Technology company Connexion Telematics Ltd‘s (ASX: CXZ) share price leapt 42% in morning trade today following the release of the company’s full year results for the year ended 30 June. At the time of writing, the Connexion share price was trading at 2.7 cents, up from yesterday’s closing price of 1.9 cents.

Why is the Connexion Telematics share price on the move?

The Connexion share price surged after the company reported total revenue of $8.2 million. That was up 131% from the $3.6 million total revenue reported in FY19.

Net profit after tax (NPAT) also gained strongly, up 587% from the previous financial year to $3.2 million.

Net cash flow grew by 254% to $1.49 million while diluted earnings per share (EPS) leapt 537%. Working capital increased 256% year on year, to $3.35 million.

The company’s tech and support team also expanded by 33%.

Connexion announced that its growth initiatives will be pursed in the 2021 financial year.

What does Connexion do?

Connexion Telematics is an Internet of Things (IoT) technology company working to revolutionise smart car technology. It has commercial agreements with lead players in the automotive industry for its proprietary smart car technologies.

Connexion plans to roll out its products into millions of vehicles over the coming years. It has developed two flagship Software as a Service (SaaS) products, including CXZ Telematics, a cloud-based, integrated vehicle management system. This simultaneously tracks – in real time – all key performance indicators of a vehicle.

The company’s OnTRAC CTP/CTA subscription base averaged 69,000 vehicles for the 2020 financial year.

What did Connexion say?

The company reported it managed to build on positive momentum achieved in 2019 to deliver strong results, despite all the uncertainty throw up by the COVID-19 pandemic.

It continued to provide its SaaS offering, OnTRAC, to General Motors, Courtesy Transportation, and Cadillac’s Courtesy Transportation Alternative. The company noted it’s the only SaaS courtesy transportation solution software used by General Motors, and that barriers to entry are considerable.

Looking ahead, the company plans to continue building on its OnTRAC CTP/CTA SaaS solution with the General Motors dealership network. Optimisation and customisation work are ongoing, which Connexion says will continue to drive increased net revenue in the year ahead.

Outside the General Motors dealership network, the company is pursuing other growth opportunities through external applications with other OEM vehicle dealerships as well as independent software suppliers in Australia and the United States.

More reading

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• The Ingham’s share price zoomed up today despite a major drop in net profit
• These beaten down ASX energy shares could mirror the tech share price boom

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Inghams Group Ltd (ASX: ING) share price has surged more than 6.5% in early trade, despite the company reporting a drop in net profit for FY20.

How has Inghams performed in FY20?

Inghams reported a 68.2% drop in net profit of $40.1 million for FY20. The poultry producer also reported a 23.6% fall in underlying profit of $78.8 million for the year. Despite the drop in profit, poultry volumes increased 3.3% to 429,000 tonnes in FY20.

Inghams cited the uncertain trading conditions as a result of the COVID-19 pandemic for the profit fall. The company said the pandemic presented significant challenges to the poultry market, supply chain and operations. However, it noted that full year results were in line with expectations laid out in its May business update.

According to the report, a decline in poultry demand in the fourth quarter interrupted positive momentum from previous quarters, resulting in an over-supply.  Inghams also noted that a 2% decline in New Zealand volume offset a 4.3% growth in Australian volumes for FY20.

Inghams management highlighted the company’s resilience to overcome the challenges of the pandemic. Despite the drop in net profit, Inghams still declared a final dividend of 6.7 cents per share.

What is the outlook for the Inghams share price?

Inghams has an optimistic outlook for the company despite challenges posed by the pandemic. The company said poultry demand continued to show resilience in the market as a preferred protein source.

However, the poultry producer noted that government restrictions during the pandemic would continue to impact consumption.

In addition,  COVID-19 restrictions could reduce capacity due to closures in poultry processing plants. Inghams was forced to close its Thomastown facility for 10 days due to an outbreak last month.

However, the company said its diversified network could maintain supply.

In the short to medium-term, Inghams will focus on its cost base and predictability of supply chains.

Foolish Takeaway

Investors seemed impressed with the company’s full year report this morning, with Inghams share price soaring more than 6.5% in early trade. However, the share price jump has scaled back this afternoon, with shares trading 3.65% higher at $3.41 at the time of writing.

More reading

• These are the 10 most shorted shares on the ASX
• Inghams share price flat despite ACCC update
• These are the 10 most shorted shares on the ASX
• How will Victoria’s stage 4 lockdowns impact ASX shares?
• These are the 10 most shorted shares on the ASX

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’ve been betting against technology shares, or just waiting it out on the sidelines as tech share prices boom, you may want to skip ahead a little.

Yesterday, overnight Aussie time, the NASDAQ-100 (INDEXNASDAQ: NDX) hit yet another new record high gaining 1.4%. The index of the largest 100 tech-oriented shares is now up 29% year-to-date, and up 64% from the 23 March low.

As Ed Moya, senior market analyst at Oanda, wrote:

The love for technology stocks grew as the favorite pandemic plays, such as Apple and Tesla saw strong demand. No one wants to short this market, so we are seeing investors just rotate back into technology stocks today.  

The Apple Inc. (NASDAQ: AAPL) share price gained 2.2%, sending its market cap above US$2 trillion (A$2.8 trillion).

Meanwhile the Tesla Inc (NASDAQ: TSLA) share price rocketed 6.6%. Year-to-date, Tesla’s share price is up an eye-popping 365%, and up 454% from its 18 March low. (Short sellers, I did warn you to skip ahead!)

Australia’s tech shares are also on the rise again today. At the time of writing, BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) shares are up 0.68%.

This technology exchange-traded fund (ETF) holds some of Australia’s largest and most innovative tech companies. ATEC’s share price is up 9.13% so far in August and up 100% since its 23 March low. For comparison, the All Ordinaries Index (ASX: XAO) has gained 38% since 23 March.

Clearly, technology shares have been the big winner in 2020. And with the uptrend firmly in place, there’s good reason to remain bullish on the best tech shares.

But if you’re a long-term investor — which I believe is the best way to grow your wealth over time — there are other shares you may want to look at adding to your portfolio.

It hasn’t been a great year for ASX energy share prices

When the price of the resource you produce dives, your share price tends to follow it down.

And that’s largely been the case with Australia’s energy shares.

Liquified natural gas (LNG) spot prices, for example fell below US$2 per million British thermal units (MMBTU) in the wake of COVID-19.

Tumbling energy prices took their toll on some of the ASX leading energy shares.

The Santos Ltd (ASX: STO) share price cratered more than 69% from its January peak through its 19 March low. Since the low, the Santos share price is up 110%, though year-to-date it remains down 30%.

The Origin Energy Ltd (ASX: ORG) share price also fell more than 56% from its January highs to its 23 March low. Despite a 45% rebound from that low, Origin’s share price is still down 35% since 2 January.

But if your investment horizon stretches out a few years, both these companies could deliver a lot of share price growth from here.

Today, LNG spot prices are back in the US$4/MMBTU range. That’s well below its peak price. And it may not return to peak prices.

But with the Australian government backing cheap energy to revive domestic manufacturing and put some money back into household pockets, well-placed energy shares don’t need a return to peak prices to be profitable.

As the Australian Financial Review (AFR) notes:

Queensland Premier Annastacia Palaszczuk called on the Morrison government to match her government’s $5 million commitment to a feasibility study into a new gas pipeline from the Bowen Basin.

She said Queensland had already unlocked 20,000 square kilometres of land for domestic gas supply.

“The gas pipeline will support further gas supply for manufacturing while lowering carbon emissions from existing mines,” she said. “And I would welcome a matching commitment from the federal government.”

Even Labor frontbencher Bill Shorten put his hat in the ring for LNG to help bring energy costs down, saying:

You can’t have a manufacturing sector, from Qenos in Botany and Altona through to foundries, through to the four smelters in aluminium, the steel industry, unless we have low price energy. I think gas does tick some of those boxes.

Santos chief executive Kevin Gallagher puts the emphasis on the long-term outlook here (as quoted by the AFR):

So I am thinking we are beginning to see some green shoots of recovery, but I think there’s a bit to go yet and I wouldn’t expect to see any material change until some time next year. … These are 20-year projects so it’s more about what the market conditions are, the ability for markets to operate, the ability for shipyards to deliver on … construction builds, etc – so you don’t have big capex blowouts.

Allan Gray, portfolio manager at Suhas Nayak said:

Origin is well placed to handle the low prices. Given the cost reductions that have occurred and given the reduction of debt that’s occurred over the last little while I think they’re well placed to navigate the challenges.

While you’re unlikely to see many energy shares dominating the financial headlines with huge new weekly share price gains in the short run, longer-term you may wish you’d bought them at today’s discounted prices.

More reading

• Why Tesla Stock Soared Past $2,000 on Thursday
• 5 things to watch on the ASX 200 on Friday
• Tesla Gigafactory 1 to boost battery production capacity 10% after new $100 million panasonic investment
• Why CSL, Iress, Santos, & Webjet shares are dropping lower
• After the stellar COVID-19 rebound, can ASX share prices keep rising?

Bernd Struben 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 Apple and Tesla. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Vita Life Sciences Limited (ASX: VLS) share price has today rocketed higher following impressive half year results. The Vita Life share price is currently up 26.76% to 90 cents, representing a new 52 week high for the company.

What does Vita Life do?

Vita Life is an Australian and Asia Pacific based pharmaceutical and healthcare company that provides over-the-counter vitamins and supplements. It is involved in the formulation, packaging, distribution and sale of three major consumer retail brands and over 700 products. Its three major brands are:

• Herbs of Gold: sold in Australia, Malaysia and Singapore
• VitaHealth: sold in pharmacies, clinics and health food stores throughout Southeast Asia
• VitaScience: sold through Blooms The Chemist stores exclusively in Australia

The company has been listed on the ASX since 2007 and employs over 400 people in seven countries worldwide.

Why is the Vita Life share price on the move?

The Vita Life share price has soared this morning following the company’s release of its half year results. Vita Life reported sales of $22.0 million, up 11% on the prior corresponding period (pcp). The Vita Life share price was also spurred on by an impressive EBIT result. EBIT increased to over $4 million representing an increase of almost 200% on the pcp. However, it was noted that this growth reflects substantial, one-off investment in advertising and promotion undertaken in 2019.

The result is particularly pleasing for the group given it commenced a strategic plan in 2018 with the objective of growing revenues by increasing the channels of distribution in its core markets. It recognised at that time, this would involve investment in both advertising and promotions, which would negatively impact its profits. The first half results reflect the increase in revenues from this strategy and, with the heavy investment in advertising not recurring, net profits have increased.

Vita Life also benefitted from the increased demand for immunity support products across key markets such as Australia and Malaysia, which helped to underpin the first half performance. Nonetheless, the company acknowledges that the COVID-19 pandemic continues to be an evolving situation, which has the potential to disrupt traditional selling channels.

Vita Life’s balance sheet remains strong with equity of $23.4 million and a net cash balance of $11.5 million. However, this is after bank borrowings that will need to be repaid.

Dividend

Directors have declared the payment of a fully franked interim dividend of 1.5 cents per ordinary share. The company’s dividend reinvestment plan (DRP) has been suspended and shall not apply.

What’s next for the Vita Life share price?

The Vita Life share price has been buoyed by today’s announcement, with investors clearly impressed by the group’s results. Results from the company’s 3-year strategy of increasing channels of distribution are positive and further growth is anticipated. However, retail conditions are expected to be mixed in the foreseeable future due to uncertainties surrounding the pandemic.

As such, Vita Life’s directors remain cautious over the medium term and were unable to provide any guidance for the remainder of the year.

More reading

• The Ingham’s share price zoomed up today despite a major drop in net profit
• These beaten down ASX energy shares could mirror the tech share price boom
• iSignthis hits ASX with $264 million damages claim
• Austal share price jumps on Alabama expansion
• Why IDP Education, IRESS, Mosaic Brands, & Mayne Pharma are dropping lower

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX Ltd (ASX: ASX) share price is trading lower on Friday after iSignthis Limited (ASX: ISX) announced that it has filed an amended statement of claim against it in the Federal Court of Australia.

At the time of writing the stock exchange operator’s shares are down 2% to $88.09.

This is just a touch short of the record high of $90.84 it reached earlier in the day. 

What did iSignthis announce?

This afternoon the troubled payments technology company announced that it has amended its statement of claim to also allege misleading and deceptive conduct under section 1041H of the Corporations Act by ASX Limited.

This follows the publishing of a ‘Statement of Reasons’ that explained the basis of the suspension of iSignthis’ securities since 2 October 2019.

According to the release, iSignthis is claiming damages now in excess of $264 million. Though, it warned the stock exchange operator that this claim is likely to “increase with the passage of time between now and a resolution of the claim, and in the absence of a corrective statement by ASX and an apology.”

The company’s CEO, John Karantzis, commented: “The ASX now needs to demonstrate to the Federal Court that its ‘Statement of Reasons’ is supported by evidence, and not the mere conjecture that we claim it is.”

“Uniquely, ASX as a market operator may have mislead [sic] and deceived the market that it is obligated to maintain on a fair, transparent and orderly basis, throwing doubt on its ability to manage a Tier 1 market. By any measure, the damages claimed and the impact of any adverse finding make this a high stakes and material case for the ASX,” he added.

At the time of writing ASX Limited had not responded to the claim.

More reading

• ASX share price on watch as profit surges 4%
• How to turn $20,000 into over $200,000 in 10 year with ASX shares
• 5 things to watch on the ASX 200 on Monday

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share price of shipbuilder and defence contractor Austal Limited (ASX: ASB) has jumped following a report the company is expanding its land, buildings and dry dock in Alabama in the United States. At the time of writing, the Austal share price was 2.57% higher at $3.59 after closing yesterday’s session at $3.50. 

Let’s take a look at the specifics of this morning’s announcement and whether the company has the legs to return to its February highs of $4.40.

What did Austal announce?

As part of its media release to the market, Austal specified it had entered into a conditional agreement to purchase 15 acres of additional waterside land and facilities in Mobile, Alabama, USA.

It stipulated that “The acquisition would support Austal USA’s new construction and service strategy by securing launch and deep water berthing capability in support of future new construction efforts including steel ships, while also giving Austal USA increased service and repair capacity in Mobile.”

This is of critical importance to Austal, particularly in light of news released in June that the company would be spending US$100 million on creating a steel shipbuilding capability alongside the US Government. This capability is expected to compliment the company’s existing aluminium operations.

To finance the acquisition, a sum less than US$10 million, Austal will utilise its cash holdings. The agreement between Austal and the Modern American Recycling and Repair Services of Alabama (MARS) remains conditional on undisclosed factors at this point, however the company assured the market these conditions were not unusual for this type of transaction.

Is the Austal share price in the buy zone?

Prospective investors looking at the shipbuilder will likely be optimistic the Austal share price can rise based upon the large volume of work coming through its doors.

One such example of this was the six new patrol boats ordered by the Australian Government in May, cited as a deal worth $350 million. This order will likely create homegrown jobs to assist in the economic recovery from the COVID-19 pandemic, whilst also providing a boost for the company’s bright future in Australia.

Additionally, Austal’s partnership with the US Government is a significant tailwind, particularly if these ties can deepen over the next few years. According to the US Department of Defense (DoD), US$705 billion will be spent on defence in FY21, a budget of colossal magnitude.

With seemingly plenty of money to go around, Austal has a unique opportunity to benefit from its relationship with the US Government. This is particularly the case if tensions between the US and China continue to linger in maritime hotspots such as the South China Sea. As well as promoting the overall priority of defence spending, these tensions at sea will likely mean continued renovation or expansion of naval craft for the US and their allies in Asia.

The bottom line is that, in theory, US-China tensions in a military context are of benefit to defence contractors like Austal. Of course, one must question whether the election of a Democratic US President in November could see a shift in policies toward China and the reversal of defence spending to some extent. This uncertainty could prove to be a drag on the current Austal share price.

Foolish takeaway

This expansion of its facilities in Alabama appears to be of key strategic importance for Austal. Furthermore, the company has a history of delivering projects in a timely manner and has plenty of work locked in over the short term. Austal reports its full-year FY20 earnings on Monday next week.

More reading

• 3 surging ASX defence shares to buy next week
• Escalating US-China tensions are sending these ASX stocks jumping higher today

Toby Thomas has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After a strong start to the day, the S&P/ASX 200 Index (ASX: XJO) has faded in afternoon trade. At the time of writing the benchmark index is down 0.1% to 6,113.4 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The IDP Education Ltd (ASX: IEL) share price is down over 2% to $18.74. This appears to be down to profit taking after a huge gain on Thursday. Investors were fighting to get hold of the student placement and language testing company’s shares after the release of a surprisingly strong full year result. Despite the pandemic, IDP Education reported a 2% decline in revenue to $587.1 million and a 29% increase in EBITDA to $148.6 million.

The IRESS Ltd (ASX: IRE) share price has fallen 3% to $10.44. Investors have been selling the financial technology company’s shares since the release of its half year results on Thursday. Although IRESS reported a 12% increase in revenue, it disappointed the market by posting a 14% decline in net profit for the half.

The Mosaic Brands Ltd (ASX: MOZ) share price is down 5.5% to 68.5 cents. The catalyst for this was news that Westfield has forced the closure of 129 of its stores due to the non-payment of its rent. “These actions are extremely disappointing, given the current environment, and difficult to comprehend in the context of a relationship that spans close to 40 years,” said Mosaic Chairman Richard Facioni.

The Mayne Pharma Group Ltd (ASX: MYX) share price is down almost 4% to 33.7 cents after posting another disappointing full year result. The pharmaceutical company reported a 13% decline in revenue to $457 million and a net loss after tax of $92.8 million. The company’s key generic products division was the main drag on its results. Sales were down 21% on FY 2019 to $253 million.

More reading

• Mayne Pharma share price on watch as earnings slump 27%
• ASX 200 down 0.8%, IDP Education soars
• Why CSL, Iress, Santos, & Webjet shares are dropping lower
• Iress share price dives 6% on half-year results
• ASX 200 down 1%: Qantas results, Afterpay hits record high, Webjet crashes lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Idp Education Pty Ltd. The Motley Fool Australia has recommended IRESS Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Selfwealth Ltd (ASX: SWF) share price is moving higher this morning following the release of a very strong full year report for the 2020 financial year (FY20).

The Selfwealth share price is currently trading 9.52% higher up to 58 cents.

Selfwealth’s full-year results

The ASX share trading platform has seen astounding growth thanks to the COVID-19-induced volatility of the share market this year. Most notably, the company grew its revenue by an incredible 313%, rising to $8.6 million.

Another important metric to track the company’s performance is the number of active traders on its platform. Selfwealth reported an increase of 46,445 traders, which was growth of 235% year-on-year. This puts Selfwealth at number 6 in terms of brokers in Australia, with 6% of all Australian investors using the platform. Also encouraging was the fact that just over 1 in 10 new investors are choosing Selfwealth and the same number are transferring from other brokers.

Selfwealth also saw impressive growth in the amount that clients were trading, which equates to increased revenue for the company. The company’s total assets on HIN (holder identification number) rose to $2.52 billion, increasing a huge 124% year-on-year.

Furthermore, the growth has resulted in SelfWealth’s first ever quarterly positive cash flow from operating activities during the fourth quarter of FY20. A healthy balance sheet of $5.62 million, no debt and a positive cashflow leave the company in a solid financial state. This is reflected in the Selfwealth share price storming higher today.

Outlook

Looking forward, the company has seen a number of structural changes aid its businesses plans. Firstly, thanks to the global pandemic there has been an increased shift to digitisation, and this along with other COVID-19 tailwinds has seen increased usage of the platform. Wealth creation has also been turned on its head. This is seen as ultra-low interest rates and term deposits are no longer attractive as they were. All these factors look to push customers towards the online broker.

Another exciting area for Selfwealth is there upcoming US trading platform arriving in December. Selfwealth has indicated it intends to become the home for direct equities trading, with a highly competitive fee structure and the ability for Australian investors to invest in the US and Australia, all in the once place. More international markets are set to be added in the future via their partnership with Phillip Capital.

The company has not provided details on specific numbers regarding revenue of cash flow growth, this is likely because of the highly volatile situation in markets mentioned above.

More reading

• Why IDP Education, IRESS, Mosaic Brands, & Mayne Pharma are dropping lower
• ASX 200 flat: Suncorp surges higher, A2 Milk acquisition plans, TPG’s half year update
• Why the MyState share price has slumped today
• 265,000 investing ‘virgins’ joined the share market during COVID-19
• Why a2 Milk, Coca-Cola Amatil, Star, & Suncorp shares are charging higher

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is trading flat. The benchmark index is currently at 6,120.4 points.

Here’s what is happening on the market today:

Suncorp FY 2020 results.

The Suncorp Group Ltd (ASX: SUN) share price is racing higher on Friday after the release its full year results. The insurance and banking giant’s cash earnings came in at $749 million in FY 2020, down 32.8% on the prior corresponding period. This didn’t stop the company from paying its shareholders a final dividend. Suncorp has declared a final fully franked 10 cents per share dividend. This lifts its full year dividend to 36 cents per share.

A2 Milk acquisition.

The A2 Milk Company Ltd (ASX: A2M) share price is on the rise today after announcing a non-binding indicative offer to acquire a 75.1% interest in Mataura Valley Milk for NZ$270 million. Mataura Valley Milk is a New Zealand dairy nutrition business. If the deal completes successfully, the infant formula company plans to establish blending and canning capacity at Mataura’s facility in the future.

TPG Telecom half year results.

The TPG Telecom Ltd (ASX: TPG) share price is edging higher today following the release of its half year results. Given the timing of the merger (and despite the company name), these results are predominantly based on the Vodafone Australia business and include a contribution of only four days from the original TPG business. TPG Telecom reported a net profit after tax of $83 million. This includes a $226 million one-off, non-cash credit to its tax expense.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Friday has been the Star Entertainment Group Ltd (ASX: SGR) share price with an 8.5% gain. This morning Credit Suisse upgraded its shares to an outperform rating with a $3.60 price target. The worst performer has been the IPH Ltd (ASX: IPH) share price with a 4% decline. This follows a lukewarm response to its full year results on Thursday.

More reading

• Why a2 Milk, Coca-Cola Amatil, Star, & Suncorp shares are charging higher
• TPG Telecom share price higher following half year update
• Meet the latest ASX stock that’s more than doubled its full year COVID-19 earnings
• Mayne Pharma share price on watch as earnings slump 27%
• Why these Charter Hall REITs are outperforming in FY20

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The MyState Limited (ASX: MYS) share price is down today, posting a drop of 4.69% to $3.66 at the time of writing. This came after the company released its full-year results for the 2020 financial year (FY20).

What was in the announcement?

In the year to 30 June 2020, MyState recorded a statutory net profit after tax of $30.1 million. This compared to net profit after tax from continuing operations of $29.8 million in financial year 2019. 

Net operating profit before provisions and tax increased 12.9% to $47.9 million in the 2020 financial year from $42.4 million in the 2019 financial year. The company stated that it had strong core operating results before coronavirus-related credit loss provisions.

In the release, MyState reported net interest income of $99.5 million, an 11% increase on the prior year. The company stated that it benefitted from balance sheet growth, disciplined margin management, a significant increase in retail deposits and lower wholesale funding costs.

The bank had a CET1 ratio of 11.1% at 30 June 2020, which it stated remained comfortably above regulatory requirements.

MyState’s board resolved not to pay a final dividend for the year with the company stating that this was “to maintain the group’s strong capital position during the current economic uncertainty”.

The company’s CEO and managing director, Melos Sulicich, commented on the outlook for the company, stating:

Following the hard work of the past 6 years, MyState is set for a bright future. These results show our investments in modernising our bank and wealth management business have been well received by our customers.

About the MyState share price

MyState is a financial services group with its headquarters in Tasmania. It offers personal and commercial lending, mortgage lending, savings and investment products, wealth management and insurance.

In April, MyState announced that its subsidiary MyState Bank Limited had been placed on review by Moody’s for a credit rating downgrade.

The MyState share price is up 16.19% since its 52-week low of $3.15, however, it is down 26.5% since the beginning of the year. The MyState share price is down 20.09% since this time last year. 

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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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