It certainly was a busy day of results releases on Wednesday.

The likes of A2 Milk Company Ltd (ASX: A2M) and CSL Limited (ASX: CSL) were just two of a large number of companies handing in their report cards.

Given how many releases were made, a few results will inevitably have slipped under the radar.

Three that you might have missed are summarised below. Here’s how they performed:

McPherson’s Ltd (ASX: MCP)

The McPherson’s share price rose almost 4% on Wednesday after the beauty products company delivered a solid FY 2020 result. For the 12 months ended 30 June, McPherson’s reported a 6% increase in total sales revenue to $222.2 million. On the bottom line the company posted an underlying profit after tax of $15.5 million, up 13% on the previous year. On statutory basis, profit after tax fell 56% to $6.1 million. This includes a $10.7 million pre-tax non-cash impairment in its A’kin and Moosehead brands and its investment in the Kotia joint venture.

Moelis Australia Ltd (ASX: MOE)

The Moelis share price jumped over 9% higher yesterday following the release its half year results. Investors were very pleased to see the company deliver a result 6.5% ahead of the guidance it provided at its annual general meeting in May. Moelis reported a slight reduction in revenue to $67.4 million and a 19.4% increase in statutory net profit to $8.9 million. And although no guidance was given for the full year, management revealed that the second half has started positively.

Saracen Mineral Holdings Limited (ASX: SAR)

The Saracen share price tumbled lower on Wednesday following the release of its full year results. Though, this decline had more to do with a pullback in the gold price than its profits. In fact, had the gold price remained stable the Saracen share price would likely have risen. For the 12 months ended 30 June, Saracen reported a whopping 173% increase in underlying net profit after tax to $257.5 million. This was driven by a 47% jump in production, steady costs, and a stronger gold price.

More reading

• The latest ASX stocks upgraded by brokers to “buy” today
• Why the Saracen share price is shooting higher today
• Evolution Mining and 1 other ASX gold share in the buy zone
• 5 things to watch on the ASX 200 on Friday
• Northern Star share price falls 1.6% on trading update

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 CSL Ltd. 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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If you’re searching for dividends in this low interest rate environment, then I would suggest you consider the ASX dividend shares listed below.

Here’s why I think they are in the buy zone right now:

BWP Trust (ASX: BWP)

The first option to consider is BWP Trust. It is the largest owner of Bunnings Warehouse sites in Australia with a portfolio of 68 stores leased to the hardware giant. Earlier this month the company released its full year results and revealed a 1% increase in profit before gains on investment properties to $117.1 million. I believe this demonstrates the resilience of its business.

Another example of this was its property valuations. At a time when retail properties are being impaired, BWP Trust recognised a $93.6 million increase in the gains in fair value of its investment properties. Management advised that this reflects the continuing strong market support for Bunnings Warehouse properties from an investment and risk perspective. In FY 2021, BWP Trust expects to pay a distribution in the region of 18.29 cents per unit. This works out to be an attractive 4.6% yield.

Telstra Corporation Ltd (ASX: TLS)

This telco giant’s shares have come under pressure this month following the release of its full year results. Investors were selling its shares amid concerns that its guidance for FY 2021 would force a dividend cut. While a cut is certainly a possibility, a switch to a free cash flow-based dividend policy could allow for it to be maintained.

A number of analysts believe this will happen, securing its 16 cents per share dividend for the foreseeable future. If that proves correct, then Telstra’s shares will offer a fully franked 5.2% dividend yield in 2021. In light of this, I would be a buyer of the company’s shares right now. It is also worth noting that if it cuts its dividend to 12 cents, it would still provide an attractive 3.9% yield.

More reading

• 3 fantastic ASX 200 shares for retirees to buy
• Afterpay and Mesoblast were among the most traded shares on the ASX last week
• Have $3,000 to invest? Try these 2 dirt-cheap ASX shares
• Telstra share price hit by broker downgrade today
• 2 growing ASX dividend shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 Catapult Group International Ltd (ASX: CAT) share price will be in focus on Thursday following the release of its FY 2020 results.

What happened in FY 2020?

For the 12 months ended 30 June 2020, the sports analytics and wearables company reported a 6% increase in revenue to $100.7 million. The key driver of this was a 21% lift in its subscription revenue to $77.6 million. This was boosted by new contract wins and a 39% lift in customers with more than one Catapult solution.

This led to Catapult delivering earnings before interest, tax, depreciation and amortisation (EBITDA) of $13.3 million in FY 2020. This was an improvement of $9.2 million and driven by the continued strong subscription revenue growth and a decline in operating expenses.

As a result, the company has now delivered five consecutive half-years of consistent EBITDA growth. Management notes that this is due to its continued focus on efficient implementation of a SaaS business model resulting in higher operating leverage and profitable growth.

Pleasingly, after committing to deliver positive free cash flow in FY 2021, Catapult has achieved its goal a year earlier than planned. Catapult posted positive free cash flow of $9 million, up from a cash outflow of $17.1 million in FY 2019.

Where did Catapult’s growth come from?

Management advised that its subscription revenue growth of 21% was driven by positive performances across all verticals.

Performance & Health grew 29%, Tactics & Coaching lifted 10%, Management increased 26%, and Media and Engagement jumped 27%.

This was supported by continued low churn levels. Despite the pandemic, Catapult recorded ACV churn of 6.7% compared to 6.3% in FY 2019.

Catapult’s CEO, Will Lopes, commented: “Despite our Q4 slowdown, our staff was able to grow subscription revenue 21% from last year and deliver 26 new features to our customers. Our ability to execute in such trialing times is a great sign of our product strength, our employees’ dedication to our customers, and the experience of our executive team.”

Outlook.

Management advised that FY 2021 will be a shorter financial year comprising just nine months. This is the result of Catapult changing to a 31 March year end.

It feels this change and a switch to a USD reporting currency will better reflect its underlying successful operating and earnings profile driven by its growth in the northern hemisphere market.

In respect to its financials, management aims to continue being free cash flow positive in FY 2021.

However, it believes it is too early to comment on revenue growth rates for FY 2021 because of the pandemic. Though, it does expect a decent portion of sales that would otherwise have been made in the fourth quarter to be made in the first half.

Longer term, management expects its underlying revenue growth rate to return to historic levels.

More reading

• Catapult share price surges on award of record contract
• 3 ASX small cap shares with serious growth potential
• Why Catapult, Perseus Mining, Prospa, & Spark shares are dropping lower
• ASX stock of the day: Catapult share price leaps 15% on US college football contract
• Is this why the Catapult share price sank lower today?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Catapult Group International Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. 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 Brambles Limited (ASX: BXB) share price will be under the spotlight tomorrow after it unveiled its full year profit results after the market closed.

The logistics group could find favour with investors as it managed to deliver sales and earnings growth despite the COVID-19 market meltdown.

Brambles delivers profit and sales growth

Group revenue came in at US$4.73 billion ($6.52 billion) in FY20, which is 6% ahead of last year in constant currency terms. Its adjusted net profit of US$477.2 million was 11% above FY19 if you ignored the exchange rate.

Management also declared a final dividend of US9 cents a share, which converts to 12.54 cents (franked at 30%). That’s a cut from last year’s 14.5 cents per share payout.

A change in accounting standards from AASB 16 takes some of the gloss off the results too. This change contributed to around 3 percentage points to underlying profit growth.

The stronger US dollar hurts its earnings as all its income is reported in US dollar. Sales growth would halve otherwise to 3% while net profit growth would only hit 5%.

Marginal profit issue could save Brambles’ share price

However, I think the market will overlook this small negative given that the results imply stronger margins – regardless of how you treat the exchange rate.

It’s hard enough to grow both top and bottom lines amid the largest economic disruption in living memory, let alone lift margins.

What’s more, most currency forecasters are expecting the US dollar to weaken through to 2021, which will suit Brambles well.

COVID-19 a double-edged sword for BXB share price

The COVID-19 pandemic was both a blessing and a curse to Brambles. Its main business is to provide pallets and logistic services to supermarkets and other consumer staple retailers.

Demand for food and other household products surged during the onset of pandemic in March. That’s good news for Brambles if not for the fact that it left the group scrambling to meet volatile demand.

Meanwhile, the virus outbreak had a big negative impact on Brambles’ Automotive containers and Kegstar keg-pooling businesses. No one was buying cars in the sharp and sudden downturn, while lockdowns forced pubs to shutter. Luckily, these businesses only account for around 5% of group revenue.

Cold water on good result

However, the thing that might disappoint shareholders is the lack of a V-shape earnings recovery for the group. Management believes that on a constant currency basis, revenue will be anywhere between flat and +4%, while underlying profit will range from zero to +5%.

For a stock that’s trading on a price-earnings multiple of 26.5 times, the prospect of zero growth in FY21 could spook investors.

On the other hand, one has to wonder if management is being too conservative. The group is leveraged to economic activity, and economists are tipping a decent if not substantial rebound in the global economy within the next 12 months.

It’s hard to imagine Brambles posting no or low single-digit growth in such a scenario.

More reading

• The rocketing Aussie is shaping up as a new threat to the profit season
• What would deflation mean for your ASX shares?
• Is the Brambles share price a hidden buy?
• One thing you should be doing ahead of the ASX reporting season

Motley Fool contributor Brendon Lau 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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With populations around the world getting older, demand for healthcare services is expected to grow materially over the next couple of decades.

In light of this, I think the healthcare sector is a great place to look for long term investment options.

Two quality ASX healthcare shares that tick a lot of boxes for me are listed below. Here’s why I think they could be great options:

iShares Global Healthcare ETF (ASX: IXJ)

The first healthcare option for investors to consider is actually an exchange traded fund (ETF). I think the iShares Global Healthcare ETF would be a fantastic option due to the large number of quality companies that it is invested in. It provides investors with exposure to healthcare companies across a range of sectors including biotechnology, pharmaceutical, and medical devices.

This means investors will be investing in many of the world’s biggest healthcare companies such as CSL Limited (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer. I believe this group of companies has the potential to outperform the market over the long term thanks to the favourable industry tailwinds. As a result, I feel the iShares Global Healthcare ETF could be a great long term option.

Ramsay Health Care Limited (ASX: RHC)

Another option for investors to consider buying is Ramsay Health Care. This private hospital operator has been facing tough trading conditions for a couple of years and things are unlikely to get easier in the immediate term. But I wouldn’t let that put you off investing with a long term view. Especially given how this appears to have already being factored into the Ramsay share price.

I believe Ramsay’s long term outlook is very positive. This is due to the aforementioned forecasted increase in demand for healthcare services and its global footprint. Another positive is that Ramsay’s management team has a track record of accelerating its growth through acquisitions. I suspect there will be further acquisitions in the coming years that expand its footprint into new markets and drive further growth.

More reading

• ASX 200 rises 0.7%, CSL soars 6.4%
• How will the University of Oxford’s COVID-19 vaccine impact ASX share prices?
• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses
• Why Corp Travel, CSL, Domino’s, & WiseTech Global shares are storming higher
• The latest ASX stocks upgraded by brokers to “buy” today

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 CSL Ltd. The Motley Fool Australia has recommended Ramsay Health Care 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 Afterpay Ltd (ASX: APT) share price will be on watch on Thursday following a surprise after-market update on its FY 2020 performance.

What did Afterpay announce?

This afternoon the payments company revealed that its unaudited FY 2020 Net Transaction Loss (NTL) as a percentage of underlying sales is going to be better than previously expected.

On 7 July 2020, the company released an update which advised that its NTL as a percentage of underlying sales was expected to be up to 55 basis points in FY 2020.

However, the company now expects to report an NTL of just 0.38% for the financial year.

Management advised that this improvement is primarily due to higher than anticipated collections of instalment payments relating to its 30 June 2020 receivables balance that have occurred since then.

This has translated into a materially lower provision and lower losses than previously expected.

Earnings guidance lifted.

In light of this positive change in NTL, Afterpay’s unaudited FY 2020 Net Transaction Margin (NTM) as a percentage of underlying sales and its EBITDA (excluding significant items) are expected to be higher than previously thought.

Management expects its NTM to be at approximately 2.25% and its EBITDA (excluding significant items) to be approximately $44 million. This compares very favourably to its previous NTM guidance of 2% and EBITDA guidance of $20 million to $25 million.

In respect to its provisions, Afterpay’s unaudited provision for expected losses is expected to be approximately $34 million. This is based on an unaudited gross consumer receivables balance of approximately $817 million.

Management explained: “The July Trading Update for the FY20 NTL% was based on a relatively short period of collections data relating to the 30 June 2020 receivables balance from 1 July 2020 through to the date of the 7 July 2020 announcement. Since that time, and with the benefit of more collections data reviewed as part of the process of preparing the full year financial statements, a reduced NTL% is now expected.”

More reading

• This ASX fund manager is going back to value in a post-COVID world. Here’s why.
• Afterpay share price hits new, all time high
• Afterpay and Mesoblast were among the most traded shares on the ASX last week
• Tech shares race to record highs as Bank of America tips BHP and Rio shares
• New investors should do this before investing in ASX shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 have $2,000 to invest then I think there are a number of smart ASX shares that you could buy.

The share market has recovered strongly from the COVID-19 crash, but I think there are several ASX shares that would still make great buys today:

Citadel Group Ltd (ASX: CGL)

Citadel is an ASX tech share that provides software to essential sectors like defence, education and healthcare. I think its earnings are fairly defensive with the high-quality clients it works with. A large amount of its revenue comes from government-related entities.

One of the main reasons why I think Citadel looks like a good buy is that it’s trading cheaply. At the current Citadel share price it’s trading at 13x FY22’s estimated earnings.

I’m also excited by the UK healthcare software acquisition called Wellbeing. It increases Citadel’s recurring revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) margin. Plus, it will allow management to help sell Citadel’s software into the UK market and sell the Wellbeing software into Australia. The combined package can be sold into other markets.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an electronic donation business. Its main client base is the medium and large church sector in the US. Management think this is a big opportunity for the ASX share, which is why the company has a long-term target of US$1 billion of annual revenue.

I was very impressed by the scalability of Pushpay in FY20. It increased its gross margin from 60% to 65% in just one year. In FY21 the ASX share is hoping to double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to US$50 million to US$54 million.

Church donations could prove to be a pretty defensive source of earnings for Pushpay in my opinion. I think it could become even more profitable as it grows larger. The current pandemic circumstances are very unfortunate, but they’re helping bring forward adoption of Pushpay.

At the current Pushpay share price it’s trading at 33x FY22’s estimated earnings.

Bubs Australia Ltd (ASX: BUB)

Bubs is an infant formula business with plenty of growth potential. It’s growing strongly overseas with Asian consumers rapidly taking up its goat milk formula. In the fourth quarter of FY20 Bubs said Chinese direct sales increased by 26% and other export market sales rose by 71%. Vietnam is one market that Bubs is finding good early traction in.

The company is reporting steady growth of its gross profit margin which could go even higher because its infant formula has a much higher gross margin than its other products. Higher margins is good for the bottom line. Bubs has good control over its supply chain through acquisitions with access to the largest goat herd in Australia. It also owns its own Chinese-approved manufacturing facility.

At the current Bubs share price of $0.92 I think it has a lot of growth potential over the next five years.

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the few ASX retail shares I’d be willing to buy. It’s a plus-size women’s fashion retailer of clothes, footwear and accessories.

The company is doing incredibly well at increasing its sales and distribution network in the northern hemisphere. It’s working with both US and European partners to sell products. The core business is going well, even through the pandemic, thanks to a high level of online sales. City Chic was positioned well coming into this difficult period.

I’m particularly excited by the ASX share’s strategy of buying financially-distressed competitors in the US. City Chic can turn them into online-only offerings which decreases costs substantially. It should lead to the company steadily building market share in the US.

City Chic is currently trading at 24x FY22’s estimated earnings.

MFF Capital Investments Ltd (ASX: MFF)

I think that MFF Capital is one of the best listed investment companies (LICs) on the ASX. It’s very capably run by Chris Mackay. He has led the LIC to total shareholder returns of 18.1% per annum over the past decade. That’s a great run.

This investment choice is a bet on Mr Mackay continuing the strong run over the next decade. MFF Capital has moved to a large cash position which means the ASX share is well placed to weather any market downturn later this year – it also gives lots of financial ammunition for MFF Capital to buy beaten-up shares at lower prices.

MFF Capital recently announced it intends to keep increasing its dividend. Its two biggest share holdings are currently Visa and Mastercard – two quality businesses.

BetaShares Global Quality Leaders ETF (ASX: QLTY)

I think that it’s quality businesses that are best suited to get through whatever comes next. Businesses that can keep growing, despite COVID-19, are attractive propositions.

This exchanged-traded fund (ETF) is invested in shares that rate well on four metrics: return on equity (ROE), debt to capital, cash flow generation ability and earnings stability.

The businesses that feature at the top of this ETF’s holdings are indeed quality. It owns names like Nike, Intuit, Intuitive Surgical, Nvidia, Apple, Accenture and Adobe. These aren’t ASX shares, these are some of the best businesses in the world.

It has performed well since inception in November 2018 with net returns of around 19% per year. Past performance isn’t a guarantee of future performance, but I think these quality names can keep on producing for the long-term.

Vitalharvest Freehold Trust (ASX: VTH)

Vitalharvest is an agricultural real estate investment trust (REIT). It owns berry and citrus fruit farms.

The REIT generates both fixed rent and variable rent in the form of a profit share from its main tenant.

At the current Vitalharvest share price, the ASX share is trading at a 19% discount to the net asset value (NAV) at 31 December 2019. This is a large discount, assuming the NAV hasn’t changed negatively. The NAV may even have risen.

There is a new manager of Vitalharvest which is looking to target more acquisitions across the food logistics process with potential buys relating to food processing and storage.

As a bonus, Vitalharvest offers a distribution yield of 6.2%.

Foolish takeaway

I think each of these ASX shares has the potential to beat the overall ASX over the next 12 months and the longer-term. At the current prices I’d probably go for Citadel first, along with Pushpay and Bubs. I think those smaller businesses have a lot of long-term growth potential.

More reading

• Should you buy the beaten down shares of Bubs and Webjet?
• Where to invest $20,000 into ASX shares immediately
• 3 ASX dividend shares to buy for income
• Where I’d invest $10,000 today into ASX shares
• Why I would buy Afterpay and this quality ASX tech share

Tristan Harrison owns shares of Magellan Flagship Fund Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BUBS AUST FPO and PUSHPAY FPO NZX. The Motley Fool Australia has recommended BUBS AUST FPO, Citadel Group Ltd, and PUSHPAY FPO NZX. 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 S&P/ASX 200 Index (ASX: XJO) went up by 0.72% to 6,168 points today.

It was a very busy do for reporting today. Here were a number of the highlights:

CSL Limited (ASX: CSL)

The CSL share price went up 6.4%.

In FY20 the large healthcare business saw statutory profit after tax grow by 17% in constant currency terms to US$2.1 billion with revenue growth of 9% in constant currency terms.

The ASX 200 share declared a final dividend of US$1.07 per share, bringing the total full year dividend to US$2.02 – up 9%. In Australian dollar terms the dividend rose 11% to $2.95.

Net profit after tax in FY21 is expected to be in the range of US$2.1 billion to US$2.265 billion in constant currency terms. That would be profit growth of up to 8%.

WiseTech Global Ltd (ASX: WTC)

The strongest performer within the ASX 200 was the WiseTech share price which rocketed higher by 34%.

WiseTech reported that its total revenue increased by 23% to $429.4 million with the percentage of recurring revenue improving to 89%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 17% to $126.7 million. The EBITDA margin declined slightly to 30%.

Net profit attributable to shareholders rose by 197% to $160.8 million. However, underlying net profit was flat at $52.6 million.

WiseTech declared a final dividend per share of $1.60, down 18% from last year’s $1.95 per share payment.

In FY21 the ASX 200 company is predicting that revenue will be between $470 million to $510 million, representing growth of 9% to 19%. EBITDA is expected to grow to $155 million to $180 million, which would be growth of 22% to 42%.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price rose by more than 10% after releasing its FY20 result.

The ASX 200 business reported underlying EBITDA of $65 million including $0.5 million of underlying EBITDA in the second half of FY20.

Underlying net profit was $32 million before one-off items. Including those items, the statutory result was a net loss of $8.2 million.

Management said the business can be profitable on its domestic-only model with a significant contribution from its essential services travel. Its client retention rate is more than 97% and it said it’s winning business in all regions.

The company saw an underlying EBITDA loss of $2.2 million in July 2020, though the ANZ and European regions broke even.

There was no interim or final dividend in FY20.

Nearmap Ltd (ASX: NEA)

The Nearmap share price fell over 11% today – it was one of the worst performers within the ASX 200 after reporting its FY20 result.

Its annualised contract value at 30 June 2020 was $106.4 million, up from $90.2 million a year ago. Statutory revenue increased by 25% to $96.7 million. Customer churn increased to 9.9% during the year, up from 5.3%.

However, it said its EBITDA fell from $15.5 million last year to $9.1 million in FY20.

It reported a much steeper net loss after tax of $36.7 million after making a number of investments across the business for growth.

In the first seven weeks of FY21, Nearmap said its ACV portfolio growth has continued. It’s similar to the growth rate for the same period in FY20.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

The Domino’s share price rose by 8.9% today after reporting.

Network sales rose 12.8% to $3.27 billion and online sales increased by 21.4% to $2.36 billion.

The ASX 200 busines revealed that its underlying earnings before interest and tax (EBIT) went up by 3.6% to $228.7 million. Underlying net profit after tax rose by 3.3% to $145.8 million. Underlying earnings per share (EPS) rose by 2.7% to 169.4 cents.

Free cash flow rose 90.6% to $161.8 million and the full year dividend was increased by 3.3% to 119.3 cents.

The company is aiming for same store sales growth of 3% to 6% per annum over the next three to five years whilst growing its store count by 7% to 9% per annum.

More reading

• How will the University of Oxford’s COVID-19 vaccine impact ASX share prices?
• 4 ASX tech shares surging higher today on strong FY 2020 earnings
• This ASX fund manager is going back to value in a post-COVID world. Here’s why.
• 4 market experts’ opinions as US shares hit record and WiseTech share price soars 33%
• Why the WiseTech Global share price rocketed 37% higher today

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 CSL Ltd. and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Nearmap Ltd. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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 Webjet Limited (ASX: WEB) share price will be one to watch on Thursday following the release of its FY 2020 results after the market close.

How did Webjet perform in FY 2020?

It certainly was a difficult 12 months for the online travel agent due to the COVID-19 pandemic.

After delivering a record profit result in the first half, the pandemic led to a collapse in booking activity and revenue in the second.

This ultimately led to Webjet reporting a 27% decline in revenue to $266.1 million. This comprises first half revenue of $217.8 million and second half revenue of $48.3 million.

Things were unsurprisingly much worse for the company’s earnings before interest, tax, depreciation and amortisation (EBITDA). On a statutory basis, Webjet posted an EBITDA loss of $91.3 million for the year. This was down 171% year on year and comprised positive EBITDA of $46.4 million in the first half and an EBITDA loss of $137.7 million in the second half.

This statutory result includes one-off items totalling $117.7 million. These include $40 million debtor write-offs, $14.6 million associated with the closure of Webjet Exclusives, and a $20 million impairment of intangibles from the closure of Online Republic Cruise.

On an underlying basis, which excludes the one-offs, Webjet’s EBITDA fell 80% to $26.4 million. This comprises first half EBITDA of $86.3 million and a second half EBITDA loss of $59.9 million.

Finally, on the bottom line, Webjet recorded a statutory net loss after tax of $143.6 million and an underlying net loss after tax of $42.3 million.

Balance sheet.

Thanks to a combination of its equity raising and notes offering, Webjet finished the period with pro forma cash on hand of $320 million and pro forma liquidity of $420 million.

All being well, this will give Webjet sufficient liquidity to ride out the current crisis. Especially following its 50% reduction in average monthly operating expenses in comparison to the first half.

FY 2021 outlook.

The company notes that after essential worker travel, domestic leisure markets are expected to be the first to open around the world. As a result, it feels all its businesses are well-placed to capture the pick-up in travel activity when it happens.

Webjet’s managing director, John Guscic, commented: “Whilst it is impossible to predict the timing of market recoveries, travel is recognised as a fundamental driver of global society. Travel is aspirational and exciting and once markets re-open, we expect to see unprecedented airline, hotel and tourism offerings – it will be a time of rediscovering the world.”

“Our B2C businesses are highly scalable and the strength of the Webjet OTA brand should enable it to thrive as domestic markets open up. Our strategic objective for the WebBeds business is to be the #1 global player and everything we are doing now is focused on ensuring we emerge in a stronger position and giving ourselves the greatest opportunity to achieve that goal,” he added.

Mr Guscic concluded: “Our global footprint and reduced cost base provides a powerful platform from which we are determined to maximise to the sustainable benefit of our shareholders and stakeholders.”

More reading

• Should you buy the beaten down shares of Bubs and Webjet?
• Why Tyro, Virtus Health, Webjet, & Westpac shares are dropping lower
• These are the 10 most shorted shares on the ASX
• 5 things to watch on the ASX 200 next week
• Up 30% in a week, is the Webjet share price a strong buy?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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.

The post Webjet share price on watch after reporting $143.6 million loss appeared first on Motley Fool Australia.

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If you’re anxiously awaiting the arrival of a COVID-19 vaccine raise your hand.

Okay, you can put your hand down now. (I’m assuming it was up!)

There have been whispers and rumours of an effective vaccine since the earliest weeks of the pandemic. Russia, among other nations, is currently trialling one. We wish them luck.

But the best hopes of an effective vaccine now look to lie with the University of Oxford.

Earlier today Prime Minister Scott Morrison announced the government has signed an agreement to secure 25 million doses of a potential COVID-19 vaccine — enough for every Australian — with the UK’s AstraZeneca plc (LON: AZN). If successful it will be free, and mandatory, for all Australians.

The vaccine was developed by Oxford University and has now entered its third phase. This will see it tested on thousands of volunteers.

According to Morrison, “The Oxford vaccine is one of the most advanced and promising in the world, and under this deal we have secured early access for every Australian.”

Rather than purchasing 25 million doses of the vaccine, if it proves successful, Australia will receive the formula and immediately begin to manufacture it domestically.

How will a successful vaccine impact ASX share prices?

As with any massive shifts to global economic output and the very way people are living their lives, a successful vaccine is likely to see some ASX share prices post strong gains while others fall.

One potential winner from the Oxford vaccine is biotech company CSL Limited (ASX: CSL). CSL is in discussion to produce the vaccine in Australia, though the company notes it is still working through various issues.

CSL’s share price has been on a rollercoaster of a ride this year. So far in August, that ride’s been mostly up hill, with CSL’s share price gaining 16% so far in August, giving it a market cap of $142 billion.

On a broader scale, other likely big winners are shares involved in the travel and leisure industries.

Flight Centre Travel Group Ltd (ASX: FLT), for example, has been hammered by the pandemic’s impact on travel. The Flight Centre share price is down 70% year-to-date. Though in a sign that investors are beginning to look beyond the pandemic, Flight Centre shares have gained 12% so far in August.

The potential downside for ASX share prices

Some of the shares that could well come under pressure are, not surprisingly, the same shares that have benefitted. That could be particularly concerning for shares that have gained on the back of trillions of dollars in global government and central bank stimulus. Stimulus that will almost certainly begin to wind down following an effective vaccine.

As quoted by Bloomberg, George Mussalli, head of research and chief investment officer for equities at PanAgora, says, “The risk is a taper tantrum. That’s what everyone is going to be worried about.”

Yousef Abbasi, global market strategist at StoneX adds:

The Fed will have to gently and carefully pull back from the policy measures enacted during the pandemic, and it will likely create a period of elevated volatility and indigestion for these markets. That is, of course, unless Chairman Jay Powell is a better magician than his contemporaries.

It’s a similar story here in Australia, where both the Morrison government and RBA Governor Philip Lowe will need to step carefully when winding back stimulus measures.

Careful as they may be, though, some share prices will likely suffer.

JB Hi-Fi Limited (ASX: JBH), for example, has benefitted from some consumers finding more money in their pockets with less places to spend it. And they’ve been snapping up the retailer’s electronics offerings.

That’s seen the JB Hi-Fi share price gain 33% year-to-date. And JB Hi-Fi’s share price is up an eye-popping 116% since its 25 March low.

That share price surge was justified when the company’s full year results were released on Monday. JB Hi-Fi reported its profits were up 33.2% due to strong growth in sales.

But many brokers, including Credit Suisse and UBS, are forecasting JB Hi-Fi’s operating revenue will fall in FY21 as stimulus measures are wound down.

More reading

• ASX 200 up 0.8%: ANZ to pay dividend, a2 Milk tumbles, CSL impresses
• Why Corp Travel, CSL, Domino’s, & WiseTech Global shares are storming higher
• The latest ASX stocks upgraded by brokers to “buy” today
• The highest paid CEOs in the ASX 200
• CSL share price on watch after posting US$2.1 billion FY 2020 profit

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 CSL Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group 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.

The post How will the University of Oxford’s COVID-19 vaccine impact ASX share prices? appeared first on Motley Fool Australia.

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