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In afternoon trade on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on course to snap its losing streak. The benchmark index is currently up 0.5% to 6,998.8 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 7% to $71.62. Investors have been buying this pizza chain operator’s shares following the release of its full year results. Domino’s reported a 4.6% increase in global sales to $3.92 billion but a 12.5% decline in net profit after tax to $165 million. While the latter was a touch lower than consensus estimates, this has been overlooked due to expansion news. Domino’s revealed that it is expanding into Malaysia, Singapore, and Cambodia through the acquisition of 287 stores for $214 million.

Iluka Resources Limited (ASX: ILU)

The Iluka share price is up over 8% to $10.25. This morning Iluka released its half year results and revealed a 70.5% increase in underlying EBITDA to $525.5 million. This allowed the company to more than double its interim dividend to 25 cents per share.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 9% to $14.25. This morning the investment platform provider released its full year results and revealed a 19.6% increase in revenue to $173.9 million and a 2.7% lift in net profit after tax to $55.6 million. Netwealth’s profit was largely in line with consensus estimates.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price has jumped 11% to $59.02. This follows the release of the logistics solutions company’s full year results. WiseTech reported a 25% increase in revenue to $632.2 million and a 71% increase in underlying net profit after tax to $181.8 million. The latter was ahead of the consensus estimate of $175.7 million.

The post Why Domino’s, Iluka, Netwealth, and WiseTech shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• WiseTech share price surges 11% on record profits
• Domino’s share price sizzles 10% higher following FY22 report, Asian expansion
• Netwealth lifts full-year dividend on record inflows
• WiseTech Global hikes full-year dividend by 71% as profits surge higher
• Netwealth share price rises 9% on strong revenue growth in FY22 results

Motley Fool contributor James Mickleboro 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 Netwealth and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth and WiseTech Global. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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 Telstra Corporation Ltd (ASX: TLS) share price is heading south during the early afternoon on Wednesday.

At the time of writing, the telco provider’s shares are down 2.06% to $4.05.

Why are Telstra shares slipping on Wednesday?

Following the release of the company’s full-year results, investors are eyeing Telstra shares as they go ex-dividend today.

The ex-dividend date is particularly important as it determines which shareholders will receive the company’s latest dividend.

If you held Telstra shares at yesterday’s market close, you will be eligible for the final dividend.

However, if you didn’t own them and bought them today, the dividend will go to the seller.

The reason why the shares are falling today is because investors tend to secure the dividend and then sell for a quick profit. Usually, the share drops by the same amount of the dividend that is to be paid out.

What does this mean for Telstra shareholders?

For those eligible for the Telstra dividend, you’ll receive a payment of 8.5 cents per share on 22 September. The dividend is fully-franked.

Notably, it’s the first time the board has increased the dividend since 2015 following the success of the T22 strategy.

This brings the full-year dividend to 16.5 cents apiece, which equates to a 115% earnings payout ratio. This follows Telstra’s updated capital management framework to “maximise fully franked dividend and seek to grow over time”.

Are Telstra shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the Telstra share price.

According to ANZ Share Investing, the team at Morgans raised its price target by 0.9% to $4.60 per share. Based on today’s price, this implies an upside of 13.6% for investors.

On the other hand, Macquarie analysts had a different tone, cutting its price target by 7.3% to $3.80. This implies a downside of 6.2% from where Telstra shares trade today.

Telstra share price snapshot

Looking at the past 12 months, the Telstra share price has risen by almost 3% despite difficult trading conditions.

Telstra shares reached a multi-year high of $4.31 in January and are only 6.7% from breaking that feat again.

Telstra commands a market capitalisation of roughly $46.73 billion and has a dividend yield of 2.65%.

The post Why is the Telstra share price on the slide today? appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ASX 200 dividend shares that brokers love
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• 3 ASX All Ordinaries shares trading ex-dividend tomorrow
• Hoping to ring in the latest Telstra dividend? Here’s what you need to do
• How have ASX dividend shares been performing this earnings season?

Motley Fool contributor Aaron Teboneras has positions in Telstra Corporation Limited. 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Macquarie 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 FINEOS Corporation Holdings PLC (ASX: FCL) share price is heavily in the red today after the insurance software company released its earnings card for FY22.

Shares in the ASX tech company are trading down 6.14% at $1.53 apiece at the time of writing. They previously touched a high of $1.68 shortly after the market opened this morning.

Let’s go over what the company announced.

What did Fineos report?

• Total revenue up 17.5% year-over-year (YoY) to €$127.2 million (A$183.38 million)
• Gross profit up 15.3% YoY to €$83 million (A$119.62 million)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 28.8% YoY to €$6.7 million (A$9.66 million)
• Annual recurring revenue (ARR) up 23.4% YoY to €$56.4 million (A$81.27 million)
• Statutory net loss after tax of €$26 million (A$37.47 million)

Fineos advised that it outperformed previous guidance for its subscription revenues, which grew by 34.3% to A$77.52 million and contributed significantly to its top and bottom lines. The organic growth of its services was stated to be 33.5%.

Fineos integrated several acquisitions into the business in FY22, including Spraoi’s suite of machine learning and artificial intelligence products. These integrations helped to expand revenues through cross-selling opportunities and inflated the company’s sales pipeline for FY23.

What else happened in FY22?

The company’s balance sheet strengthened through an influx of cash totalling A$63.84 million, before costs, from its share placement and purchase plans.

Fineos also said that its dominant North American operating segment grew to contribute more to the company’s top line, with total contribution growing from 73% to 79% of revenue.

Its headcount remained more or less the same, with 1,075 staff members and contractors. This is expected to stay the same in FY23.

What did management say?

Fineos founder and CEO Michael Kelly said:

FY22 has seen yet another year of strong growth across the key metrics we benchmark our business against, underpinned by our delivery on strategy.

Importantly, we achieved or exceeded the guidance we provided to the market even with the incredibly challenging operating environment faced by most businesses.

I would like to thank all our team for their continued dedication and support that enabled FINEOS to achieve several significant strategic milestones over the past year.

What’s next?

Fineos expects revenue for FY23 to fall within the guidance range of A$194.59 million and A$201.80 million, supported by a pipeline it built in FY22 through integrating its acquisitions into its operations.

More broadly, the company notes that it has a positive cash balance with no debt and that its trajectory means it is likely to achieve positive free cash flow in FY24.

Fineos share price snapshot

The Fineos share price is down 66.8% year to date. This is severely underperforming the S&P/ASX 200 Index (ASX: XJO), which is 7.67% lower over the same period.

The company’s market capitalisation is $488 million from today’s recent price action.

The post Fineos share price sinks 6% on $37.47 million loss appeared first on The Motley Fool Australia.

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More reading

• ‘On track’: Fineos share price climbs 6% on strong quarterly

Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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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In some much-needed relief for ASX investors, the S&P/ASX 200 Index (ASX: XJO) has finally rebounded today after the heavy losses we’ve seen this week. At the time of writing, the ASX 200 has gained a healthy 0.64% and is back over 7,000 points. But that’s nothing compared to the gains that the WiseTech Global Ltd (ASX: WTC) share price is seeing.

WiseTech shares are on fire today. The logistics technology company has gained an impressive 11.19% so far this Wednesday to $58.93 a share. That’s after closing at $53 yesterday and opening at $55.48 this morning.

Earlier in today’s session, the company rose as high as $59.32 a share, which is just a whisker below WiseTech’s 52-week high of $60.40.

WiseTech share price leaps 11% on bumper earnings report

This, of course, comes after WiseTech dropped its FY2022 earnings report before market open this morning.

As we went through at the time, this report saw WiseTech deliver some strong numbers. The company announced a 25% surge in revenues compared to FY2021 to $632.2 million.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) also rose by 54% to $319 million. Meantime, statutory net profit after tax (NPAT) was up 80% to $194.6 million.

WiseTech also hiked its final dividend. Last year saw the company fork out 3.85 cents per share. But this year, WiseTech will be paying 6.4 cents per share, fully franked.

That’s the biggest dividend WiseTech shares have ever paid out, easily eclipsing the interim dividend of 4.75 cents that was doled out in April.

Once this dividend is paid out on 7 October, the company will have a dividend yield of 0.19% on today’s share price.

So it seems investors have given a full-throated endorsement of WiseTech’s earnings today, going off what is happening to the company’s shares.

Despite today’s massive share price gains, the WiseTech share price has just edged into the green in 2022 thus far, gaining 0.6% since the start of the year. However, investors have enjoyed a pleasing gain of 62.6% over the past 12 months.

At the current WiseTech share price, This ASX 200 tech company has a market capitalisation of $19.23 billion, with a trailing dividend yield of 0.15%

The post WiseTech share price surges 11% on record profits appeared first on The Motley Fool Australia.

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More reading

• Netwealth lifts full-year dividend on record inflows
• Lottery Corporation share price drops despite $373 million profit
• WiseTech Global hikes full-year dividend by 71% as profits surge higher
• Netwealth share price rises 9% on strong revenue growth in FY22 results
• Coles shares trade on fully-franked yield of 3.5% after reporting higher profits

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 positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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) has returned to form on Wednesday after a difficult couple of days. In afternoon trade, the benchmark index is up 0.65% to 7,006.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Audio Pixels Holdings Ltd (ASX: AKP)

The Audio Pixels share price is down 10% to $15.20. This morning the digital speaker developer announced a $10 million placement to institutional and sophisticated investors. These funds were raised at a huge discount of $14.00 per new share. The proceeds will primarily go towards development, marketing and working capital, including repayment of outstanding debt. Maybe this means the company’s technology will finally be ready for commercialisation in the near future after years and years of development.

Coles Group Ltd (ASX: COL)

The Coles share price is down 3.5% to $18.06. This follows the release of the supermarket giant’s full year results for FY 2022. Although the company beat consensus estimates with its net profit after tax of $1,048 million, its outlook commentary appears to have spooked investors. Management warned that both its Liquor and Supermarket sales growth are expected to be impacted by the cycling of COVID-19 lockdowns in the first half of FY 2022 and price inflation in the second half.

EML Payments Ltd (ASX: EML)

The EML share price is down 14% to 85.7 cents. Things have gone from bad to worse for this payments company. This morning the embattled company revealed that it has identified fraudulent activity within its Sentenial business, with losses that could amount to $7.9 million. This is from fraudulent merchants within the debt processing business.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 8% to $4.31. This appears to have been driven by a negative reaction to this infection control company’s full year results from brokers. One of those was Goldman Sachs. In response to its results, this morning the broker reiterated its sell rating with a price target of $3.50.

The post Why Audio Pixels, Coles, EML, and Nanosonics shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why is the EML share price plummeting 15% on Wednesday?
• Coles shares trade on fully-franked yield of 3.5% after reporting higher profits
• Coles share price slides 5% as inflation hampers FY23 growth outlook
• 5 things to watch on the ASX 200 on Wednesday
• Why did the EML share price tumble 12% on Tuesday?

Motley Fool contributor James Mickleboro 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 EML Payments and Nanosonics Limited. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET, EML Payments, and Nanosonics 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 Domino’s Pizza Enterprises Ltd. (ASX: DMP) share price is surging today after the fast food business announced its FY22 result and revealed Asian expansion plans.

At the time of writing, Domino’s shares are trading for $71.09 each, 6% higher, after reaching an intraday high of $73.94 a share this morning. That was a jump of more than 10%.

The 2022 financial year was a tricky one for Domino’s because it was trying to beat FY21’s numbers, which included boosted sales during COVID-19 lockdowns.

It was also tough for Domino’s to maintain its momentum in Japan after that country’s COVID-19 restrictions were lifted.

Domino’s profit drops

While Domino’s network sales increased by 4.6% to $3.92 billion, earnings before interest and tax (EBIT) dropped 10.5% to $262.9 million. Underlying net profit after tax (NPAT) also declined 12.5% to $165 million.

Australia and New Zealand EBIT grew $3.3 million, or 2.8% in percentage terms. At the same time, Asian EBIT sank 23.1%, or $25.6 million in dollar terms, due to a “rapid change in sales in Japan, following the lifting of a state of emergency”.

European EBIT fell 11%, or $9.7 million in dollar terms, with the largest driver being the increased investment in rebuilding the Danish business.

The company said it has reached a challenging but important milestone, as it transitions from ‘living with COVID’ to facing historic inflation.

Trading update

At the start of FY23, Domino’s revealed its network sales had fallen by 2.4% and same store sales had fallen 1.1%. But, it had added 13 new stores and noted that it was competing against very high sales in the prior comparable period. The Domino’s share price can be affected by how trading is going.

Management said that the business had a choice to be defensive or invest for growth at the start of COVID-19. It is continuing to choose to invest for growth.

Domino’s CEO and managing director Don Meij said a few things about the outlook, including the following about growth expectations for FY23:

With menu innovation in all markets and new, app-first technology to roll out this year – there is positive sales momentum, and we expect to be within our 3%-6% outlook for same store sales this year.

New store construction will rely on our ability to navigate inflation, and accordingly franchise profitability – our progress, combined with franchisee appetite, and investment in our people through our path to excellence, gives us confidence we will reach our store rollout target this year of 8%-10% new store openings.

Opening more stores, closer to customers, improves unit economics, builds customer satisfaction and loyalty, and will help us be the most efficient, sustainable delivery QSR.

We are a business focused on long-term growth, and we look forward to delivering.

According to reporting by The Australian, the UBS analyst Shaun Cousins said that the result missed earnings estimates due to weakness in Europe and that the organic store growth outlook was lowered, although long-term milestones were unchanged.

Same store sales growth was also below UBS estimates. But, the acquisitions in Asia were “positive”.

Asian expansion

Domino’s has entered into binding agreements to buy Domino’s Pizza businesses in Malaysia (240 stores), Singapore (38 stores), and Cambodia (nine stores).

The initial purchase price is A$214 million with an earnout payment to be determined over the next two to three years. The total consideration could be equivalent to A$142 million.  

The deal is priced at 10.1 times FY22’s normalised earnings before interest, tax, depreciation and amortisation (EBITDA).

As a result of the acquisition, Domino’s Pizza Enterprises is increasing its future store count outlook in Asia from 2,400 stores to 3,000 stores by 2033.

This deal adds around 5% to earnings per share (EPS) on a pro forma FY22 basis without synergies and excluding integration, reorganisation, and transaction costs.

Domino’s share price snapshot

Over the last month, Domino’s shares have risen by more than 3%.

The post Domino’s share price sizzles 10% higher following FY22 report, Asian expansion appeared first on The Motley Fool Australia.

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More reading

• Domino’s Pizza share price in focus as full-year sales near $4b
• 2 excellent ASX growth shares that analysts say are buys
• Here are 3 top ASX growth shares that experts are tipping as buys
• Brokers name 3 ASX shares to buy today
• Is it a problem for shareholders that Italians don’t like Domino’s Pizza?

Motley Fool contributor Tristan Harrison 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 Dominos Pizza Enterprises 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 BPH Energy Ltd (ASX: BPH) share price is on fire.

The ASX energy share is up another 11% today, putting it up an eye-popping 310% since Monday’s closing bell.

So, why are investors sending the BPH Energy share price skywards?

What’s piquing ASX investor interest? 

The BPH Energy share price has former prime minister Scott Morrison to thank for its stellar performance.

Well. Sort of.

As you’re likely aware, during the COVID-19 pandemic Morrison secretly appointed himself minister for home affairs, treasury, health, finance and resources.

Last week it emerged that in his self-appointed role as Resources Minster, Morrison nixed the approval for BPH Energy’s Petroleum Exploration Permit 11 (PEP11) offshore gas exploration project in the Sydney Basin.

Asset Energy (a wholly owned subsidiary of BPH’s investee Advent Energy Ltd) holds an 85% stake in the project; Bounty Oil & Gas NL (ASX: BUY) holds the other 15%.

So how is Morrison helping send the BPH Energy share price rocketing?

Here’s what the company reported yesterday:

In light of the recent media coverage regarding former Prime Minister Scott Morrison’s use of ministerial powers to block the PEP-11 gas exploration licence, the company is currently undertaking a full review of its options, including potential for legal channels, as part of its strategy to protect shareholder value.

Asset Energy had already commenced proceedings in the Federal Court of Australia in June. The company alleges that Morrison “was biased and failed to afford procedural fairness in his decision not to grant an extension of term and a suspension and variation of the minimum work requirements under PEP-11”.

BPH Energy noted that Prime Minister Anthony Albanese has sought advice regarding whether Morrison’s “appointments and decisions, which includes the PEP-11 decision, were beyond power”.

The company also said the PEP-11 project and proposed carbon storage project have “potential national significance”.

According to BPH Energy:

It addresses both current gas shortages and the objective of Net Zero Emissions. Advent has committed to ensuring that all the gas produced from the project is available for Australian domestic supply.

BPH Energy share price snapshot

With the recent big gains, the BPH Energy share price is up 160% in 2022. That compares to a year-to-date loss of 9% posted by the All Ordinaries Index (ASX: XAO).

The post Why has the BPH Energy share price exploded 310% in 2 days? appeared first on The Motley Fool Australia.

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More reading

• Domino’s share price sizzles 10% higher following FY22 report, Asian expansion
• Why is the EML share price plummeting 15% on Wednesday?
• Ingenia share price slips despite record home settlements and 38% profit bump in FY22
• PSC Insurance share price rallies 5% on profit and dividend boost
• Netwealth lifts full-year dividend on record inflows

Motley Fool contributor Bernd Struben 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 EML Payments Ltd (ASX: EML) share price is tumbling after exiting a brief trading halt on news of fraud this morning.

The company has identified fraudulent activity within its Sentenial business. The resulting losses could amount to $7.9 million.

The EML share price is currently trading at 84.5 cents, 15.08% lower than its previous close.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) payments solution provider.

EML share price plunges on fraud finding

The EML Payments share price is plunging lower on Wednesday after the company announced it identified a set of fraudulent merchants within Sentenial’s debt processing business.

The company believes the fraudulent activity could leave a dint of up to 5.5 million euros ($7.9 million). Though, the ultimate impact will depend on the success of recovery actions initiated by the company.

EML is working to investigate and understand the circumstances surrounding the fraud, which mainly occurred this month and was brought to the company’s attention on Tuesday.

It has committed to inform the market of any further material findings.

The ASX 200 tech company completed its acquisition of Sentenial in September. The business provides open banking and account-to-account payments to European customers.

Today’s tumble sees the EML share price trading at its lowest point since 2016.

That’s despite the 6% surge experienced by the stock following the release of its full-year earnings and news of an on-market buyback earlier this week.

The tech share has dumped 74% since the start of 2022. It’s also trading 78% lower than it was this time last year.

For context, the S&P/ASX 200 Information Technology Index (ASX: XIJ) has slumped 28% year to date. It has also fallen 34% over the last 12 months.

The post Why is the EML share price plummeting 15% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today
• Why EML, Nearmap, NIB, and Nick Scali shares are charging higher
• EML share price leaps 11% on results and share buyback
• These are the 10 most shorted ASX shares

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 positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. 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 Ingenia Communities Group (ASX: INA) share price is wobbling today after the seniors housing and family holidays company released its full-year FY22 results.

Ingenia shares started the session on Wednesday 1% lower at $4.62. They gradually rallied after the company released its results shortly after the market open to trade as high as $4.73.

At the time of writing, the Ingenia share price has slipped 0.43% to $4.65.

What did Ingenia Communities report?

The highlights of Ingenia’s report are below:

• Revenue of $338.1 million, up 14% on the prior corresponding period (pcp)
• Statutory profit of $100.6 million, up 38% pcp
• Underlying profit of $87.9 million, up 14% pcp
• Earnings before interest and taxes (EBIT) of $101.7 million, up 8% pcp
• Underlying earnings per share (EPS) of 23.3 cents, down 1% pcp
• Operating cash flow of $114.9 million, down 17% pcp
• Record 409 new home settlements “with significant growth forecast in coming years”
• Strong balance sheet maintained with $325 million in cash and undrawn debt
• Met FY22 guidance with EBIT growth of 8% and underlying EPS down 0.3 cents per share pcp
• Final distribution of 5.8 cents per share to be paid on 22 September
• Full-year distribution of 11 cents per share, up 4.8% pcp.

What else happened in FY22?

Ingenia has a residential property development and management division and a holidays division.

The company said its operating cash flow was lower despite a growing revenue base due to lost tourism earnings and reduced settlements resulting from COVID-19 impacts and bad weather.

In the residential real estate business, it settled 409 new homes and expanded its development pipeline by more than 50% to 6,580 sites.

lngenia CEO Simon Owen said: “During the period, we built a greater exposure to markets benefiting from internal migration and price growth, with 90% of our future development pipeline now located in Queensland and high growth coastal/regional markets.”

Ingenia described its residential rental income as “stable and predictable – and is growing”. Rental revenue went up 6% in FY22 with “continued high occupancy”.

Regarding the holidays division, Ingenia says its 40 East Coast holiday parks are “benefitting from buoyant domestic travel demand”.

Underlying EPS fell “due to an increase in securities on issue following the $475 million equity raising in November 2021, and COVID/supply chain impacts on holidays and development earnings”.

The company said it finished the year with “a well-positioned balance sheet” and with “debt capacity and capital recycling to underpin future investment”.

What did management say?

Owen said:

The result showcases that Ingenia’s key strategic drivers remain intact – an ageing population, solutions to address housing affordability, internal migration patterns and domestic travel to support long term demand.

The Group has continued to enhance its scale and market reach, with total assets increasing by more than 60% over the year.

What’s next?

In FY23, Ingenia says it expects a “material increase in the contribution from the operating business as it benefits from an expanded residential rental base and increasing holiday occupancy and rates”.

Owen said:

We remain confident in the ability of our development business to deliver growth, and prices remain affordable for downsizing residents, with flexibility to respond to changes in market conditions and consumer demand.

The Group has multiple projects commencing in FY23, with a target of 2,000 — 2,200 settlements over the three years to end FY25. Ingenia’s balance sheet provides capacity for this growth.

Regarding the holidays business, Owen said:

We expect ongoing demand as families and grey nomads continue to value local travel over international. Forward bookings through to August 2023 are up more than 30% (versus 2022) and we are seeing a trend towards the booking out of shoulder seasons, which will support annualised occupancy growth.

Ingenia provided FY23 guidance of 30% to 35% growth in EBIT and 5% to 10% growth in underlying EPS. It is targeting 525 to 550 new home settlements in FY23.

Ingenia share price snapshot

The Ingenia share price has fallen 27% year to date. Based on today’s share price and the full-year distribution for FY22, Ingenia is offering investors a yield of 2.3%.

The post Ingenia share price slips despite record home settlements and 38% profit bump in FY22 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 PSC Insurance Group Ltd (ASX: PSI) share price is up 5.37% today after the company released its FY22 full-year results.

The shares opened at $4.80 today — 5.26% higher than the previous closing price of $4.56. At the time of writing, the PSC Insurance share price is $4.81.

PSC Insurance offers insurance services in Australia, the United Kingdom, and New Zealand. It receives the bulk of its revenue from the UK. Let’s see what the company reported today.

What did PSC Insurance report?

The highlights of the report are as follows:

• Underlying revenue of $254.3 million, up 23% on the prior corresponding period (pcp)
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $93.5 million, up 30% pcp
• Underlying NPATA of $64 million, up 40% pcp
• Earnings per share (EPS) of 19.3 cents, up 28% pcp
• Final dividend of 7.5 cents per share, franked at 60%, payable on 12 October
• Total dividends of 12 cents per share in FY22, up 14% pcp

In its investor presentation released today, PSC said the report showed a “continuation of a long track record of growth, with ~ 20%+ compound annual growth rate (CAGR) across all financial metrics a testament to PSC’s empowered business model”.

What else happened in FY22?

The company said its FY22 EBITDA was “stronger than we envisioned” and driven by better organic growth and performances from the acquired businesses.

This time last year, the company forecasted an EBITDA range of $84 million to $89 million, which was then upgraded to $87 million to $92 million in February 2022.

PSC said recruiting high-performance professionals and purchasing businesses had enabled the company to grow in FY22.

In its statement, the company said: “Expansion of our team this year has seen us bring some wonderful groups of people into PSC via the merger with a number of businesses, the two largest of which are the teams at Alliance and AWIB.”

PSC commented further:

Looking forward we are showing signs of change and moves to respond to a changing environment.

Our partnership with AUB Group Ltd (ASX: AUB) on a large retail broking opportunity in the UK is an example. We have not traditionally partnered with other groups however are delighted to be doing it with AUB in this situation.

With the competition for broking businesses in the UK continuing to heat up, we need to be open to looking for different paths to continue our growth there. The joint venture with AUB is a good indication of our flexibility to change as our environment changes.

What’s next?

In FY23, PSC expects an annualised impact of approximately $2.6 million from the acquisitions completed in FY22. PSC also expects “continued organic growth across all of our operating segments”.

The company warned that wages costs might go up in FY23 due to strong competition for workers in all markets. In addition, now that many COVID-19 restrictions have been lifted, the company also expects travel and entertainment costs to increase as members meet more often “which should also commensurately lead to revenue growth with a small lag”.

Looking ahead, PSC stated:

We expect that the Tysers UK ‘retail’ joint venture with AUB will settle before the end of the calendar year. Based on receiving a contribution from the joint venture for a six month period, we would expect it to generate ~ A$4-5m in a share of EBITDA for FY23 (being a 50% contribution for half a year).

After accounting for the expected FY23 contribution of the Tysers UK ‘retail’ joint venture, we
expect an underlying EBITDA range of $105-110m and an underlying NPATA range of $70-73m.

PSC said “a number of additional acquisitions” are expected in FY23 but are not included in the guidance.

PSC Insurance share price snapshot

The PSC Insurance share price is up 1.8% year to date and up 15.5% over the past 12 months.

This compares to an 8.5% drop in the S&P/ASX All Ordinaries Index (ASX: XAO) in the year to date.

The All Ords is also down 6.7% over the past 12 months.

The post PSC Insurance share price rallies 5% on profit and dividend boost appeared first on The Motley Fool Australia.

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More reading

• Ingenia share price slips despite record home settlements and 38% profit bump in FY22
• Netwealth lifts full-year dividend on record inflows
• Why Ethereum, Polkadot, and Dogecoin are rallying nicely today
• How did the Zip share price respond last time the company reported?
• Lottery Corporation share price drops despite $373 million profit

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 positions in and has recommended PSC Insurance Group. The Motley Fool Australia has recommended Austbrokers Holdings Limited and PSC Insurance Group. 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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