The Calix Ltd (ASX: CXL) share price is rocketing 13% higher into all-time record territory today after the company released its first-half FY21 results.

This brings its year-to-date returns to an eye-watering 108%. At the time of writing, the Calix share price is trading up 13.1% at $2.15.

Calix share price soars on accelerating growth 

Calix’s core technology is being used to develop more environmentally friendly solutions for advanced batteries, crop protection, aquaculture, wastewater and carbon reduction. Despite COVID-19, the company continued to grow sales from its municipal and industrial customers which are considered an essential service. 

In HY21, the company’s total revenue increased 114% to $16.27 million while operating profits ticked positive to $3.06 million compared to the $245,000 loss in HY20. 

Overview of Calix technologies 

Calix is developing multiple environmental business opportunities, all from one core technology. These industries/sectors include: 

• Water: Water treatment, aquaculture
• CO₂ Migration: Cement, line
• Biotech: Crop protection, marine coatings
• Advanced batteries: Advanced cathode and anode materials 
• Sustainable processing: Mineral and chemical progressing 

How it works

Its core technology involves grinding minerals to between one hundredth and one-thousandth of a millimetre in size, and then flash heating them in an externally heated reactor in a very short time. As trapped gases in the minerals bubble out of the particles, they create highly permeable, honeycomb-like structures in the particles.

Calix’s technology allows for the direct separation of CO₂, enabling it to be used in traditionally carbon dioxide intensive industries.

Calix is currently targeting all the above industries, seeking to expand revenues, margins, project execution and deal flow across multiple geographies. 

Water is a key segment for the business, having completed 3 US plant upgrades and commenced construction of a fourth US plant. The company signed its first memorandum of understanding (MOU) with a European partner with paid trials underway.

The company remains poised to re-establish aquaculture sales in China and targeting new markets post-COVID. This segment generated a majority of the company’s revenues, with water treatment sales up 159% on pcp to $9.14 million. 

Outlook

The Calix share price has been riding the momentum behind the renewables industry. The company will continue working towards the FY21 targets across each segment.

More reading

• Here’s why the Calix (ASX:CXL) share price shot 15% higher today

Motley Fool contributor Kerry Sun 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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Integra Group Ltd (ASX: ITG) shares are one of the better performers on the ASX market today after the company released its half-year results for the 2021 financial year. At the time of writing, the Integra share price is surging 15.7% higher to 33 cents.

What were the financial highlights?

The Integra share price is flying today after the company delivered a mostly positive result, despite operating as an independent company for less than 18 months. The company demerged from Cardno Limited (ASX: CDD) in October 2019 to focus on its core business strategies and reduce overhead costs.

In its half-year result for the six months ending 31 December, Integra reported total gross revenue of $210.7 million. This reflected an 8.8% decline compared to the $231 million achieved in H1 FY20. Contributing to the fall, fee revenue also sank to $157 million, a 7.1% drop from the comparative period.

Projects were largely wound down in the Asia Pacific region as COVID-19 impacted market conditions. The company’s Americas segment remained relatively flat due to project delays in its oil and gas business. However, construction materials saw a boom in infrastructure spend.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased over the period to $24.7 million. This represented a gain of 11.3% on a proforma basis. Not taking into account the tax and amortisation, EBIT grew to $9.6 million, up 21.5%. This was based on tighter cost controls and lower overhead expenses which helped offset the reduced fee revenue.

Net cash from operating activities soared to $17.9 million, a jump of 28.5% on the same time last year. The positive cash flow came from management’s focus on improving working capital management.

The company booked a net operating profit after tax of $5.6 million, a 55% advance on H1 FY20’s bottom line.

At the end of the calendar year, Integra had a cash balance of $22.5 million. Net debt excluding any accounting adjustments stood at $42.7 million.

In other news boosting the Integra share price, the board declared an unfranked interim dividend of 1 cent to be paid to eligible shareholders on 21 April 2021.

Outlook

Looking ahead, the company forecasts underlying EBITDA to be between $45 million to $49 million for the full year. Naturally, this is based on no unforeseen circumstances arising to affect current trading conditions, namely COVID-19 and currency exchange movements.

Integra anticipates rewarding shareholders with a final dividend of around 50% to 70% of total net profit after tax.

Furthermore, the board intends to pursue a capital management strategy which could include a share buy-back program. This would effectively reduce the number of shares on its registry, thus making each Integra share more valuable.

Integra share price and company snapshot

Established in 1968, Integra is an Australian-based engineering services company. The group is primarily a quality, testing and measurement business that provides an array of expertise. This includes construction materials testing, subsurface utility engineering services, and quality assurance for energy companies.

In the last 12 months, the Integra share price is down roughly 22% but is up 20% year to date. Integra shares took a turn for the worse during April last year, falling to a low of 16 cents. Since that time, its shares have gone on a rollercoaster ride all the way until the end of June. In recent months, the share price has stabilised around the 30-cent mark.

More reading

• How Tesla’s (NASDAQ:TSLA) Elon Musk just lost $19 billion
• Think Childcare (ASX:TNK) share price soars, beats FY20 guidance
• Why the Mayne Pharma (ASX:MYX) share price is dropping 5% today
• Why the Viva Energy (ASX:VEA) share price is up 5% today
• ASX cheats offered immunity… with one catch

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.

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Elon Musk, CEO of Tesla Inc (NASDAQ: TSLA) and three other companies, is famous for many things. Flamethrowers, shooting rockets (and cars) into space, smoking cannabis on-air during a podcast, or just tweeting rather random things all the time… Mr. Musk certainly knows how to capture the spotlight.

More recently, Musk has managed to add another feather to his cap. The title of ‘world’s richest person’. As recently as a year ago, it was unthinkable that anyone could dislodge Amazon.com Inc‘s (NASDAQ: AMZN) Jeff Bezos from this perch. But due to a staggering surge in the Tesla stock price over the past year, Musk managed to topple Bezos last month.

However, Musk has just lost that coveted title once again.

Musk gets a Tesla-driven downgrade

According to reporting in the Australian Financial Review (AFR) today, Musk lost a staggering US$15.2 billion ($19.2 billion) in net worth… just this week. That was largely a result of Tesla’s stock price falling to its lowest level yet in 2021 so far. Tesla has fallen more than 10% over the past week. Tesla is now roughly 20% below the company’s 52-week high of US$900 a share that was hit back in late January.

The volatility we are seeing in the price of Bitcoin (CRYPTO: BTC) also isn’t helping. Tesla made headlines a few weeks ago by purchasing more than US$1.5 billion worth of cryptocurrency on its balance sheet. Bitcoin has fallen around 10% over the past week. Although it remains at a higher level than when Tesla announced its purchase.

Despite Musk’s new place as the ‘silver medallist’ of the world’s richest people, I’m sure he won’t be too bothered. The AFR reports that his net wealth is still sitting at around US$183.4 billion. Although that’s a ways away from his wealth peak of US$210 billion in January, it’s only a touch behind Mr Bezos at US$186.3 billion.

Also assisting Musk’s massive wealth accumulation over the past year has been the recent re-valuation of one of Musk’s other (private) companies – SpaceX. According to the AFR, SpaceX is now valued at roughly US$74 billion after a recent $850 million capital raise. That’s a 60% increase since last August.

In addition to Tesla and SpaceX, Elon Musk also heads The Boring Company, as well as Neuralink (both private). The Boring Company is aiming to develop futuristic solutions to traffic congestion, mostly in California. It’s also the company behind Musk’s flamethrower line. Neuralink is an artificial intelligence company that is aiming to develop ways to connect the human brain to computers.

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• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• Amazon buying AMC isn’t as crazy as you think
• Why Tesla and Peloton Interactive led the Nasdaq lower Wednesday
• Bitcoin hits record high: Why Saxo says the cryptocurrency is here to stay
• Why the Fatfish (ASX:FFG) share price is diving 21% today

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Bitcoin and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Bitcoin and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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 Think Childcare Ltd (ASX: TNK) share price is currently up 7% after the company announced its FY20 result and told investors that it had beaten its guidance.

Think Childcare is one of the largest childcare operators in the country.

FY20 result impresses

Think Childcare’s group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $26.8 million was an increase of 89% compared to the prior corresponding period. It was actually 7% better than the guidance range it had previously given of $24 million to $25 million.

The company boasted that this result demonstrated significant momentum as it continues to execute on its strategy as Australia’s leading provider of premium childcare services to suburban families.

Management said that there has been a solid rebound in occupancy driven by recovery in existing enrolments and new enrolments. The enrolled occupancy peaked at 79%, with the attendance occupancy reaching 73%.

The business said that there has been a significant return from its marketing investment during the COVID-19 period with 43% of total enrolments being new at 31 December 2020.

Think Childcare said it recorded $30.1 million of underlying EBITDA in the 2020 calendar year, which was up 104% year on year, with an expected similar result in the 2021 year despite approximately $4 million of increased of corporate costs in the current year to support future growth.

The company finished with $22.9 million of cash at 31 December 2020.

Think Childcare dividend

The childcare business’ dividend for 2020 was 12 cents per share, representing a 30% cut compared to 2019.

Think Childcare share price

Over the last year, the Think Childcare share price is up 66% as it recovered from COVID-19 impacts. Since the start of September 2020, the Think Childcare share price is up 173%.

2021 Outlook

The childcare business said that the 2021 occupancy has started ahead of 2020 by 2%, driven largely by its incubation strategy. That’s a business called Think Childcare Development (TND) which is the largest developer of purpose-built leasehold childcare services to meet the Nido brand requirements.

TND builds up a childcare business before selling it to Think Childcare at a 75% occupancy rate at a valuation of around 4 times EBITDA. It has a pipeline of 26 leasehold sites to be developed over the next two to two and a half years. There are currently 10 new services that are in ‘trade-up’. Management believe this unique model eliminates business transition risk. This pipeline will generate $25 million of service-based EBITDA within three years.

Enrolments for the first eight weeks of 2021 are ahead of the same time as last year.

It expects to generate $26 million of underlying EBITDA in the current financial year.  That includes an investment of $2.4 million in new roles and the $1.6 million in the annualised impact of roles added in the 2020 calendar year to support future growth which will be subject to ongoing monitoring of trading performance.

More reading

• Why the Mayne Pharma (ASX:MYX) share price is dropping 5% today
• Why the Viva Energy (ASX:VEA) share price is up 5% today
• ASX cheats offered immunity… with one catch
• Here’s why the SeaLink (ASX:SLK) share price is shooting 17% higher
• Clinuvel (ASX:CUV) share price down despite recording 10th consecutive net profit

Motley Fool contributor Tristan Harrison 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 Mayne Pharma Group Ltd (ASX: MYX) share price is falling today after the specialty pharmaceutical company provided its slumping half-year results.

Despite the company launching new products and expanding its portfolio, Mayne Pharma’s revenue fell slightly, and losses increased. Shareholders are clearly disappointed today with the result, as the shares are down 5% to 29.5 cents a share.

What’s moving the Mayne Pharma share price?

It was very much a mixed bag of results for the pharmaceutical company. This was the case for all Mayne Pharma’s various operating divisions, including the Speciality Products Division (SPD), Metrics Contract Services (MCS), Generic Products Division (GPD), and Mayne Pharma International (MPI).

Specialty product sales were down 6% on the first half of FY20 but improved by 32% compared to the last half. The company’s generic product division suffered falling sales in the half. Gross profit for the GPD segment came in at US$27.5 million, a decline of 12% from last year. GPD performance was impacted by a continuation in price competitiveness across the portfolio.

On a more positive note, Mayne benefitted from an increase in its MPI segment. Sales increased by 10% compared to FY19, equating to $21.3 million. Gross profit for the segment also greatly improved to $6.9 million, an increase of 38% on the prior corresponding period (pcp). This improvement is a result of additional contract development projects and an increase in manufacturing revenues.

Mayne Pharma’s total revenue came in at A$209 million (down 8%) while underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) finished at $39.9 million (down 16%) for the half. Net loss after tax crumpled to a stark $181.3 million, compared to a loss of $18.2 million the prior year.

Impacts and accounting

Mayne Pharma’s CEO, Scott Richards, provided further details for the impacted results. A continued weakening of the US dollar and lingering challenges of COVID-19 are partly to blame for softer generic sales. Mr Richards further stated:

We continued to deliver substantial cost savings across the business with operating and gross development spend down $19m versus the pcp and have delivered a solid cashflow result that enabled net debt to be reduced by $40m. At the bottom line, the net loss after tax was impacted by a non-cash intangible asset impairment of the generic portfolio.

Mayne Pharma’s non-cash intangible impairments realised consisted of the following:

• An increase of $2.6m for capitalised development costs
• An increase of $3.3m for other intangible asset additions
• A decrease of $23.4m for specific impairments
• Notably, a decrease of $191.1m for CGU impairments
• A decrease of $28.3m for amortisation
• A decrease of $82.0m due to foreign currency translation with the AUD / USD exchange rate decreasing from 0.6877 on 30 June 2020to 0.7708at31 December 2020.

Mayne has several pharmaceutical products awaiting approvals from the FDA, TGA, etc. Management advised that future performance would depend on influential factors such as the US dollar, approvals, and competitors.

The Mayne Pharma share price has fallen 9.2% in the last 12 months. Placing the pharmaceutical company at a market capitalisation of $520 million.

More reading

• Why the Viva Energy (ASX:VEA) share price is up 5% today
• ASX cheats offered immunity… with one catch
• Here’s why the SeaLink (ASX:SLK) share price is shooting 17% higher
• Clinuvel (ASX:CUV) share price down despite recording 10th consecutive net profit
• Why the AMA Group (ASX:AMA) share price has crashed 7% today

Motley Fool contributor Mitchell Lawler 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 Viva Energy Group Ltd (ASX: VEA) share price is on the move today, rising 5.12% at the time of writing to $1.74 a share.

The catalyst for this healthy bump is Viva’s earnings report for the 2020 calendar year that was released this morning.

Viva is an energy company (as you might have gathered) that operates a fuel refinery in Geelong, Victoria. This refinery is one of only four in Australia and supplies more than 10% of Australia’s fuel needs.

The company is the exclusive supplier of fuels and oils to the Shell chain of service stations around the country. Viva also manufactures other petroleum products such as bitumen, paint, adhesives and industrial chemicals.

What did Viva Energy report this morning?

It was a mixed bag from Viva this morning. The company reported sales volumes of 12.34 billion litres, down 16% from 2019’s 14.7 billion litres.

That lead to group earnings before interest, tax, depreciation and amortisation (EBITDA) of $519.4 million, down 19.4% on 2019’s $644.5 million. Most of that fall came from Viva’s refining business, which saw earnings drop from $117 million in 2019 to a loss of $95.1 million.

Non-refining EBITDA (as the group was happy to point out) grew 16.5% from 2019’s $527.9 million to $614.5 million in 2020. Retail earnings delivered the bulk of that growth, rising 18.9% to $670.8 million.

Overall, Viva delivered a net profit after tax (NPAT) loss of $35.9 million, down from the profit of $135.8 million that it delivered in 2019.

The company highlighted that its divestment of a 35.5% stake in Waypoint REIT Ltd (ASX: WPR) earned a “significant one-off gain” of $179.23 million.

Viva also announced that the company would not pay a dividend for the 6 months to 31 December 2020. That is consistent with Viva’s dividend policy, seeing as the company posted a net loss for the year. Even so, Viva points out that it still returned $595 million to shareholders over the year. This included the interim dividend, special dividend, capital return and share buyback program.

Looking forward

Viva CEO Scott Wyatt has this to say on the company’s results and its future plans:

While the refining business was impacted by the substantial decline in both domestic and global oil demand, the actions taken to maintain production and bring forward major maintenance helped to mitigate losses… the refining outlook remains challenging given the longer-term impact to global oil demand from the pandemic.

Overall, the group has performed well during 2020 given the difficult trading conditions. The non-refining businesses have delivered significant growth over the prior year, and while the group results have been impacted heavily by the global weakness in the refining sector, we took steps to minimise the cash impacts from this event and worked closely with Government to improve the longer-term outlook.

The group has returned the bulk of proceeds from the divestment in Viva Energy REIT to shareholders and retains a strong balance sheet and underlying fundamentals to recover from the direct impacts of COVID-19 and pursue growth as it begins to return in 2021.

Going off the Viva Energy share price performance today, investors seem to be on board.

More reading

• ASX cheats offered immunity… with one catch
• Here’s why the SeaLink (ASX:SLK) share price is shooting 17% higher
• Clinuvel (ASX:CUV) share price down despite recording 10th consecutive net profit
• Why the AMA Group (ASX:AMA) share price has crashed 7% today
• Why is the Helloworld (ASX:HLO) share price slipping today?

Motley Fool contributor Sebastian Bowen 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 corporate watchdog will now offer immunity from prosecution for people who have manipulated the stock market.

On Wednesday, the Australian Securities and Investments Commission (ASIC) revealed its new immunity policy.

The new rules indicate that if certain criteria are met, those who conspired with others to breach the Corporations Act can apply for both criminal and civil immunity.

Such breaches can include serious share market offences like insider trading, market manipulation and dishonest conduct.

Those offences can attract up to 15 years in jail, a fine of $1 million or a penalty of 3 times the benefit derived from the crime.

“The Immunity Policy enhances ASIC’s ability to identify and take enforcement action against complex markets and financial services contraventions,” ASIC commissioner Sean Hughes said.

Applications can only be made by people, not corporations.

What’s the catch?

The biggest condition is that the person must be the first applicant who meets all the immunity criteria and reports the misconduct to ASIC before any investigation has started.

The immunity also doesn’t shield the applicant from any administrative (such as a ban on running companies) or compensation orders.

“Individuals who do not meet the criteria for immunity are still encouraged to cooperate with ASIC and will be given due credit for any cooperation received,” stated the commission.

“Any cooperation provided by an individual will be considered in determining whether to take administrative action against the individual.”

Share market offences are hard to convict

The immunity offer has been introduced to catch more cases of share market manipulation. Crimes such as insider trading and market manipulation are notoriously difficult to detect and prove in court. 

However, ASIC has had some wins in recent months.

Just this month, The Motley Fool reported a director of the company now called Weebit Nano Ltd (ASX: WBT) was sentenced to 12 months’ jail for illegally pumping up the share price.

A series of WhatsApp messages between Ananda Kathiravelu and alleged co-conspirator Ariel Malik showed the court they commissioned a third party to buy up shares immediately before a capital raising round.

In September, a former director of the company now known as Nova Minerals Ltd (ASX: NVA) and an alleged collaborator faced 10 years’ prison on charges of insider trading.

Don George Evans was accused of buying up 1.5 million shares in 2015 with non-public information about plans for a reverse-merger with a technology firm.

More reading

• ASX exec sentenced to jail for WhatsApp market manipulation

Motley Fool contributor Tony Yoo 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 market may be sinking lower but that hasn’t stopped the SeaLink Travel Group Ltd (ASX: SLK) share price from racing to a record high today.

In afternoon trade the travel and transport company’s shares are up 14% to $8.03.

At one stage, the SeaLink share price was up as much as 17% to $8.25

Why is the SeaLink share price racing higher today?

Investors have been buying SeaLink shares today following the release of an impressive half year result.

For the six months ended 31 December, the company reported record revenue of $570.8 million. This was up a massive 329.5% on prior corresponding period.

A key driver of this growth was the transformational acquisition of the Transit Systems Group. That $635 million acquisition completed in January 2020 and therefore wasn’t included in the prior corresponding period.

On the bottom line, SeaLink delivered a 231.9% increase in underlying net profit after tax and before amortisation to $48.1 million.

However, due to the dilution caused by its capital raising, the company’s earnings per share grew by a slower (but rapid) rate of 100% to 14.6 cents.

This allowed the SeaLink board to declare a fully franked interim dividend of 7 cents per share, which is up 7.7% on the prior corresponding period.

Management commentary

SeaLink’s CEO, Clint Feuerherdt, feels that this result demonstrates the strength and resilience of the business through diversification.

He commented: “We were able to successfully navigate our way through this period by working closely with our state government clients, staff and customers. It was pleasing that all Australian bus operations and services continued at full scheduled timetables in all states during the period and this is reflected in the trading results.”

Mr Feuerherdt revealed that it was a similar story in the UK market. Pleasingly, the lockdown has not impacted its services.

“In London, the six-month period has been dominated by the context created by the continuing effects of COVID-19 in the United Kingdom, which ended the half-year with another national lockdown as a new strain of the virus emerged. Despite this, services continue to operate and operational performance is being maintained.”

Outlook

While trading conditions remain challenging, management appears optimistic on the company’s prospects.

It said: “The future outlook for SeaLink is bright with our solid base of diversified businesses across Australia in the public bus, light rail and marine transport, tourism and accommodation sectors.”

It also notes that “some of the structural cost base changes and scheduling efficiencies that were pursued through the first COVID-19 impact period will remain and be an ongoing benefit to the business.”

Finally, SeaLink isn’t ruling out further acquisitions in the future.

It concluded: “We continue to review and pursue opportunities that enhance, leverage and complement our core strengths. Mergers and acquisition activity is a possibility as markets are constantly being evaluated.”

No guidance has been given for the full year but current trading results are slightly ahead of expectations.

More reading

• Why Bega, Blackmores, IDP Education, & SeaLink shares are zooming higher

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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Clinuvel Pharmaceuticals Limited (ASX: CUV) announced its tenth consecutive half-year profit today.  Despite this news, at the time of writing, the Cinuvel share price was down 0.6% to $19.92.

We take a closer look at the announcement and what this means for the Clinuvel share price.

Clinuvel records tenth consecutive half-year profit

Clinuvel Pharmaceuticals released its half-yearly report earlier today.

The company’s report highlighted Clinuvel recording its tenth consecutive half-year profit. For the 6 months ending 31 December, Clinuvel saw net profit after tax (NPAT) soar 962%. Leading to a record $6.5 million.

The company also reported improved revenue for the half-year of $15.743 million, 58% higher from the prior corresponding period.

For the first-half of FY21, Clinuvel also saw positive earnings per share of 13.3 cents per share. This marked a 956% increase from the same period last year.

In addition, the company noted a strong balance sheet with no debt and $78 million in cash. Despite the strong equity position, Clinuvel did not declare an interim dividend.

Chief financial officer, Darren Kenny, noted that “The company is in a sound financial position to continue to grow and fund its expansion. We are investing in our R&D and clinical programs and progressing our evolution into a diversified pharmaceutical company”.

What fuelled the record profit?

Despite global economic uncertainty under the COVID-19 pandemic, Clinuvel recorded strong commercial sales for the first half of FY21.

On a constant currency basis, Clinuvel recorded an 87% increase in revenue from the distribution of its flagship SCENESSE product. The company attributed the lift to commercial sales in the US, earlier ordering, and new patients.

Clinuvel’s management also cited the company’s efficient business model for the strong half-year result.

The company also highlighted additional clinical development plans for SCENESSE, with 2 new clinical programs. The expansion follows the company’s recent announcement earlier this month, which saw SCENESSE added to the Israeli ‘National Health Basket’ (NHB).

How has the Clinuvel share price responded?

Clinuvel is a global biopharmaceuticals company that develops drugs designed for the treatment of severe genetic and developmental skin disorders. The company’s flagship Scenesse drug is designed to prevent phototoxicity in patients with erythropoietic protoporphyria (EPP). 

The Clinuvel share price was trading around 4% higher today, hitting an intra-day high of $20.88.

More reading

• Clinuvel (ASX:CUV) share price pinches down after Israeli breakthrough
• The Clinuvel (ASX:CUV) share price is dipping today

Motley Fool contributor Nikhil Gangaram 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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AMA Group Ltd (ASX: AMA) shares have plunged today following the release of the smash repairer’s half-yearly results for FY21.

At the time of writing, the AMA share price is trading at 65 cents, down 7.14% on yesterday’s close.

What’s weighing on the AMA share price today?

The autobody repairer announced a net profit of $4.6 million for the half-year ending 31 December. This compares to a $12.1 million loss for the prior corresponding period (pcp).

While the results look promising, they come off the back of $14.2 million net profit from the one-off sale of the ACAD and Fully Equipped businesses. The company also received $28.4 million from the Australian and New Zealand governments’ wage subsidy programs.

Employee expenses for the company were down only $2.4 million on the pcp. Without the wage subsidies, employee expenses would have been up $26 million.

At the same time revenue from continuing operations was up $71 million on the pcp for a total of $435 million.

COVID-19’s impact on AMA

The company attributed its result to the “challenging market conditions” of the COVID-19 pandemic.

“[Government] restrictions affected one of the key external drivers of our business, kilometres travelled.” AMA Group highlighted the Victorian lockdown in particular as a financial hindrance.

Post-lockdowns, however, the company said it believed it had benefitted from the restrictions, stating:

“The Group benefited from the preference to use private transport over public transport and the shift to domestic driving holidays as opposed to international travel.”

In a presentation to investors, AMA did warn that the prospect of state-border closures and higher working from home rates could adversely impact the business.  At the same time, the presentation outlined its belief that the vaccine rollout could “hasten the return to normal”.

AMA’s feud with former CEO

Andrew Hopkins resigned as CEO of AMA Group on 31 January 2021, effective immediately. The resignation followed the company’s board of directors receiving a report in relation to allegations made by an employee of the company. It is unclear if Hopkins was the subject of the report.

The company is pursuing Hopkins for a total of $2.4 million of reimbursement – comprised of a $1 million bonus and $1.4 million employee loan. The company claims it has not received a single cent back from Hopkins as of the release of the report.

Carl Bizon was appointed as the new CEO on 1 February.

Future outlook

On 5 February AMA Group acquired truck repairer National Central. The company stated the purchase aligned with its “strategic direction of expanding into the heavy vehicle collision repair industry.”

According to the Federal Chamber of Automotive Industries (FCAI), total car sales were down 13.7% in calendar year 2020 compared to 2019. FCAI attributed the decline to the economic downturn caused by the COVID pandemic. However, vehicle industry analytics platform Datium Insights expects an uptick in car sales this calendar year, which could bode well for shares like AMA Group.

The company is also forecasting an increase in turnover due to the La Niña weather phenomena, as wetter driving conditions increases the likelihood of accidents on the road.

The AMA share price is down more than 20% in 2021. On current prices, the company has a market capitalisation of $519 million.

More reading

• These ASX shares are helping this fund manager smash the market
• AMA (ASX:AMA) share price rises as former CEO chased for $1 million
• Here’s why the AMA (ASX:AMA) share price is crashing lower today

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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