Tag: Motley Fool

The Netwealth Group Ltd (ASX: NWL) share price is up 8.7% to around $14.24 in Wednesday trading after the financial services company reported full-year total income up 20% to $173 million and net profits after tax (NPAT) up 3% to $56 million.

The company declared a fully franked final dividend of 10 cents per share, taking total FY22 dividends to 20 cents per share, an increase of 8% compared to FY21.

The Netwealth final dividend will be paid to eligible shareholders on 29 September 2022. Netwealth shares go ex-dividend on 30 August. 

Based on a Netwealth share price of $14, the stock trades at 63 times earnings and on a fully franked dividend yield of 1.43%.

Looking ahead, Netwealth said it anticipates net inflows to be in the range of $11 billion to $13 billion in FY23 as it continues to focus on profitable growth.

Over the past 12 months, Netwealth shares have fallen 8%, compared to a fall of 6.6% in the S&P/ASX 200 Index (ASX: XJO). Fellow financial services stock HUB24 Ltd (ASX: HUB) shares have fallen around 7% in the last year.

The post Netwealth lifts full-year dividend on record inflows appeared first on The Motley Fool Australia.

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More reading

• 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
• BrainChip share price up on 529% revenue surge

Motley Fool contributor Bruce Jackson has positions in Hub24 Ltd and Netwealth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia has positions in and has recommended Hub24 Ltd and Netwealth. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It’s been a rather difficult market to be a crypto investor of late. But despite nearly a week of consistent selling pressure, various large-cap cryptocurrencies are recovering nicely today. Ethereum (CRYPTO: ETH), Polkadot (CRYPTO: DOT) and Dogecoin (CRYPTO: DOGE) have surged 6.3%, 6.1%, and 3.1% higher, respectively, over the past 24 hours. 

These moves come as investors appear to be buying yet another bear market dip, as enthusiasm around key catalysts such as the upcoming Ethereum merge outweigh concerns around a heated debate brewing in the Ethereum community about whether validators should effectively censor certain transactions. 

Interestingly, Ethereum and Polkadot also took the top two spots in terms of most-developed blockchain ecosystems, according to a recent report by crypto analytics website Santiment using publicly available information. Investors appear keen to focus on blockchains with consistent and sustained development growth.

Dogecoin’s price action, while more subdued than its peers, appears to align relatively closely with the overall price action of the market today.

So what

Ethereum, Polkadot, and Dogecoin are three tokens many investors watch closely as both high-growth projects and gauges of sentiment in the crypto world. Today’s interesting shift toward a more bullish risk-on perspective from investors and traders is noteworthy, and all three tokens have benefited from this catalyst. But the growth metrics supporting Ethereum and Polkadot in particular are worth considering for investors taking a long-term view.

That’s because while cryptos are difficult to value, many consider the true value of a given token as representative of the value of all projects on its blockchain. For Ethereum or Polkadot, which are tokens representing blockchains with massive ecosystems, more growth should mean, in theory, higher token prices. Continued and sustained growth over a long period of time, therefore, is important to see for investors with a long-term investing horizon.

Now what

For Ethereum and Polkadot specifically, the upcoming Ethereum merge, anticipated to take place in mid-September, is a massive catalyst. This upgrade will transition the Ethereum blockchain to a more energy-efficient proof-of-stake validation mechanism. Doing so carries great potential for improved efficiency over time, albeit with some specific risks.

While both tokens have rallied substantially off their June lows, it’s clear the market is still taking a wait-and-see approach to how this merge will pan out. Despite today’s bullish price action, some investors could be inclined to stay on the sidelines.

Although I think this upgrade should be a net positive, there are certainly risks involved for these tokens. Accordingly, it will be interesting to see how these tokens perform in the weeks to come.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum, Polkadot, and Dogecoin are rallying nicely today appeared first on The Motley Fool Australia.

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More reading

• Why Ethereum, Solana, and Dogecoin are falling today
• 3 cryptos I would regret not buying on the dip
• The Aussie-born crypto platform taking on Ethereum
• 2 cryptos that could lead the market recovery
• Why Bitcoin, Ethereum, and Dogecoin are slumping today

Chris MacDonald has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Zip Co Ltd (ASX: ZIP) share price has tumbled 58% since the company delivered its half-year results to the market.

The ASX buy now, pay later (BNPL) provider has been through a challenging year impacted by unfavourable market conditions. This includes potential regulatory headwinds and rising bad debts due to strong inflationary movements.

At Tuesday’s market close, Zip shares finished 6.12% lower at 92 cents.

Below, we take a closer look to see if investors can learn anything from the company’s last earnings season.

What happened in the first half of FY 2022?

Investors weren’t able to trade Zip shares on 28 February as the company requested a trading halt following its half-year results.

Zip explained that it signed an agreement to acquire rival BNPL provider Sezzle Inc (ASX: SZL) for approximately $491 million.

In addition, Zip undertook a $198.7 million capital raise to “support its growth and execute on the potential synergies from the transaction”.

The trading halt came in a timely manner as the company reported widening losses on the bottom line, despite operating income almost doubling.

Zip co-founder and global CEO Larry Diamond said:

We acknowledge there has been a shift in the external environment, arguably quicker and more severe than first forecasted. Accordingly, we have refined our strategy with a focus on sustainable growth in our core markets, maintaining strong unit economics – particularly credit performance, broader cost management, right-sizing our internal footprint, which accelerates our path to profitability.

Once the trading halt was lifted on 1 March, investors began to offload Zip shares.

In fact, from 28 February to 15 March, the Zip share price tanked 36% to a 52-week low, before taking a slight breather.

Eventually, Zip shares hit a multi-year low of 43.5 cents in late June on the back of extreme volatility on the ASX.

There has been a small rebound in the past couple of months. But whether the Zip share price can regain its previous highs depends on the company’s upcoming results.

No doubt, investors will be eagerly waiting for the release of Zip’s full-year results on Thursday.

Zip share price snapshot

As pressure mounts on the BNPL industry, the Zip share price has not been immune – falling almost 90% over the past 12 months.

This means its shares would need to climb 900% to break even from this time last year.

Based on the current price, Zip presides a market capitalisation of around $633 million.

The post How did the Zip share price respond last time the company reported? appeared first on The Motley Fool Australia.

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More reading

• Looking to buy Zip shares? Here’s what to look for in tomorrow’s results
• Why is the Zip share price sinking 5% on Monday?
• Why is the Block share price tumbling 6% today?
• These are the 10 most shorted ASX shares
• How does Zip’s ‘Operation Blue Sky’ stack up against Block’s battening down of the hatches?

Motley Fool contributor Aaron Teboneras 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 ZIPCOLTD FPO. 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 Lottery Corporation Ltd (ASX: TLC) share price is edging into the red in midday trading amid the company announcing its full-year results for FY22.

Shares of the lotteries and Keno operator are currently fetching $4.365 each, a 1.69% drop on yesterday’s closing price. Earlier today, The Lottery Corporation share price hit an intraday high of $4.53.

Let’s go over the highlights of the report.

What did The Lottery Corporation report?

• Reported group revenue up 11.1% year over year (YoY) to $3.27 billion
• Reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) up 16.9% YoY to $610 million
• Reported net profit after tax (NPAT) before significant items up 14.8% YoY to $373 million
• Reported net profit after tax after significant items down 13% YoY to $347 million

The company notes that it did well in the face of COVID-19, with lottery products picking up the slack from its Keno division during lockdowns and other operational disruptions.

The Lottery Corporation stated that it completed its demerger from Tabcorp Holdings Ltd (ASX: TAH) in FY22. The demerger was first announced in May this year, with Tabcorp spinning off its lotteries and Keno businesses to create the new company.

As my Foolish colleague James Mickleboro reported at the time, the merger was done to maximise shareholder value and upside potential from future growth opportunities and give the businesses unique operating focuses.

Finally, the company said it expects to pay its first dividend in or around March next year.

What else happened in FY22?

The company reported strong results from its lotteries operating segment, with comparable revenues up 10.3% YoY to $3.25 billion and comparable EBITDA up 14.9% YoY to $600 million.

Results were underpinned by effective management of jackpot games and margin inflation through its transition to digital games, with digital turnover growing from 32.8% to 37.7% during the reported period for lotteries.

The Keno operating segment, however, underperformed with comparable revenue down 1.2% YoY to $252 million and comparable EBITDA down 4.1% YoY to $94 million.

Despite these weaknesses, the company states that its results were “largely in line” with FY21 while contending with venue closures caused by COVID-19.

What did management say?

The Lottery Corporation Managing Director & CEO Sue van der Merwe said:

In FY22 we sold over 660 million Lottery entries and delivered initiatives to enhance the customer experience. These included the Oz Lotto game change implemented in May that will deliver bigger prizes and more winners, and enhancements to our responsible play programs. The Lottery Corporation is in the business of making positive impacts. In FY22, The Lottery Corporation’s operations generated $1.7bn in lottery and Keno taxes for governments and more than $500m in commissions for newsagents, licensed venues and other retail partners.

What’s next?

Broadly, The Lottery Corporation expects to make further investments to maximise upside value from its existing gambling licences in FY23. It will also undertake additional operational measures as part of the demerger.

A specific focus of the business will be in its transition to digital as part of its omni-channel approach to offering lottery products, possibly encouraged by the strong growth it observed in this segment in FY22.

It’s also exploring the digital option for its Keno games as it intends to seek approval to incorporate digital into its recently acquired Victorian licence. This is anticipated to give users additional features on its applications and play digitally in its physical venues.

The Lottery Corporation share price snapshot

The Lottery Corporation share price is currently down 6.5% since it listed in May. In the same time period, the S&P/ASX 200 Index (ASX: XJO) is down around 1.66%.

The company’s market capitalisation is currently $9.78 billion taking into account today’s share price action.

The post Lottery Corporation share price drops despite $373 million profit appeared first on The Motley Fool Australia.

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More reading

• 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
• BrainChip share price up on 529% revenue surge
• Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years

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 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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I had something else planned to write today.

Truth be told, it’s already written, but I’ll send it another time.

(For once, I have that feeling I never had at school of actually being ahead on my homework!)

Instead, I talked the team into letting me do something different.

See, tomorrow at 3pm AEST, I’m going to be hosting a live YouTube chat.

(Spoiler alert: I’m going to be giving you the heads-up on how I’m thinking about this market, and two companies I’m going to be buying shares in – before I do it!)

Different, in the sense that it’s not an article like this.

And different in the sense that I’ve never done one of these on YouTube before and, well… either it’s going to be great, or it’s going to all fall in a heap and be car crash TV!

No, I’m not worried about the content.

It’s my ability to smoothly host a YouTube Live that I’m most worried about.

So, I’d like you to tune in for the content.

But if you’d prefer, just tune in to watch me walk the YouTube tightrope without a net!

(Maybe both?)

But I’m getting ahead of myself.

The reason I wanted to do this was two-fold:

First, the market has been all over the place.

I know, from the questions we get from all sources (members, readers, podcast listeners), that there’s a general sense of unease, but also that a lot of people have questions.

And I figure a live chat, including Q&A, is a great way to both get your questions and to share the answers with as many people as possible.

Second, come inside the tent for a minute. Investors are funny people. Yes, I’m including myself in that group.

But right now, funny in a particular way.

See, when share prices are riding high, everyone wants to be at the party.

And when they’re low, or falling, or there’s uncertainty… well, it can feel like we only have tumbleweeds for company.

Which is both understandable… and a shame.

Because I reckon the money is made in the buying and the holding.

And the best time to buy?

When shares are cheap, relative to the future prospects of the business.

You know when Afterpay-mania was at its peak?

When the share price was at all-time highs.

You probably know that was a while ago… and the ride has been painful, since.

It’s the same for the ‘hot stocks’ in any category.

But not just them.

Cochlear Limited (ASX: COH) fell from $80-odd to about $55 a few years back when it did a product recall, as investors abandoned ship.

Now?

They’re selling for $215 a piece.

Commonwealth Bank of Australia (ASX: CBA) fell from $90 to $57 during the COVID crash.

They’re now $97 each.

My point?

The time to buy – to get real value – is when others aren’t.

When the value of the business’ future profits is being ignored by investors.

Times like, well, perhaps now.

The ‘inside the tent’ bit?

We have far more people interested in our services when the market is running hot than when it’s not.

Which is… counterproductive.

Yes, for us, obviously.

But also for them.

If I’m right, and the future is bright for democratic capitalism (and for the ASX and many, perhaps most, of the companies listed on our bourse), then this is the time you want to be investing.

Not because I know it’s the bottom.

Not because shares can’t fall further.

But because if the future is brighter than the present, waiting would, on average, seem counterproductive, no?

Anyway… enough of that, for now, at least.

Bottom line: If you want to hear my thoughts on investing and the markets…

If you want to ask me a question (or just hear my answers to others’ questions)…

If you want to know the next two companies I’m going to buy shares in (yes, before I do it)…

Then I hope you’ll tune in to the video.

And if I convince you that now is a good time, then I’ll also have a link to a very good price to join one of the services I run, Motley Fool Share Advisor.

(But no pressure. No obligation. And I won’t be “selling”. I’ll just give you the link at the end if you want to get started. If not, or if you want to do it yourself, that’s cool, too!)

Some of you reading this are already members. Thank you. I hope you’ll join us. And if you’re not? I hope you’ll join us, too.

(Are you there tree people? I’m singing for you, too! Kids, ask your parents about that reference.)

So clear your diaries for 3pm AEST tomorrow.

And use this link to RSVP so we can send you the YouTube Live link (it’ll come through about an hour before we kick off).

See you there!

Fool on!

The post Tomorrow: What I’m thinking and what I’m about to buy… appeared first on The Motley Fool Australia.

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More reading

• Lottery Corporation share price drops despite $373 million profit
• WiseTech Global hikes full-year dividend by 71% as profits surge higher
• Here’s why this ASX lithium share is rocketing more than 100% today
• Sonic Healthcare share price charges higher on 10% FY22 dividend boost
• APA share price dips despite $1.4b growth pipeline

Motley Fool contributor Scott Phillips 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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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 WiseTech Global Ltd (ASX: WTC) share price is up 10.9% to $58.79 in Wednesday trading after the provider of software solutions to the logistics industry reported full-year revenue up 25% to $632 million and net profits after tax up 72% to $182 million.

The company declared a fully franked final dividend of 6.40 cents per share, taking total FY22 dividends to 11.15 cents per share, an increase of 71% compared to FY21.

The WiseTech final dividend will be paid to eligible shareholders on 7 October 2022. WiseTech shares go ex-dividend on 9 September 2022. 

Based on the WiseTech share price today, the stock trades at more than 103 times earnings and on a fully franked dividend yield of 0.15%.

Looking ahead, WiseTech said it anticipated FY23 revenue growth of 20–23% and earnings before interest, tax, depreciation, and amortisation (EBITDA) growth of 21–30%.

Over the past 12 months, WiseTech shares have gained 62%, compared to a fall of 7.6% in the S&P/ASX 200 Index (ASX: XJO). By contrast, fellow large-cap tech stock Xero Limited (ASX: XRO) shares have fallen 42% in the last year.

The post WiseTech Global hikes full-year dividend by 71% as profits surge higher appeared first on The Motley Fool Australia.

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More reading

• Lottery Corporation share price drops despite $373 million profit
• 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
• BrainChip share price up on 529% revenue surge
• Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years

Motley Fool contributor Bruce Jackson has positions in WiseTech Global and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. 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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This ASX lithium share is steaming ahead on the market today.

Arcadia Minerals Ltd (ASX: AM7) shares are trading at 45.5 cents, a 133.33% gain. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is lifting 1.3% today. Core Lithium Ltd (ASX: CXO) shares are lifting 2.85%, while Pilbara Minerals (ASX: PLS) shares are up 2.6%.

So why is this ASX lithium share doing so well today?

Massive resource boost

Arcadia Minerals is exploring mostly battery metals at a range of projects. The company is looking for lithium, tantalum, nickel, copper and gold.

Today, Arcadia advised of a 560% boost to the JORC mineral resource estimate (MRE) at a key lithium project.

Arcadia is exploring the Bitterwasser Lithium-in-Clay Project in Kalkrand, Namibia.

The updated inferred MRE defined over the Eden Pan location is:

• 85.2 million tonnes at 633 parts per million (ppm) for 286,909 tonne (t) Li2Co3 (lithium carbonate equivalent)

Cyclone test work shows the potential to produce concentrate of 59.6 million tonnes at 817 ppm for 259,231t of lithium carbonate at the project.

The company is now planning to conduct large-scale test work. Arcadia is aiming to find out the best recovery process to potentially produce “battery grade lithium carbonate product”. The company will work with the University of Stellenbosch on this process.

Commenting on the news, CEO Philip le Roux said:

We’re encouraged by the significant increase in metal content at the Bitterwasser Lithium-in-Clay project, which is now equivalent to a 1% Li2O hard rock resource of 11.6Mt.

Arcadia Minerals share price snapshot

The Arcadia Minerals share price has soared 140% in the past year. In the year to date, Arcadia shares have surged 116.7%.

In comparison, the ASX 200 Materials Index is nearly flat in the past year.

Arcadia has a market capitalisation of about $21.25 million based on the current share price.

The post Here’s why this ASX lithium share is rocketing more than 100% today appeared first on The Motley Fool Australia.

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More reading

• Lottery Corporation share price drops despite $373 million profit
• Tomorrow: What I’m thinking and what I’m about to buy…
• WiseTech Global hikes full-year dividend by 71% as profits surge higher
• Sonic Healthcare share price charges higher on 10% FY22 dividend boost
• APA share price dips despite $1.4b growth pipeline

Motley Fool contributor Monica O’Shea 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 Sonic Healthcare Limited (ASX: SHL) share price is up 4.52% in trade on Wednesday.

Sonic Healthcare shares closed yesterday trading for $33.19 and are currently trading for $34.69.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) global pathology provider’s full-year results for the 12 months ending 30 June (FY22).

Here are the highlights.

Sonic Healthcare share price gains on profit and dividend boost

• Revenue of $9.3 billion, up 7% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.8 billion, an increase of 11% year on year
• Net profit increased 11% from FY21 to $1.5 billion
• Full-year dividend of $1.00 per share, fully franked, up 10% from the prior year
• Available liquidity as at 30 June of $1.6 billion

What else happened during the year?

The 7% revenue growth that looks to be helping drive the Sonic Healthcare share price higher today was comprised of 3% growth in COVID testing, 2% in its base business, and 2% from acquisitions.

The company has ongoing COVID testing in all seven countries where it operates, with $2.4 billion of COVID revenue in FY22, up 13% from FY21. Since March 2020, Sonic reported it has performed more than 55 million COVID PCR tests.

The company invested $628 million in acquisitions over the year, including the acquisitions of Canberra Imaging Group and ProPath, and said it is pursuing further opportunities in FY23.

The final dividend of 60 cents per share, fully franked, was up 9% from the prior year.

With gearing at record low level, Sonic said it has no current exposure to interest rate increases; all remaining debt is fixed rate and long term.

The company’s on-market share buyback of up to $500 million is ongoing, with $294 million completed to date.

Sonic’s AI initiative, Franklin.ai, was said to be “progressing at pace”.

What did management say?

Commenting on the results that are pushing the Sonic Healthcare share price higher today, CEO Colin Goldschmidt said:

Sonic Healthcare and our people have continued to play a major role in combating the COVID-19 pandemic during the 2022 financial year… Concurrently, we have also provided non-COVID essential medical diagnostic services for more than 100 million patients a year…

Sonic’s revenue grew organically by 5% for the year, with base business organic growth of 2.1% augmented by significant growth in COVID-related revenues. The contributions of synergistic acquisitions took total growth for the year to 7%. Twelve months ago, we would never have expected our COVID-related revenues to grow by 13% in 2022.

What’s next?

Sonic Healthcare didn’t provide guidance for FY23 due to pandemic-related unpredictability.

The company does expect its base business growth to accelerate. And it doesn’t forecast major cost impacts from inflationary pressures, with wage increases expected to be moderate.

Commenting on the outlook, Goldschmidt said, “It remains difficult to predict future revenues from COVID-19 testing, however we do expect ongoing demand, coupled with seasonally weighted increased testing for other respiratory viruses.”

Sonic Healthcare share price snapshot

The Sonic Healthcare share price is down 26% in 2022. That compares to a year-to-date loss of 6% posted by the ASX 200.

The post Sonic Healthcare share price charges higher on 10% FY22 dividend boost appeared first on The Motley Fool Australia.

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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 recommended Sonic Healthcare 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 APA Group (ASX: APA) share price is rangebound from the open on Wednesday following the release of the company’s FY22 results.

At the time of writing, APA shares are 1.52% in the red at $11.37 apiece.

APA grows top line, profit down

Key takeouts from the period include:

• Revenue growth of 4.3% year on year, recognising $2.23 billion at the top line
• Full-year underlying EBITDA up 3.9% to $1.7 billion from $1.629 billion in FY21
• Free cash flow (FCF) growth of 19.8%, realising $1.01 billion in FCF for the year
• Reported net profit after tax (NPAT) of $240 million, down 13.9% year on year
• FY22 distribution of 53 cents per security, up 3.9% year on year

What else happened in FY22 for APA?

APA advanced a number of projects last financial year, investing over $500 million in growth projects across the period.

It invested $270 million to progress the stage 1 and 2 expansion of the East Coast Grid alongside the $460 million Northern Goldfields interconnect, Mica Creek Solar Farm.

The APA board also approved a 28 cents per security dividend. This brings the FY22 APA dividend to 53 cents, a 4% increase from FY21.

APA also reports it has advanced “significant investments” in the renewable energy transition, boasting “an organic growth pipeline in excess of $1.4 billion”.

Management commentary

Speaking on the announcement, APA CEO Rob Wheals said:

APA has delivered another solid result in a year that has highlighted the critical role that APA’s gas transmission assets play in delivering energy security to Australians when it is needed most.

Gas power generation and APA’s existing gas infrastructure has stepped up to help fill the electricity supply gap across Australia’s east coast, underscoring the critical role that gas and gas infrastructure will play as the energy transition accelerates, including as the perfect complement to firm renewable generation.

What’s next for APA?

The group forecasts a 3.8% increase in its dividend payment in FY23, projecting a total payment of 55 cents per share.

It also noted it has a number of new projects underway across gas transmission and renewable energy generation.

The company also clarified its view on emissions looking ahead:

Introduction of 2030 interim climate commitments to reduce emissions by 30% in gas transmission, reduce emissions intensity by 35% in power generation and implement an active program to reduce emissions [APA] can control in electricity transmission.

APA Group share price snapshot

In the last 12 months, the APA share price has gained roughly 16%, or 15% this year to date.

The post APA share price dips despite $1.4b growth pipeline appeared first on The Motley Fool Australia.

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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 positions in and has recommended APA 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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The Netwealth Group Ltd (ASX: NWL) share price is surging higher this morning on the back of a strong lift in operating cash flow for FY22.

Shares in the ASX-listed wealth management platform are currently trading for $14.22 each, an 8.55% jump on yesterday’s closing price

The company reported strong top-line growth but net profit after tax only increased slightly.

Let’s take a closer look at the Netwealth results for FY22.

What did Netwealth report?

Here is a high-level skim over the key results for FY22.

• Revenue grew 19.6% to $173.9 million, relative to FY21
• Operating expenses lifted 30.7% to $85.1 million
• Net profit after tax (NPAT) went up by 2.7% to $55.6 million
• Declared a final fully franked dividend of 10 cents per share, resulting in a total dividend of 20 cents per share for the year

Funds under administration increased by 18.1% to $55.6 million and net inflows rose by 32.4% to $13 million. Funders under management went up by 11.3% to $13 million but net inflows dropped by 20.4% to $2.6 million due to the downturn in equity markets.

Netwealth’s managed funds segment also bore the brunt of the fall in the equities market as the managed funds balance declined 0.1% and net inflows fell 6.8%.

Fund inflows generate more revenue for Netwealth because it means more transactions are processed on its platform, resulting in greater administration revenue. This is why it’s an important metric to track.

Despite these headwinds, Netwealth still reeled in an additional 18,823 client accounts to 115,642, representing an uptick of 18.8%.

The big surge in operating expenses is down to a significant lift in employee headcount of 63 roles for the year. Most of these were technology recruits — they accounted for 50%.

This was the major reason why net profit after tax didn’t move that much.

However, operating cash flow improved from $37.8 million to $59.6 million. Netwealth’s cash balance increased by $6.9 million to $88.3 million.

The final fully franked dividend of 10 cents per share totals $24.4 million and is payable on 29 September. The ex-dividend date is 30 August.

What else happened in FY22?

Netwealth was awarded as the “Best Overall Platform” in the Investment Trends December 2021 Competitive Analysis and Benchmarking Report. Netwealth was also rated number one in the reporting and transaction tools categories.

More recently, Netwealth was rated first in the Investment Trends May 2022 Adviser Technology Needs Report for “Overall Satisfaction”. This is the 10th consecutive year Netwealth has been crowned with this accolade.

On the competition front, Netwealth continues to be the fastest growing wealth platform provider based on net funds flows. In terms of market share, Netwealth is currently sixth behind the likes of Westpac Banking Corporation (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), AMP Ltd (ASX: AMP), and Macquarie Group Ltd (ASX: MQG).

Netwealth leader succession

Founder and joint managing director Michael Heine advised he will be stepping away from day-to-day management from 1 October. His son and joint managing director Matt Heine will be appointed as sole managing director.

Michael Heine will continue as an executive director on the board.

What’s ahead for the Netwealth share price?

Netwealth disclosed that $2.5 million of capital will be allocated to the expansion of the data analytics and business management platform, Xeppo. Netwealth currently holds 25% ownership in Xeppo with the option to buy 100% over the next four years.

Management notes this investment will enable financial advisers, licensees, and model managers to improve their interaction with clients.

Netwealth is guiding funds under administration net inflows in the range of $11 billion to $13 billion in FY23.

Netwealth share price snapshot

Year to date, the Netwealth share price has fallen around 20% along with the rest of the ASX growth stocks but has rebounded by 9% in the past month.

At the same time, the S&P/ASX 200 Index (ASX: XJO) is down 7% year to date but has clawed its way back in the last month to post a gain of 3%.

The market capitalisation for Netwealth is currently around $3.44 billion.

The price-to-earnings (P/E) multiple for Netwealth is around 61.72 times, so there is a lot of optimism in the current Netwealth share price.

The post Netwealth share price rises 9% on strong revenue growth in FY22 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Raymond Jang owns shares of Netwealth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth. The Motley Fool Australia has positions in and has recommended Netwealth. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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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