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The Sandfire Resources Ltd (ASX: SFR) share price is plummeting on Tuesday after the S&P/ASX 200 Index (ASX: XJO) copper giant posted its full-year earnings.

As The Motley Fool Australia reported earlier today, the company posted a record $922.7 million of sales revenue but dumped its final dividend. It will focus on repaying debt and pushing forward with its growth strategy instead of providing the payout.

The Sandfire Resources share price opened 2.5% lower at $2.60 and has continued to slide, hitting a low of $4.30, representing an 8.9% tumble.

It has since recovered slightly to trade at $4.45, 5.7% lower than its previous close.

Let’s take a closer look at what’s weighing on the copper producer’s stock today.

Sandfire Resources share price tumbles 6% on Tuesday

The Sandfire Resources share price is plunging today despite what appears to have been a successful financial year.

Indeed, the company posted its first earnings from the Minas De Aguas Tenidas (MATSA) business. It acquired MATSA for US$1.86 billion in February. At the time, the purchase was described by Sandfire CEO Karl Simich as transformative.

The acquisition was finalised just months before the DeGrussa Copper Operation retires. It’s expected to close its doors in October.

On top of its earnings, the company released news of the Motheo Copper Project, located in Botswana.

A positive definitive feasibility study has been completed for the project’s expansion. That’s expected to up its annual production to 5.2 million tonnes and will likely cost US$397 million.

The combined total ore reserve for the project’s A4 and T3 deposits now sits at:

• 49.6 million tonnes at 1% copper and 14 grams per tonne of gold for 474,000 tonnes of contained copper and 122.3 million ounces of contained silver

Today’s tumble included, the Sandfire Resources share price is 34% lower than it was at the start of 2022. It has also fallen 27% since this time last year.

The post Sandfire Resources share price tumbles 6% following full-year earnings appeared first on The Motley Fool Australia.

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More reading

• Sandfire Resources share price in focus as dividend ditched
• How are ASX copper shares performing after Monday’s surge?
• Here are the top 10 ASX 200 shares today
• ASX copper shares explode by up to 34% following BHP takeover bid
• Why is the Sandfire share price leaping 7% on Monday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woodside Energy Group Ltd (ASX: WDS) has declared a massive dividend in today’s half-year results.

Woodside shares are currently up 1.7% to trade at $35.95. Earlier, the share price hit a new two-year high of $36.68. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% so far today.

So how does this latest dividend compare to previous years, and when will it be paid?

Woodside dividend the highest since 2014

Woodside announced today it will pay a fully franked dividend of 109 US cents per share for the first half of 2022.

This is more than triple the dividend paid to shareholders for the first half of 2021. Last year, Woodside shareholders received an interim dividend of 30 US cents per share.

Today’s dividend reflects the strong operational performance, higher realised prices, and merger with the petroleum business of BHP Group Ltd (ASX: BHP), the company said.

Woodside reported a 414% surge in underlying net profit after tax (NPAT) to US$1.82 billion. The oil and gas company produced 54.9 million barrels of oil equivalent (boe), 19% higher than the prior corresponding half.

Today’s declared dividend is at the top end of Woodside’s targeted payout ratio of between 50% and 80%.

The dividend is valued at US$2.1 billion. Breaking this down, US$1.5 billion, or 76 US cents per share, reflects 80% of Woodside’s underlying NPAT. The other 33 US cents per share, totalling $600 million, represents 80% of the BHP merger completion payment.

In 2020, Woodside paid a 26 US cents per share dividend in the first half, while in 2019 this figure was 36 US cents per share. Today’s interim dividend is the highest interim payment declared since 2014.

Woodside will pay the interim dividend on 6 October. Woodside shares will trade ex-dividend on 8 September.

Share price snapshot

The Woodside share price has soared 79% in the past 12 months and 59% in the year to date.

For perspective, the ASX 200 has shed 7.7% in the past year.

Woodside has a market capitalisation of $67.12 billion based on the current share price.

The post Woodside dividend tripled: Here’s everything you need to know appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the oil price in September?
• Woodside share price lifts on 400% profit surge
• Woodside share price slumps ahead of tomorrow’s earnings update
• How does the BHP dividend stack up against the latest Fortescue payment?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Monica O’Shea has no positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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One of the biggest trends on the S&P/ASX 200 Index (ASX: XJO) over 2022 thus far has been the oil price and the rise of ASX oil shares. The ASX 200 has had an exceptionally volatile and weak performance over the year to date.

As it stands today, the ASX 200 has recorded a loss of almost 8% over 2022. But in stark contrast, the S&P/ASX 200 Energy Index (ASX: XEJ) has delivered a massive 38% gain over the same period.

We see this trend reflected in the share prices of ASX 200 energy shares too.

Take the Woodside Energy Group Ltd (ASX: WDS) share price. It’s up almost 60% over 2022 thus far, helped by its well-received earnings this morning. Santos Ltd (ASX: STO) shares have risen by 21%, while Beach Energy Ltd (ASX: BPT) shares are up 34%.

ASX oil shares have jumped on a rocket in 2022

These gains are almost certainly a byproduct of the stellar run that oil prices have enjoyed over the year. Thanks to a number of factors, including the war in Ukraine, global inflation, higher economic demand and supply chain issues, oil has skyrocketed this year.

According to Bloomberg, West Texas Intermediate (WTI) crude oil was going for around US$76 a barrel at the start of the year. But this rapidly rocketed to more than US$120 a barrel by March as the war in Ukraine began.

As it stands today, oil has cooled off, but is still going for US$96.70 a barrel today. That’s worth a 27% rise from where it was at the start of the year.

But now that we are on the cusp of September and spring, what might be next for oil prices?

Well, it is extremely hard to predict what might happen with oil. But we can look at the factors that typically influence oil prices.

What’s next for the oil price?

The first is supply and demand. Oil functions in a global market, but nothing impacts the price of oil more than supply and demand. After all, the massive spike we saw in WTI crude back in March was sparked by a supply squeeze as global markets attempted to lock out Russian oil in the wake of the war.

The largest oil-producing countries, such as Saudi Arabia, have a powerful ability to increase or decrease their production of the black liquid. So if one of these countries decides to change its production output, it could have a big impact on the oil price.

But we must also consider economic demand, another massive influencer of the global oil price. Indeed, the falls that we have seen in oil in recent months are put down to the increased risk of a global recession that many commentators are seeing this year.

Oil is a key economic input into almost every form of economic activity. A booming economy means more trucks on the road, more transportation of goods and services and higher use of resources. But the opposite is also true.

If there were to be a global recession, or pullback in economic growth, oil demand would almost certainly fall, resulting in a fall in the oil price.

So there could be a great many numbers of things that could affect the oil price this September. And by extension, the fortunes of ASX oil shares. But, as with most things in the investing world, we shall just have to wait and see what happens.

The post What’s the outlook for the oil price in September? appeared first on The Motley Fool Australia.

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More reading

• Woodside dividend tripled: Here’s everything you need to know
• What’s boosting the Santos share price on Tuesday?
• Woodside share price lifts on 400% profit surge
• 5 things to watch on the ASX 200 on Tuesday
• What’s going on with the Santos share price today?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Omni Bridgeway Limited (ASX: OBL) share price is surging on Tuesday after the release of the company’s FY22 results.

At the time of writing, shares in the litigation financier are trading 11.44% higher at $4.58 apiece.

Let’s take a closer look.

Omni Bridgeway sees annual commitments

Key takeouts from the ASX 300 share’s results include:

• Record annual commitments of $463.3 million, a gain of 12% year on year
• Funds under management approaching $3 billion
• Growth in estimated portfolio value (EPV) of 35% year on year to $27.2 billion
• Implied embedded value (IEV) increased for the 12 months by 28% to $3.6 billion
• Net profit after tax (NPAT) of $6.5 million, up from an $18 million loss the year prior
• Participated for the first time in the emerging secondary market for litigation assets
• Launched global enforcement business and antitrust team in the US
• Finished the year with $314.1 million in cash and receivables

What else happened for this ASX 300 share?

It was a profitable 12 months for the company. It achieved a record level of investment commitments which expanded the group’s portfolio of investments across the globe.

Omni also generated $221 million in gross income and revenue during the year. This stemmed from a variety of sources, it says, including “66 completions, 23 partial completions and two partial sales”.

These were spread across various classes of litigation, investment funding structures, and locations.

Meanwhile, the company recognised a net profit after tax of $6.5 million, a substantial gain from FY21’s loss of $18.4 million.

It also entered into a new five-year institutional debt facility on 5 May 2022 providing $250 million in liquidity to replace existing debt.

Management commentary

Speaking on the results, managing director and CEO Andrew Saker said:

The group continued to execute on the critical pillars of its five-year business plan including through the refinancing its debt, the launch of a new enforcement focused fund, substantial growth in commitments and the expansion of its product offerings.

The impact from the delayed hearing of legal cases due to COVID is well behind us and these results demonstrate that our fund management model is delivering.

What’s next for Omni Bridgeway?

The company has a $550 million to $600 million commitment target, signifying a 20-30% year-on-year increase.

The ASX 300 share hopes to increase funds under management to between $4 billion and $4.5 billion, and will potentially launch additional funds to accelerate this number.

The Omni Bridgeway share price is up almost 24% year to date.

The post Guess which ASX 300 share is soaring 11% on a ‘significant improvement’ in FY22 appeared first on The Motley Fool Australia.

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• 3 ASX All Ordinaries shares cracking new highs on Friday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Shares of BlueBet Holdings Ltd (ASX: BBT) have slipped into the red today following the release of its FY22 results.

At the time of writing, BlueBet is trading more than 7.5% into the red at 43 cents apiece.

BlueBet shares dip as profit slumps in FY22

Key takeaways from the company’s results include:

• Turnover of $511 million, up 48.5% from FY21’s result
• Wagering revenue of $54.6 million, a gain of more than 53% from the year prior
• Gross profit growth of nearly 48% for the 12 months
• EBITDA loss of $5.5 million, down from a $4.7 million profit a year earlier
• Net loss after tax of $6.1 million, down from $3 million profit in FY21
• Net cash from operations down 84.7% year on year to $1.5 million

What else happened for BlueBet in FY22

After listing in July 2021, BlueBet saw strong results that outpaced forecast in its prospectus.

It maintained an “attractive 2.7x ratio of annual customer value to the cost of a first time depositor” by year’s end as well.

The company saw its net win margin grow by 10.7% year on year, and secured market access in 4 US states.

Furthermore, 3 additional platforms were launched in the Australian business to assist with the company’s US technology operations.

Despite incurring a loss after tax of $6.1 million, BlueBet notes that “[initial public offering] IPO proceeds largely intact due to cash generation from Australian business”.

Management commentary

Speaking on the announcement, BlueBet CEO, Bill Richmond said:

I am very proud of the progress we have made in our first year as a listed company, having achieved a number of major strategic milestones, including touching down in the US, developing a leading technology platform and continuing to grow our market share in Australia.

Our IPO provided us with the financial firepower to invest for growth. With our US B2C brand ClutchBet now live in the US, having taken our first bets in Iowa in this month, we are committed to executing the first stage of our differentiated ‘Capital Lite’ US strategy. The strength of our technology and our team is now on display as we move towards our B2B Sportsbook-as-a-Solution model in FY23.

BlueBet share price snapshot

In the past 12 months, the BlueBet share price is down nearly 83% as well as 70% this year to date. It trades in the red across all time frames.

The post BlueBet shares slide 7% despite solid revenue, margin growth in FY22 appeared first on The Motley Fool Australia.

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More reading

• Buy this ASX share that’s 80% cheaper than a year ago: expert

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BlueBet Holdings Ltd. 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 Bigtincan Holdings Ltd (ASX: BTH) share price is finding some momentum today.

Heading into lunch, shares in the sales enablement software provider are 3.7% in the green. The positive move puts the company’s share price at 70 cents. Meanwhile, the tech sector is experiencing a more subdued performance on Tuesday, with the S&P/ASX All Technology Index (ASX: XTX) up 0.91%.

This pleasing showing from Bigtincan follows the release of the company’s full-year FY22 results. Here are the highlights:

Big growth bolsters Bigtincan share price

• Annualised recurring revenue (ARR) up 126% year on year to $120.1 million
• Revenue up 143% to $108.6 million
• Gross margins improved by 3% to 88%
• Adjusted EBITDA of $4.1 million, up from $6.1 million loss
• Lifetime value (LTV) up 107% to $812 million
• LTV over customer acquisition cost (CAC) improved 13% to 4.0
• Cash at the bank of $38.9 million as at 30 June 2022

What else happened in FY22?

For a company still focused on scaling up, the full-year result for Bigtincan ticks a lot of boxes.

Most importantly, top-line growth continued its accelerating trend during the 12-month period. As noted above, revenue increased by 143% in FY22. This was fuelled by a mix of organic growth and acquisitions, split at 53% and 47% respectively. For comparison, revenue was dialled up by a smaller 41.5% in FY21.

It is worth noting that this growth did come at a cost. Operating expenses jumped 142% to $127 million in FY22 due to acquisition costs, new technology investments, network infrastructure, and engineering resources.

However, the software provider now attests to having 20% of the top 500 companies globally as Bigtincan customers. This considerable foothold in the market could be giving the Bigtincan share price a boost today.

What did management say?

In light of the record result, Bigtincan co-founder and CEO David Keane fleshed out the company’s achievements, stating:

In FY22, Bigtincan continued its strong trajectory of organic growth while adding scale through the transformative acquisition of Brainshark. We are happy with the quality of people, customers and technology that came with Brainshark and I’m very much looking forward to discussing Bigtincan’s newly integrated product offerings with our enterprise customers this year.

What’s next?

Management was confident enough in the stability of the business to provide guidance for FY23. It sure helps when the company’s revenue is 94.4% recurring in nature.

For FY23, Bigtincan management is expecting between $137 million and $143 million in ARR. Meanwhile, revenue is forecast to be in the range of $123 million to $128 million. At the midpoints, these figures would suggest improvements of 15.7% and 15.6% respectively.

Additionally, the team believes cash flow breakeven will be achieved in FY23.

Bigtincan share price snapshot

Unfortunately, the Bigtincan share price has not been an exception to the dismal performance of tech shares in 2022. So far this year, the ASX-listed sales enablement business has tumbled 35%.

As a result, the company now trades on a price-to-sales (P/S) ratio slightly below the Australian software industry average of 4.3 times. Based on the current Bigtincan share price, its P/S ratio is sitting around 3.5 times.

The post Bigtincan share price climbs amid 143% revenue explosion appeared first on The Motley Fool Australia.

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More reading

• How and where can an ASX investor make money in a dysfunctional share market?
• 2 ASX tech shares about to go cash-flow positive
• Loss-making ASX shares: Big investment opportunity or extreme risk?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BIGTINCAN FPO. The Motley Fool Australia has positions in and has recommended BIGTINCAN FPO. 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 Dreadnought Resources Ltd (ASX: DRE) share price is stretching up in early afternoon trade on Tuesday.

Investors are rallying the ASX resources share following a company announcement on its Mangaroon project in Western Australia.

At the time of writing, the Dreadnought share price is up 9.52% to 12 cents.

Options exercised over Mangaroon

In a lengthy update, the resource explorer first advised that First Quantum Minerals Limited (TSE: FM) has exercised its earn-in option over the Mangaroon project.

“First Quantum has funded the option period and can now earn an initial 51% interest by funding $12 million of expenditure by 1 March 2026,” Dreadnought said.

The agreement covers the base metal rights over five tenements located at the site.

Additional terms state that First Quantum may withdraw at any time during the earn-in phase with 0% interest; and that First Quantum must pay Dreadnought $150,000 by 30 September 2022.

A joint venture (JV) will then be formed if and when the earn-in requirements are satisfied.

First Quantum may elect to increase its interest to 70% up until a decision to mine. This reverts to a 49% interest if First Quantum decides to stop its funding expenditure.

What else did Dreadnought announce?

In a further possible boost to the Dreadnought share price, the company said nickel copper [Ni-Cu] sulphide mineralisation has been intersected in nine out of 12 recently completed reverse circulation (RC) holes at the site.

Assays from the drilling program are expected over the next month.

Speaking on the results, Dreadnought’s managing director Dean Tuck said the company was “looking forward” to working with First Quantum:

The potential of the money intrusion to host significant, highgrade Ni-Cu-PGE mineralisation has been underscored with nine out of twelve drill holes intersecting disseminated to nettextured Ni-Cu sulphides along both sides of a bladed to funnel shaped mafic intrusion.

With only a handful of relatively shallow holes drilled to date, the Dreadnought-First Quantum team has confirmed a large scale, fertile Ni-CuPGE system.

In the past 12 months, the Dreadnought share price has lifted 160%. It is also up 180% this year to date.

The post Here’s why the Dreadnought share price is zooming 10% higher today appeared first on The Motley Fool Australia.

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• 5 ASX shares that could rocket from a rare earths crisis: expert
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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the green on Tuesday amid rumours the company could be considering a major acquisition in the United States.

Flight Centre responded to media speculation on the potential transaction this morning. It said it is in various discussions regarding strategic opportunities.

The Flight Centre share price is currently trading at $16.94, up 1% on its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is bouncing higher following yesterday’s 2% plunge. It’s up 0.5% right now.

Meanwhile, Flight Centre’s home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has lifted 0.66%.

Let’s take a closer look at the latest news affecting the ASX travel share.

Flight Centre share price up amid US acquisition rumours

The Flight Centre share price is heading north amid rumours the company is considering snapping up Altour International.

Altour is one of the largest travel management companies in the US. It boasted more than $3 billion in sales in 2019 before the pandemic hit.

Rumours that the US giant could be a takeover target for its Australian counterpart were reported by The Australian yesterday.

The publication referred to comments made in Flight Centre’s latest earnings report released last Thursday. The report highlighted the potential for merger and acquisition (M&A) activity. Indeed, the company noted its medium-term capital strategy will allow for growth, both organic and through mergers and acquisitions.

The article also noted that Altour International could be worth as much as $700 million.

The response from Flight Centre

In response to the rumours, Flight Centre today told the market:

While it is company policy to not respond to media speculation, the company has had, and continues to have, various discussions with a number of parties regarding strategic opportunities.

The company assured the ASX it is compliant with listing rules and will continue to adhere to continuous disclosure obligations.  

The Flight Centre share price has slumped 10% year to date. It’s trading flat with where it was this time last year.

Meanwhile, the ASX 200 has dumped 8% since the start of 2022. It has also fallen 7% over the past 12 months.

The post Flight Centre share price up amid M&A rumours appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Here’s what brokers are saying about the Flight Centre share price
• Here are the top 10 ASX 200 shares today
• Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking
• Corporate Travel has resumed paying them, so when can we expect Flight Centre dividends?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. 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 Grange Resources Limited (ASX: GRR) share price is having an absolute shocker, tumbling 31% since the market close on Friday.

This spectacular drop follows the release of the iron ore pellet miner’s FY22 half-year earnings yesterday.

As my Fool colleague James reported, Grange Resources shares dropped 28% to close at 98 cents yesterday. The Grange Resources share price is falling further today, down 9.74% to 88 cents currently.

Why is the Grange Resources share price falling off a cliff?

Grange Resources revealed a sharp drop in earnings over the six months ending 30 June 2022.

Here are the key metrics of the report:

• Revenue from ordinary activities of $341 million, down 24% on the prior corresponding period (pcp)
• Statutory profit after tax of $132.2 million, down 36% pcp
• Pellet production of 1.27 million tonnes, steady on pcp
• Pellet sales of 1.18 million tonnes, down 2.5% pcp
• Average pellet price of US$174.96 per tonne, down from US$260.54 per tonne pcp
• Unit cash operating costs of $113.66 per tonne, up from $100.23 per tonne pcp
• Cash, cash equivalents, and liquid investments of $369.5 million (as at 30 June) compared to $443.9 million (as at 31 December 2021)
• Net assets of $887.7 million (as at 30 June), up from $871.2 million (as at 31 December 2021)
• Final dividend of 2 cents per share with 100% franking declared, payable on 30 September.

What else happened in 1H FY22?

The question Grange Resources shareholders might be asking is how the company mined the same amount of product as 1H FY21 but achieved less revenue and profit in 1H FY22.

The miner said higher energy costs were to blame for the rise in its operating expenses. It also cited volatility in iron ore prices.

Grange Resources said an escalation of COVID-19 locally had “some impact” on activity due to increased staff absenteeism because of isolation requirements.

What did management say?

In its statement, the company said:

Despite continued volatility and uncertainty as to the future direction of iron ore prices, the market continues to recognise the quality value in use premium for high quality, low impurity iron ore products sold by Grange.

What’s next?

Grange will continue to deliver into secured term offtake agreements for all products in 2022.

Grange Resources share price snapshot

The miner’s shares are up 10% in the year to date. This compares with a 9% dip in the S&P/ASX All Ordinaries Index (ASX: XAO).

The post Why has the Grange Resources share price plunged 30% so far this week? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Dicker Data Ltd (ASX: DDR) share price isn’t going anywhere on Tuesday.

This comes after the company released its interim results for the 2022 financial year and announced a capital raise.

Currently, the technology distributor’s shares are frozen at $11.48 apiece.

Dicker Data share price records growth across all financial key metrics

• Total revenue up 36.5% to $1,459.4 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) up 19.5% to $61.2 million
• Net profit after tax (NPAT) up 7% to $34.3 million
• Earnings per share (EPS) up 6.9% to 19.85 cents
• Net cash of $26.78 million as at 30 June 2022

What happened in the first half?

For the 6 months ended 30 June, Dicker Data achieved a 36.5% increase in revenue of $1,459.4 million. The Exeed acquisition, which was completed on 6 August 2021, drove organic growth from existing and new vendors.

In Australia, total revenue lifted by 20.7% to $204.1 million, and New Zealand sales revenue jumped 226.6% to $186.4 million.

Dicker Data experienced growth across all segments, with hardware and virtual services sales at $1,085 million, up 35%. Software sales stood at $365.5 million, up 41.7%, and now represent 25% of total group revenue. Services revenue came to $6.5 million, up 34.1%, with the services business converting a number of previously deferred enterprise projects.

Operating expenses rose by $19.5 million, an increase of 38.2% on the previous corresponding period. The largest increase came from additional staff costs related to the Exeed Group acquisition and onboarding of staff transferring from the Hills SIT acquisition.

What did management say?

Dicker Data chair and CEO, David Dicker had this to say about the results:

This is another outstanding result and one that our entire team should be proud of. We continue to perform above expectations, despite the headwinds caused by supply-chain and logistical disruptions.

It is pleasing to see our recent acquisitions translating into positive results for our shareholders and I am confident that the benefit to our shareholders will continue to grow as we further bed down the operations and as these new divisions leverage the scale of the wider business.

What’s the outlook?

Looking ahead, Dicker Data didn’t provide any guidance for the second half of 2022 but stated that demand remains strong.

Growth is expected to continue across the company’s entire product portfolio, particularly with the Hills Security and IT (SIT) division. Access to this new market segment represents a significant untapped opportunity as cybersecurity has become a focus for all sectors.

Capital raise

In addition to the results, Dicker Data advised it is undertaking a fully underwritten placement to raise $50 million.

The placement will be conducted at an issue price of $10.30 per new share, representing a 10.3% discount from the last closing price of $11.48 per share.

Approximately $30 million will be used to fund the expansion of the company’s Kurnell warehouse to increase capacity by 70%. Construction is expected to commence by October 2022.

The remaining $20 million will be allocated towards working capital to provide Dicker Data with increased balance sheet flexibility.

The Dicker Data share price is anticipated to resume trading on Thursday 1 September.

The post Dicker Data share price placed on ice amid HY 2022 results and capital raise appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data Limited. 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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