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Shares in Polynovo Ltd (ASX: PNV) are on falling today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Polynovo share price is tanking 4% in the red at $1.01 after releasing its earnings today.

Polynovo share price spikes amid earnings growth

Key takeouts from the company’s earnings results today include:

• Reported revenue of $18.15 million signifying a gain of 41.9% on the same period last year
• US Q2 sales was a record A$8.06 million signifying a gain of 105% Year on Year (YoY)
• US NovoSorb BTM sales for December also came in at a record A$3.4 million and were up 76% YoY
• 1H FY22 sales for the US were A$14.20 million and represented a 58% YoY growth
• Group NovoSorb BTM sales came in to $16.27 million and grew 44.6% over the prior period
• Group underlying profit after income tax was $1.618 million, up from a loss of $3.57 million in December 2020
• Reported net loss after tax of $1.7 million when excluding non-cash items

What else happened this half for Polynovo?

Polynovo had a mixed set of results but strengths were predominantly seen in its US markets during this half. US revenue was up 58% for the period leading to all-time highs for sales in November 2021 and then again in December.

Total product sales were up 45% year on year whereas spending on research and development grew by 86%. As a result of its performance, the company recognised NPAT of $1.6 million.

However, when excluding non-cash items on the company’s income statement, Polynovo actually reported net underlying loss after tax of $1.7 million.

The company is also playing an active role over its supply chain management in order to “counteract any demand planning and supply chain issues”.

“We updated our cash flow forecasts to include the impact of changes in costs” it said, with respect to the supply chain issues currently plaguing global industry.

Positive sales momentum from the US has spilled over into the new year, such that the group has recorded another set of record results in January 2022. Sales of A$3.7 million have jumped 96% on the same time last year and are leading this growth.

It also added another 35 new accounts in 1H22, bringing the total number of accounts to 154 at the time of its half-year report today. Of this amount, 16 were added in Q1 FY22 and another 19 in Q2.

In its UK markets, first half sales of $369,000 were up 255% on the same time last year “but less than target”, the company says.

Management commentary

In his director’s report, Polynovo Chairman, David Williams remarked:

COVID-19 has led to new ways of working to allow remote working, virtual sales contacts, virtual conferencing, and protocols to ensure our profile in the market and demand generation continues to grow. All markets have been impacted to varying degrees by the lack of access to hospitals and medical professionals, and the reduction in procedures taking place with the biggest impact in UK and Ireland (UKI) and Europe, Middle East, and Africa (EMEA). Notwithstanding, the Group achieved 45% BTM sales growth globally and notably US revenue was up by 58% in the period to 31 December 2021 when compared to the comparative period. The Group continues to recruit sales and marketing staff to drive sales. The Company sees significant revenue upside in expanding its salesforce.

What’s next for Polynovo?

The company outlined its “focus points for 2H22 and FY23” in the release today. It wants to increase sales teams to drive sales efforts, optimise both its distributor model and emerging markets model whilst expanding its footprint into other markets.

Not only that, but Polynovo is aiming to “expand Key Opinion Leader program (especially UK & EU)” and “focus on product development and faster commercialisation” in the coming periods.

Since 31 December 2021, the group recorded BTM sales of A$4.05 million in January 2022, exceeding the $4 million barrier in monthly sales for the first time in its history.

It’s also added 10 more customers in the US, bringing the total to 164 and anticipated a strong recovery in ANZ markets.

Polynovo share price snapshot

In the last 12 months, the Polynovo share price has collapsed over 58% and is down 31% this year to date. During the past month of trading, shares have collapsed another 22% and are trailing the major indexes in 2022.

The post Polynovo (ASX:PNV) share price stung 4% as H1FY22 net loss wreaks havoc 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. owns and has recommended POLYNOVO 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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has opened higher this morning after yesterday’s carnage on the markets. At the time of writing, the ASX 200 has gained 0.15%. But unfortunately, that goodwill is not extending to the Magellan Financial Group Ltd (ASX: MFG) share price.

Magellan shares are currently down a nasty 6.17% at $18.56 each. That comes straight after yesterday’s fall of more than 4.8%, putting its five-day losses at around 14%.

So what might be dragging on Magellan shares today?

Well, it just happens that the fund manager has today released its latest funds under management (FUM) update.

As you might have anticipated, it wasn’t exactly good news. Magellan reported its total FUM now stands at $77.2 billion. That’s a reduction of 11.37% since its last update on 11 February when the company announced FUM of $87.1 billion.

Magellan shares sink as FUM outflows continue

Some $3.2 billion of those losses were due to fund outflows, with the rest presumably the results of movements in share and asset market prices. Of that $3.2 billion, $2.6 billion was the result of outflows from institutional investors, with the remaining $0.6 billion coming from retail investors.

Turning to Magellan’s remaining $77.2 billion in FUM, $47.1 billion is housed in Magellan’s Global Equities division. The company’s Infrastructure Equities division is looking after $20.5 billion and Australian Equities has $9.6 billion in FUM.

This news comes just a week after the half-year earnings report that Magellan released to investors on 18 February. This was very well received at the time, with the company reporting a 24% rise in net profits after tax (NPAT), along with a 13% increase in its interim dividend. Even after the falls of the past week, Magellan shares remain up slightly from where they were before the earnings report was released.

Even so, the Magellan share price has had a rough trot over recent months and years. The company remains down around 12% year to date, and down a nasty 59% over the past year.

At the current Magellan share price, this ASX 200 fund manager has a market capitalisation of $3.52 billion, with a dividend yield of 10.9%.

The post Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is off its intraday highs but on course to record a small gain. The benchmark index is currently up 0.2% to 7,002.8 points.

Here’s what is happening on the ASX 200 on Friday:

Block shares rocket

The Block Inc CDI (ASX: SQ2) share price is rocketing higher today following the release of the payment giant’s fourth quarter and full year results. For the 12 months, Block recorded a gross profit of US$4.42 billion. This was up 62% year on year. Things were even better for its adjusted earning before interest, taxes, depreciation and amortisation (EBITDA), which increased 114% year-on-year to US$1.01 billion.

Medibank half year results

The Medibank Private Ltd (ASX: MPL) share price is falling today after the private health insurer’s half year results underwhelmed the market. Medibank reported a net profit after tax of $220.2 million, which is down from $226.4 million a year earlier. The company also revealed that it continues to assess claims activity and any permanent net claims savings due to COVID-19 will be given back to customers.

Tech shares rebound

A number of ASX 200 tech shares are rebounding strongly on Friday. This includes the likes of artificial intelligence data services company Appen Ltd (ASX: APX) and location sharing app company Life360 Inc (ASX: 360). Both these shares were sold off on Thursday following the release of their respective full year results.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Block share price with a 35% gain. This follows the release of its aforementioned results. Going the other way, the worst performer has been the Blackmores Limited (ASX: BKL) share price with a 13% decline. This morning Credit Suisse downgraded the health supplements company’s shares.

The post ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd and Block, Inc. The Motley Fool Australia has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Strike Energy Ltd (ASX: STX) share price is in negative territory today. This follows the energy company’s update on the South Erregulla drilling operations at the EP503 site.

Strike Energy holds a 100% interest in EP503. The gas project is located about 230 kilometres north-east of Perth in the North Perth Basin in Western Australia.

At the time of writing, Strike Energy shares are bidding for 26 cents apiece, down 1.89%.

What did Strike Energy announce?

Investors are selling off Strike Energy shares after digesting the company’s latest release.

In its statement, Strike Energy advised it has successfully drilled through the lower Carynginia Formation and the Irwin River Coal Measures.

Mud has previously been observed at the South Erregulla-1 (SE1).

So far, a measured depth (MD) of approximately 4,859 meters has been drilled.

Management believes the target to be a short distance away from the top part of the sub-section of the primary target in the Kingia Sandstone.

Currently, Strike Energy is pulling out the bottom hole assembly to reconfigure and acquire core in this section.

Once completed, the team will proceed to core a 45 meter interval. However, the company noted that this could take several attempts to achieve.

Once completed, the company will return with the drilling assembly to drill through the Bit Basher Shale, the High Cliff Sandstones. A final depth call will then follow in the Holmwood Shale area.

Strike Energy noted that South Erregulla has significant resource potential in the Kingia Sandstones with a high chance of success. This is due to the strong data control over the Erregulla region, consistent geological outcomes, and recent identification of updip connectivity in the West Erregulla gas field.

Strike Energy share price review

Over the past 12 months, Strike Energy shares have lost close to 18%, but are up over 25% year to date. The company’s shares reached a 52-week low of 14.5 cents in early December, before rebounding higher.

Based on valuation grounds, Strike Energy commands a market capitalisation of roughly $526.53 million, with 2.03 billion shares on issue.

The post Here’s why the Strike Energy (ASX:STX) share price is edging lower today appeared first on The Motley Fool Australia.

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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 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 Bruce Jackson.

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The Paladin Energy Ltd (ASX: PDN) share price is surging today after the uranium miner released its financial results for the half-year ending 31 December 2021.

The uranium miner reported a cash increase and a net loss decrease from its operations.

At the time of writing, the Paladin share price is up 13.87% at 78 cents. For comparison, the broader S&P/ASX 200 Index (ASX: XJO) is up 0.3%.

So what did Paladin reveal? Let’s take a look…

Paladin share price surges on results

Highlights of the uranium miner’s H1 FY22 results included:

• Unrestricted cash and equivalents of US$38 million, up 24% from $30.6 million in the prior corresponding period (pcp)
• Net loss of US$11 million, against US$25.4 million in the pcp
• Cash expenditure of US$5.6 million, up 21% on the pcp of US$4.6 million
• No dividend declared

Over the period, the company’s net loss (after tax) from its continuing operations decreased by 57% — a drop the miner attributed to “a result of reduced finance costs” and “foreign exchange gains”.

It also had a cash expenditure of US$5.6 million, while remaining on track for its full-year expenditure target of $12.2 million.

Between 30 June and 31 December 2021, the Paladin share price increased by 69%.

Langer Heinrich mine update

Looking more closely at its operations, Paladin remains committed to its mining portfolio in Australia and Canada.

It spent US$144,000 from its operating cash flow on new “property, plant and equipment” during the period, along with US$662,000 on meeting “minimum tenement requirements” at its sites.

Additionally, it continued to work towards its goal of restarting the Langer Heinrich mine in Namibia, Africa. During H1 FY22, Paladin released its ‘Langer Heinrich Mine Restart Plan Update’. This confirmed an estimated cost of US$81 million to restart the mine and a “17-year mine life supported by ore reserves of 84.8Mt with an average U3O8 grade of 448ppm”.

During the period, the company spent $1.57 million on “ongoing care and maintenance” of the site (from operating cash flow). It also spent US$932,000 on restart planning. However, no official restart date for the mine has been set.

Paladin said:

The restart work technical programs are now complete and have reinforced Paladin’s confidence in the Langer Heinrich Mine as a robust, competitive long-life operation ready to rapidly restart production in the right uranium price movement.

What did management say?

Commenting on the results fuelling the Paladin share price today, CEO Ian Purdy said:

Our Langer Heinrich Mine remains competitively positioned to take advantage of an improving uranium market. The asset has a proven track record of production having successfully marketed over 43Mlb of U3O8.

Our strong cash position and low expenditure levels coupled with our detailed restart plans and our team of high calibre industry experts will ensure that, when the right uranium pricing market prevails, the Langer Heinrich Mine can be successfully restarted, delivering significant value to all of our stakeholders.

Paladin share price snapshot

Over the last 12 months, the Paladin share price has increased by 96%. For comparison, the broader S&P/ASX 200 Energy Index (ASX: XEJ) has increased by 3.2%. However, Paladin shares are down 12.5% this year to date.

In April last year, Paladin shares were trading as low as 36 cents. In September, shares climbed to a high of $1.12.

Earlier this week, the Paladin share price climbed by 9% despite no official news from the company.

The company has a market capitalisation of $1.83 billion.

The post Paladin (ASX:PDN) share price soars 14% on ‘strong cash position’ appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
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• Why has the Paladin Energy (ASX:PDN) share price tumbled 15% in a month?
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Motley Fool contributor Alice de Bruin 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 Bruce Jackson.

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Shares in Bravura Solutions Ltd (ASX: BVS) are plunging today after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, the Bravura share price is trading deep in the red at $1.56 apiece, down 17.7%, after releasing its earnings.

Bravura share price slumps amid earnings growth

Key takeouts from the wealth management company’s earnings results today include:

• Revenue was up 14% to A$132.3 million, a gain from A$115.7 million in 1H21)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) was 61% higher to A$25.3 million
• net profit after tax (NPAT)also up 69% to A$15.3 million
• EBITDA margin increased to 19% compared to 14% the same time last year
• First half earnings per share (EPS) up 68% to 6.2 cents per share
• Unfranked interim dividend declared of 3.7 cents per share
• Dividend payout ratio totalling 60% of 1H22 NPAT.

What else happened this half for Bravura?

In its release today, Bravura said it had seen developments in key markets, particularly the Superannuation Fund Consolidation. The company highlighted a “vertical integration leading to value chain disruption”, and a greater need to improve the digital experiences of customers.

From its efforts this half, Bravura grew revenue by 14% to $132 million with EBITDA and NPAT expanding substantially by 61% and 69% respectively.

Meanwhile, revenue from wealth management was also happy and grew 10%. As a result, the group’s EBITDA margin decreased by 100 basis points to 24% this half.

In the same breath, funds administration division revenue grew by 23%, and EBITDA margin widened by 9 percentage points to 51%.

“Included in the funds administration revenue was the licence associated with a major contract renewal,” Bravura said.

With the growth at the top, Bravura carried this through to EPS of 6.2 cents – up almost 70% year on year – and declared a 3.7 cents per share on a payout ratio of 60% of NPAT.

Bravura also noted in its release today that it “continues to evaluate a pipeline of additional acquisitive and organic growth opportunities”.

Management commentary

Speaking on the group’s performance, Bravura CEO Nick Parsons said:

Bravura’s 1H22 results are encouraging and the return to both revenue and EBITDA growth is very welcome. We are beginning to see the positive effects of our strategic investments.

We continue to sell and deploy our new solutions, which together with increasing economic activity as our core markets emerge from COVID-19, makes us optimistic for future growth.

What’s next for Bravura?

The company expects revenue growth to continue throughout 2H22, resulting in “full-year revenue growth in excess of 10% against FY21”.

It also noted that “some opportunities are shifting to FY23”, and that operating costs are increasing at a similar rate to revenue.

As such, management guides that FY22 EBITDA will be in the range of $45 million to $50 million and the revised guidance for FY22 NPAT “to be in the range of $25 million to $30 million, below previous guidance provided at the November 2021 AGM”.

Bravura share price snapshot

In the past 12 months, the Bravura share price has plummeted more than 46% and is down almost 36% this year to date.

The post Battered: Bravura (ASX:BVS) share price slides 17% on reduced guidance 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. owns and has recommended Bravura Solutions Ltd. The Motley Fool Australia owns and has recommended Bravura Solutions Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It was a devastating day for the S&P/ASX 200 Index (ASX: XJO) yesterday, posting its worst fall in roughly 17 months. Much of this was attributed to Russia’s invasion of Ukraine. However, the news of construction giant Probuild going into administration had its own impact on the ASX.

A perfect storm created by COVID-19 and associated supply chain issues resulted in the company haemorrhaging money. Costs reportedly blew out to nearly $120 million at a luxury apartment construction site in Brisbane at 443 Queen Street.

The scenario begs the question: Will Probuild’s collapse have any ramifications for ASX shares?

How might Probuild’s downfall impact ASX shares?

At the moment, it is early in the piece for Probuild. The company entered voluntary administration yesterday. The restructuring team at Deloitte has taken charge in attempting to turn around the disrupted builder.

As the auditor picks apart the business, more details will likely come forward. However, we already know about a few ASX shares exposed to Probuild.

Downer EDI Limited (ASX: DOW) is currently the clearest example of an ASX share at risk. The integrated services company announced yesterday that it had carried out mechanical and electrical services for the Victoria Police building in Melbourne.

While Downer has completed the works, around $30 million in defect liability claims still sit with Probuild. As such, there is the possibility that those funds will not be recoverable. Shares in Downer sold off 3.3% yesterday on the news.

The unfolding situation may also impact CSL Limited (ASX: CSL). Unfortunately, the biotechnology giant could face delays in the completion of its new headquarters and research and development facility.

CSL has engaged Probuild to fit out the office spaces and labs of the $1 billion project in Parkville, Melbourne. Previously, CSL had indicated the facility was on track for completion in early 2023.

Could there be more consolidation to come?

Ironically, the news of Probuild going into administration was shortly followed by Cimic Group Ltd (ASX: CIM) revealing it had received a takeover offer from majority shareholder, Hochtief Australia.

The much larger construction group has had its own challenges in recent years. For example, Cimic wrote off $1.8 billion in 2020 after failing to recover debts in the Middle East.

Nicola Grayson, the CEO of the engineering industry lobby group, Consult Australia, says she fundamentally believes the system is broken. Cut-throat competition and poor risk distribution in the commercial building industry are making it increasingly difficult for construction companies to make money.

The post Which ASX shares might be impacted by Probuild’s collapse? appeared first on The Motley Fool Australia.

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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. owns and has recommended CSL Ltd. 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 Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price has been paused on Friday morning following the release of the ecommerce company’s half year results.

After briefly rising 1% to $5.67, the Kogan share price has been paused pending the release of another announcement.

What this impending announcement relates to is unclear. Some shareholders may be hoping it’s a takeover offer, though it could simply be an ASX Query relating to its results.

Speaking of which, Kogan had a tough first half. Here’s what happened:

Kogan share price on watch after swinging to loss

• Gross sales up 9.4% over the prior corresponding period to $698 million
• Revenue up 1.3% to $419.5 million
• com revenue down 17%
• Adjusted EBITDA down 66% to $17.4 million
• Adjusted net profit after tax down 87% to $4.8 million
• Reported loss after tax of $11.9 million
• Active customers up 9.4% year on year or 2.5% since August to 4,071,000
• Total inventories reduced from $225.3 million to $196.8 million

What happened during the first half?

For the six months ended 31 December, Kogan reported a 9.4% increase in gross sales to $698 million but only a 1.3% lift in revenue to $419.5 million.

The latter reflects a full six-month contribution for the Mighty Ape business (acquired in December 2020) which offset a 17.3% decline in Kogan.com revenue to $325.7 million. Kogan.com’s revenue decline was driven by an 11.2% decline in Exclusive Brands revenue and a 33.5% drop in Third-Party Brands revenue.

And while Kogan’s active customers rose 9.4% to 4,071,000, its revenue per user metric is falling. This is despite its focus on growing the Kogan First loyalty program. That program grew 176% year on year to over 274,000 subscribers.

Growing Kogan First has also weighed heavily on its margins. Combined with high variable costs, the company’s adjusted EBITDA was down 66% to $17.4 million and adjusted net profit after tax dropped 87% to $4.8 million. On a statutory basis, Kogan recorded a loss after tax of $11.9 million.

Unsurprisingly, Kogan has not declared an interim dividend.

Management commentary

Kogan’s under fire Founder and CEO, Ruslan Kogan, remains upbeat despite the company’s disappointing half.

He said: “Over the last six months we have invested heavily on expanding product choice, value and speed of delivery for our over four million Aussie and Kiwi shoppers to delight them each and every step of the way. I am extremely proud of our team’s achievements, and even through the COVID situation — which has continued to bring operational disruption to all industries around the country and the world — our team has continued to focus on innovative ways to further enhance the Kogan.com and Mighty Ape customer experience.”

“We have been delighting our loyal customers for over 15 years and we look forward to continuing our obsession in delighting our customers by making the most in demand products and services more affordable and accessible. This is a team that thinks very long term. What you’re seeing right now is the building blocks for an even bigger and greater business, as we invest in building the best place for Aussie and Kiwi customers to get what they need. There’s a reason more than 4 million customers are shopping at the Kogan Group, and we’re working hard to help millions more,” he added.

Outlook

No guidance has been given for the full year, but management has provided an update on its performance during January.

It revealed that in January its gross sales grew 11.9% over the prior corresponding period. No details were given on what this means for revenue or earnings.

Kogan intends to provide regular business updates during the year.

The post Kogan (ASX:KGN) share price in limbo amid $11.9m first half loss appeared first on The Motley Fool Australia.

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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. owns and has recommended Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The GQG Partners Inc (ASX: GQG) share price is having a positive finish to the week.

In morning trade, the fund manager’s shares are up 5% to $1.47 following the release of its full year results.

GQG share price up amid strong FY 2021 growth

• Average funds under management (FUM) up 77% to US$80.5 billion
• Closing FUM of US$91.2 billion
• Net revenue up 74.9% to US$397.9 million
• Net income after tax up 81.6% to US$304.9 million
• Dividends per share of 1.54 US cents

Management commentary

GQG’s CEO, Tim Carver, was pleased with the company’s performance during the first half. He put its strong growth down to the positive results of its investment strategies.

Mr Carver commented: “We are pleased to announce our financial results for the 2021 financial year. During the year GQG saw 36.1% growth in funds under management to US$91.2 billion. This represents net FUM flow of US$17.1 billion for 2021, bolstered by strong absolute performance across our strategies. This, combined with FUM growth in prior periods, led to Net Revenue growth of 74.9% to US$397.9 million. Net income after tax increased 81.6% to US$304.9 million from US$167.9 million in 2020, reflecting the increase in average funds under management and cost efficiencies.”

“Our financial result is driven in large part by our investment performance over the long term. As at the end of the year our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success.”

Outlook

While no guidance has been given for FY 2022, management appears optimistic on the future.

It notes that it continues to see strong business momentum in a variety of geographies and channels and highlights that its fees are very attractive relative to its competition.

Positively, management also revealed that although markets have experienced significant volatility since the beginning of 2022, its funds under management have remained broadly stable with FUM of US$93.8 billion as at 18 February 2022.

The post GQG (ASX:GQG) share price up 5% amid strong FY21 profit growth appeared first on The Motley Fool Australia.

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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 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 Bruce Jackson.

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The Charter Hall Group (ASX: CHC) share price took off this morning after the company released its earnings for the first half of financial year 2022.

At the time of writing, the Charter Hall share price is $16.35, 2.32% higher than its previous close.

However, that’s a far cry from the stock’s intra-day high of $17.10 – representing a 7% gain.

Charter Hall share price surges as profits almost triple

• Revenue of $566.1 million – a 127% increase on that of the first half of financial year 2021
• Statutory profit after tax of $517.8 million – 198% more than the prior period’s $173.2 million profit
• Operating earnings of $263.9 million – a 104% increase
• Operating earnings per share (EPS) of 56.6 cents
• As previously announced, the company will pay an interim dividend and distribution totalling 19.66 cents per share on 28 February

As of the end of the first half, Charter Hall boasted $79.5 billion of funds under management, with $61.3 billion of property funds under management.

That represents $27.2 billion – or 52% – funds under management growth for the period.

Additionally, the company’s property investments grew by 18% ­– or $432 million – to $2.85 billion, delivering a 25.5% return.

Its portfolio occupancy ended the period at 97.4% and its weighted average lease expiry was 8.6 years.

Meanwhile, the Charter Hall Property Trust Group brought in $18.4 million of revenue – up from $3.3 million – and a statutory profit after tax of $307.5 million – up from 104.7 million.

During the half, Charter Hall underwent $6.8 billion of transaction activity, made up of more than 60 transactions with 18 active funds and partnerships. It also completed more than $11 billion of sale and leaseback transitions.

What else happened in the half?

Charter Hall’s development pipeline grew 50% to $13.2 billion over the last 6 months. Over the last 12 months, its development completions totalled $1.2 billion.

It completed $1.3 billion of sustainable finance transitions last half and is on track to power all operations with 100% renewable energy by 2025.

It also created a new partnership with Paradice Investment Management, investing in 50% of the entity’s shares.

The company’s managing director and CEO, David Harrison noted the partnership boasts good growth opportunities.

What did management say?

Harrison commented on the company’s earnings for the half, saying:

The current period has seen us experience strong inflows across our strategies, with $2.8 billion of gross equity allotted. We’ve also successfully deployed $5.4 billion in acquisitions across 18 funds and partnerships, a record 6-month period.

Importantly, our development pipeline continues to grow and now stands at $13.2 billion, providing valuable opportunities to deploy our investment capacity into new product.

With investment capacity of $6.7 billion across the platform, continued strong demand from capital partners to deploy equity, a growing development pipeline and significant retained earnings, we continue to see a strong pathway of growth for the group.

What’s next?

Charter Hall updated its financial year 2022 guidance today.

Previously, it aimed to provide post-tax operating EPS growth of at least 105 cents.

Today, it changed that outlook to post-tax EPS of no less than 112 cents.

Its distribution per share guidance of 6% growth has remained the same.

Charter Hall share price snapshot

2022 has proven rough on the Charter Hall share price.

It is currently 21% lower than it was at the start of this year. Though, it’s still 34% higher than it was this time last year.

The post ‘Record 6-month period’: Charter Hall (ASX:CHC) share price launches 7% on half-year results appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares offer 12% upside after sell-off: JP Morgan
• Irongate (ASX:IAP) share price rallies 17% on Charter Hall takeover proposal

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 Bruce Jackson.

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