA of NZ$336 million to $364 million. This guidance was also heavily caveated as relying on a material recovery in the last quarter of FY21. 

Bell Potter’s A2 Milk share price target 

Bell Potter updated its A2 Milk share price target on 25 February to $8.65, which represents a downside of 3% to its share price at the time of writing.

Into this share price target, the broker incorporated A2’s holding of Synlait Milk Ltd (ASX: SM1), a value for the expected upside in China based on projected stockists and sell-through rates, and a value for the US opportunity.

The broker commented that “A2 Milk is by no means cheap, neither is the sector and to a degree the material under performance of A2 Milk reflects this.” 

More reading

• Top brokers name 3 ASX shares to sell next week
• Do brokers think the A2 Milk (ASX:A2M) share price is a buy or sell?
• 3 ways A2 Milk (ASX:A2M) is planning a share price recovery
• ASX 200 rises 0.8%, A2 Milk sinks, Zip drops
• Why a2 Milk, Service Stream, TPG, & Zip shares are tumbling lower

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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 Electro Optic Systems Holdings Ltd (ASX: EOS) share price has surged nearly 19% in today’s trading session. By the market’s close, the Electro Optic share price was trading at $5.29.  

Let’s take a look at what’s been happening for the defence and aerospace company.

What fuelled the Electro Optic share price today?

The Electro Optic share price has bounced strongly in today’s trading session. The company’s shares were under pressure late last week after it reported its full-year financial results for FY20.

Apart from a Change of Directors Interest notice, Electro Optic did not release any highly sensitive news today. As a result, we can only posit that investors are reinterpreting the company’s financial results or regarding the fall in its share price as a buying opportunity.

The Electro Optic share price was down more than 9% at one point on Friday, before recovering slightly.

How has the company been performing?

For FY20, Electro Optic Systems recorded a net loss after tax of $25.6 million for the full year. The defence technology company cited the COVID-19 pandemic as having a widespread impact on its operations.

The company noted that travel bans had caused major disruptions to its supply chain. In addition, lower volumes and split shifts reduced efficiencies which resulted in production running at sub-optimal levels.

As a result, investment into inventory resulted in a negative operating cash flow of $109 million for the full year.

Despite reporting a net loss, Electro Optic did highlight a few positives for the period.

The company delivered a 9% increase in revenue to $180 million from ordinary activities. In addition, Electro Optic noted that $40 million in revenue will be pushed into FY21 due to delivery issues in FY20.

The company also cited its strong capital position, with Electro Optic holding $65.9 million in cash and cash equivalents.

Foolish takeaway

Electro Optic Systems specialises in the development, manufacture and sale of various technology platforms. The company operates in three different sectors being defence, space, and communications.

Defence represents the largest revenue segment for the company, comprising more than 80% of its revenues in FY20. 

Electro Optic did not provide guidance for 2021, however the company’s management noted that trading should be more predictable than during 2020.

More reading

• The Electro Optic (ASX:EOS) share price slumps 5% as net profits plummet
• Why the Etherstack (ASX:ESK) share price will be on watch today

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings 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 TPC Consolidated Ltd (ASX: TPC) share price soared 23.8% higher today to close the trading day at $2.60 a share.

With nothing new released to the market today, let’s look at the energy company’s half-year (1H21) report released after the close of trade on Friday to see what might be moving the TPC share price today.

Half-year financial highlights

The company reported a 0.5% revenue gain with 1H21 revenue totalling $44.7 million.

Earnings before interest, tax, depreciation and amortisation (EBITDA) was $6 million for the 1H21 period. This is a 22.4% improvement compared to $4.9 million in the previous corresponding period (pcp).

TPC posted an earnings per share (EPS) of 33.80 cents for 1H21 compared to 21.96 cents for 1H20.

The interim dividend for the period was 8 cents a share.

Net profit after taxes (NPAT) zoomed up 54.1% from $2.5 million posted at the end of 1H20 to $3.8 million at the end of 1H21.

Current assets also came in higher, jumping from $9.7 million for 1H20 to $28.6 million for 1H21, a 51.3% gain.

As of 31 December 2020, cash and bank deposits were $8.8 million, up 186.4% compared to pcp.

Looking ahead

In its half-year report, the company released the following statements regarding its outlook.

The half-year started off being especially uncertain with the onset of COVID-19. We were monitoring business activities both internally and externally carefully. Our main concern was the ability of our customers to continue to pay their energy bills in light of business closures and employment uncertainties.

We are pleased to report that, as a result of our diligence, the net impact was manageable although we continue to be cautious until full return to normalcy; post-COVID-19 environment.

TPC further noted that the company continued to make headway in the renewable energies market. It expects to share its progress with the market later this year.

Revenues and earnings are both believed to be on track to meet investor expectations.

TPC share price snapshot

The TPC share price has gained 100% over the past year and has hiked up 60.9% in the past month alone.

The company’s approximate market capitalisation is $23.9 million, with an estimated 11.4 million shares outstanding. 

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Motley Fool contributor Gretchen Kennedy 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.

The post Here’s what sent the TPC (ASX:TPC) share price powering 23% higher today appeared first on The Motley Fool Australia.

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