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The DroneShield Ltd (ASX: DRO) share price is zipping upwards today after the company released its financial results for the full year ended 31 December 2021.

In afternoon trade, shares in the drone detection technology company are fetching 18 cents per share. This represents an increase of 9.37% from the company’s previous closing price.

DroneShield share price takes flight on rapid revenue growth

• Revenue up 91% to $10.6 million compared to the prior year
• Cash receipts reach $14.8 million, increasing 174% from FY20
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) improves marginally to a $5.9 million loss from a $6 million loss
• Net loss improves 9% to $5.31 million
• Total pipeline for 2022 reaches $290 million
• Repeat customer cash receipts of $9.9 million, increasing 350% from previous year

What happened during the year for DroneShield?

The DroneShield share price is soaring on the back of a momentous year of operations for the drone defence company in 2021. The year saw DroneShield cement yet another consecutive year of revenue growth, as contracts flowed in from new and repeat customers.

Powering forward with its software-as-a-service ambitions, the company broadened its market into AI-powered realms of electronic warfare. This saw DroneShield land a $3.8 million 2-year R&D contract with the Department of Defence. Investors were pleased with this announcement, sending the DroneShield share price higher on the news.

Furthermore, the company expanded upon its talent throughout the year, doubling the size of its team to 60 people. According to the annual report, the new additions included engineers, sales and field support, and production technicians.

DroneShield has continued to build its presence in the United States over the past year. For example, 2021 involved numerous invite-only events in the US where the company’s products were tested and evaluated.

Management commentary

Highlighting the importance of DroneShield’s US operations, independent non-executive chair Peter James stated:

The US Government and military market is expected to be the single largest opportunity for DroneShield, being the largest counterdrone customer in the world. During 2021, DroneShield continued to position itself for that market, with additional hires in its Virginia office, making multiple initial smaller sales, ensuring compatibility to standard US Government software interfaces, and conducting multi-agency product evaluations and deployments.

The US business is led by a seasoned ex-military veteran team, experienced in scaling US Government sales and the associated steps towards larger purchases.

Additionally, James provided insight into the company’s forward movements. He said:

DroneShield has continued to grow its relationships with key defence primes in Australia and globally. This is expected to bring further cash receipts (in the form of outright sales and paid R&D contracts) in 2022.

DroneShield share price snapshot

DroneShield shareholders have been on a wild ride over the past year. For instance, the DroneShield share price has been as low as 14 cents and as high as 22 cents.

Despite the volatility, investors have little to show for the voyage so far, with shares up 2.9% in the 12-month timeframe. However, many ASX-listed companies have fared far worse than DroneShield during this time.

For context, Electro Optic Systems Holdings Ltd (ASX: EOS) is down 62% in the last year. Additionally, Austal Limited (ASX: ASB) has tumbled more than 20%.

The post DroneShield (ASX:DRO) share price surges as revenues soar 91% appeared first on The Motley Fool Australia.

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• Negative result: Atomo Diagnostics (ASX: AT1) shares plunge 18% on half-year earnings
• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• Have Bitcoin price falls cemented gold as the best safe-haven asset?

Motley Fool contributor Mitchell Lawler owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Austal Limited, DroneShield Ltd, and Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended DroneShield 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 Atomo Diagnostics Ltd (ASX: AT1) share price is falling today after the company reported its half-year results.

The company’s shares are currently swapping hands at 14.7 cents each, a loss of 18.33% on the day so far.

Let’s take a look at what the diagnostic testing company reported to the market after close yesterday.

Atomo share price slips amid half-year results

Highlights of the company’s half-year (H1 FY22) results include:

• Gross profit fell 30% to $1.76 million, down from $2.52 million in the previous corresponding period (PCP)
• Gross margin of 33%, down from 55% in the PCP
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of -$1.48 million
• Revenue up 17% on PCP (H1FY21) to $5.34 million
• Cash balance of $13.68 million at 31 December 2021

What else happened in the half?

The company said its overall gross revenue from customers grew 53% to $7 million versus the PCP. This was driven by the huge demand for COVID-19 tests. There was also growth in sales of HIV self-tests.

Atomo sold 420,000 rapid COVID tests in the first half of the 2022 financial year although the company said its January sales have outstripped total sales for the entire first half. Since then, however, market demand has fallen as “Omicron infection rates drop and free government tests impact the market”.

Nonetheless, the company has more than 120 enterprise and government customers and is still seeing demand for its products.

Management commentary

In its investor presentation, Atomo said Therapeutic Goods Administration (TGA) has “significantly relaxed” conditions of supply related to home-use, self-test products in Australia.

Given greater acceptance of home testing in the community Atomo sees an opportunity to commercialise a range of rapid tests in the local market and has first mover advantage in HIV as well as established consumer product support established in country.

What’s next

In the near term, Atomo sees “immediate” revenue growth potential for COVID rapid testing. In the medium term, it foresees consumers globally accepting rapid testing in the home and the increased importance of home-based healthcare solutions.

Long term, it predicts fewer regulatory barriers to home testing, particularly in the United States. It expects well-capitalised market entrants building home-delivered healthcare will emerge. And there will be more demand for convenient healthcare services.

The company said the diagnostic market has “permanently changed”.

Atomo believes it can continue to meet demand for COVID tests in the Australian and New Zealand markets. HIV testing is also an opportunity and Atomo plans to target commercial agreements in the USA and China. The company also believes it has “first mover” advantage on Australia’s HIV self-test market.

The company’s cash balance has increased by more than $2 million since 31 December to $15.8 million at 31 January 2022.

Atomo Diagnostics share price summary

The Atomo Diagnostics share price has sunk 46% in the past year and is down 50% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

Atomo has a market capitalisation of roughly $61 million based on today’s share price.

The post Negative result: Atomo Diagnostics (ASX: AT1) shares plunge 18% on half-year earnings appeared first on The Motley Fool Australia.

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• Here’s why the Atomo (ASX:AT1) share price is rocketing 17% today

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 AGL Energy Ltd (ASX: AGL) share price has jumped higher after a takeover bid that was rejected. Mike Cannon-Brookes isn’t going to give up on acquiring AGL yet.

For readers that didn’t see the news, these are some of the details of the recent bid:

Rejected bid

Mr Cannon-Brookes and Brookfield Asset Management lobbed a bid of $7.50 per share for AGL. This represented a 4.7% premium to the prior closing AGL share price of $7.16 on 18 February 2022.

The AGL Energy board thought that the proposal “materially undervalued” the company on a ‘change of control’ basis and wouldn’t be in the best interests of AGL shareholders.

The board believes that the proposed demerger of AGL Energy to establish two separately listed businesses – AGL Energy and Accel Energy – will deliver better value for shareholders. Both of those businesses plan to pursue action on decarbonisation. The demerger is planned to be completed by 30 June 2022.

Mr Cannon-Brookes will be responsible for 20% of the deal if it goes ahead, whilst Brookfield will go for the other 80%.

Mike Cannon-Brookes to power ahead with AGL pursuit

The AGL share price is still above the takeover bid level, which may suggest that the market is expecting a higher bid to come in.

Mr Cannon-Brookes himself has indicated that the interest is still there according to reporting by The Australian.

The newspaper reported that the consortium is “undaunted” by the opening bid’s rejection. For them, the next step is meeting with some AGL shareholders, talking with the AGL Energy board and perhaps lining up more funding partners that will help get the deal done.

Brookfield’s Asia Pacific chief executive Stewart Upson was quoted by The Australian:

Capital is required not just to invest in the clean, green stuff that everyone likes, but to invest in the businesses that need to transition from being heavier emissions and to get to lower emissions.

It’s designed to invest in a business like AGL, and then responsibly over a period of time – not immediately and say 10 years – responsibly oversee the accelerated transition of the business.

We have a chance to go back and engage with the company again. And look, this is just how these things go in Australia. We’ll have the opportunity to engage with the company and see if we can work our way towards something that the company can be supportive of. We’ll look forward to getting into due diligence and firming things up.

What about the loss of the coal energy generation?

A significant part of AGL’s energy generation, and Australia’s energy generation, comes from coal.

Origin Energy Ltd (ASX: ORG) recently announced that it was bringing forward the closure of Eraring to mid-2025. It said that the influx of renewables has changed the nature of demand for baseload power, undermining the economics of one of the country’s biggest coal power plants.

The AGL bidding consortium has promised not to remove AGL’s large coal power plants from the system until a similar amount of power generation has been installed.

The Australian reported on the consortium’s plan to replace 7GW of energy generation with at least 8GW of clean energy and storage.

Its goal is to make the company have net zero emissions by 2035, with Bayswater and Loy Yang A to close by 2030. This would be more than a decade quicker than the current plans by AGL.

Will power prices go up? Mr Cannon-Brookes says no and there is $20 billion to put towards clean energy and storage.

Accel Energy is the entity that will own the coal power plants after the AGL demerger.

AGL share price snapshot

Today, AGL shares have dropped 1.6%, with the S&P/ASX 200 Index (ASX: XJO) falling 1.3% amid ongoing uncertainty with Ukraine and Russia.

The post Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL) appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Coles and Cochlear impress, Nanosonics sinks
• AGL gets an offer and Australians return to the skies. Scott Phillips on Nine’s Late News
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 shares stage comeback amid Russia optimism

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 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 Bitcoin (CRYPTO: BTC) price is down 5% over the past 24 hours, currently trading for US$37,273 (AU$51,753).

Gold has gone the other way.

Bullion notched up another 0.4% overnight to trade for US$1,910 per troy ounce. That’s the highest gold price since August 2020.

Gold – and ASX gold shares – have been benefiting from increasing geopolitical uncertainty, and sliding when that uncertainty recedes.

The Bitcoin price, on the other hand, has tended to fall hard when investors look to park more of their money in perceived haven assets.

US-Russian summit proposal sent Bitcoin price higher

In yesterday’s trading, most ASX gold shares were well into the green in late morning trade even as the All Ordinaries Index (ASX: XAO) sold off. The Bitcoin price was also down 4% over the previous 24 hours.

Then news hit that United States President Joe Biden and Russian President Vladimir Putin may meet for a face-to-face summit to defuse the chances of war in Ukraine.

As we reported here yesterday, gold shares sold off intraday while the All Ords rebounded.

What we didn’t report was that the Bitcoin price also leapt 2% higher on the news.

Which brings us back to Bitcoin’s concession to gold as the go to haven asset in times of turmoil.

An unlikely substitute for gold

In a report released last month, the International Monetary Fund (IMF) noted that the Bitcoin price moves were much more in line with risk assets than haven assets like gold or investment grade bonds.

According to the IMF report:

Stronger correlations suggest that Bitcoin has been acting as a risky asset. Its correlation with stocks has turned higher than that between stocks and other assets such as gold, investment grade bonds, and major currencies, pointing to limited risk diversification benefits in contrast to what was initially perceived.

Kanish Chugh, head of distribution at ETF Securities, also doesn’t believes that the Bitcoin price moves make it an unlikely alternative investment to the likes of gold.

According to Chugh (quoted by The Australian):

Our view is that bitcoin has merits as an investment. It’s a growth alternative. However, it is unlikely to function as a substitute for gold. Bitcoin is much riskier than gold and rarely regarded as a safe haven. Gold is clearly a defensive alternative.

The gold price is up 4.5% so far in 2022, while the Bitcoin price has fallen 22.4%.

The post Have Bitcoin price falls cemented gold as the best safe-haven asset? appeared first on The Motley Fool Australia.

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• How this key metric bodes well for the Bitcoin price

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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 Monadelphous Group Limited (ASX: MND) share price is on the move today. This comes after the company released its interim report and financial results for the half-year ended 31 December 2021.

At the time of writing, Monadelphous shares are trading 8.15% higher at $10.75 apiece.

Monadelphous share price lurches forward as sales grow

Monadelphous is an engineering company that provides construction, maintenance, and industrial services to the resource, energy, and infrastructure sectors. Key takeouts from the company’s earnings results today include:

• Revenue came in at $1,065 million, up 12.% on the prior corresponding period (pcp)
• Record half-year maintenance and industrial services revenue
• Net profit after tax (NPAT) of $30.1 million, up 17.7% from the year prior
• Secured $860 million of new contracts and extensions
• 90%-owned Chilean business, Buildtek, continues to go “from strength-to-strength”
• Strategic focus on people attraction, retention, and wellbeing initiatives
• Interim dividend of 24 cents per share declared

What else happened this half for Monadelphous?

The Monadelphous share price is soaring today on the back of a positive result. A highlight from the company’s performance was that its maintenance and industrial services division achieved a record half-year of revenue.

Monadelphous says this result was underpinned by high demand for maintenance services and a surge in demand for services across both the resources and energy sectors.

The company also secured approximately $860 million of new contracts and contract extensions during the period. These contract wins were established across the resources, energy, infrastructure, and international markets.

Over in its Chile operations, Buildtek “continues to go from strength-to-strength”. As such, Monadelphous increased its shareholding in the business from 75% to 90% during the period in a vote of confidence.

Like its fellow ASX players, Monadelphous wasn’t immune to labour cost and supply chain headwinds observed throughout 2021.

“The Company continued to face labour cost and productivity pressures, with demand for labour in the industry remaining strong and COVID-19 restrictions constraining labour supply and mobility,” it remarked.

As a result of its strong NPAT of $30.1 million, the board declared a fully franked interim dividend of 24 cents per share.

Management commentary

Speaking on the result pushing up the Monadelphous share price today, managing director Rob Velletri said:

The resources sector will continue to provide opportunities, with the Australian iron ore industry remaining particularly buoyant. The demand for battery metals is forecast to remain strong and conditions in the energy sector are expected to continue to show an improving trend. The renewable energy market and developments in the hydrogen sector will also provide opportunities over the longer term.

The shortage of skilled labour will continue to be challenging. The increase in COVID-19 case numbers in Western Australia will also provide further challenges in the short-term. Monadelphous’ reputation and longstanding commitment to delivering safe, reliable and cost competitive solutions, puts it in a strong position to capitalise on these opportunities and navigate the challenging environment that lies ahead.

What’s next for Monadelphous?

According to the release, “the outlook for Monadelphous’ core markets is strong”.

“With the demand for battery metals forecast to remain strong, developments in lithium, copper, nickel, and rare earths will provide numerous prospects in the coming years,” the company said.

“These markets, along with the gold sector, will present opportunities for Monadelphous in Australia, South America, Mongolia, and Papua New Guinea.”

The level of construction activity in Australia is set to be a net positive for the company going forward, with a large number of projects having already been completed.

“Due to the timing of award and commencement of new major projects, construction activity is expected to decline in the second half of FY22, before increasing again in FY23,” Monadelphous said.

“As a result, Monadelphous’ full-year revenue for FY22 is expected to be approximately 5–10% lower than the previous year.”

Monadelphous share price snapshot

In the last 12 months, the Monadelphous share price has fallen 9%. However, since trading recommenced in 2022, it has climbed 11%.

Over the past month, it has soared another 15% and has spiked 21% in the past 5 days of trading.

The post ‘Strength to strength’: Monadelphous (ASX:MND) share price spikes 8% on strong earnings 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 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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It’s a great day for the Woodside Petroleum Limited (ASX: WPL) share price despite the broader market’s struggles.

The oil and gas producer’s stock has hit yet another 52-week high today, surging 3% to $29.04.

Though, it has since backed off. At the time of writing, the Woodside share price is $28.89, 2.48% higher than its previous close.

For context, the S&P/ ASX 200 Index (ASX: XJO) has slipped 1.1% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) is down 1.2%.

Let’s take a closer look at what might be boosting the Woodside share price today.

What’s driving Woodside’s stock today?

The Woodside share price is one of just 3 gainers on the S&P/ASX 200 Energy Index (ASX: XEJ) on Monday.

It’s joined by that of fellow oil producer Beach Energy Ltd (ASX: BPT), which has gained 2.36%.

Yet another oil giant, Santos Ltd (ASX: STO) is also in the green. Its share price is up 2.33%.

With such a pattern having emerged, many readers will assume something is going on with oil prices today. And they would be correct.

The price of oil surged overnight and is continuing its gains through today’s session.

Why are oil prices gaining?

Right now, the Brent crude oil price is U$97.27 per barrel ­– a 1.9% increase – while West Texas Intermediate has surged 2.9% to trade at US$94.00 a barrel, according to data from CNBC.

Reuters is reporting the black liquid’s value is taking off due to rising tensions between Russia and Ukraine.

While most of Australia slept, the publication reported on claims from the Russian military stating it killed 5 saboteurs who crossed the border from Ukraine.

Ukraine reportedly responded by saying that the incident was fabricated, but some are concerned it could be used as a pretext for a Russian invasion.

As Russia is one of the world’s leading oil producers, a potential conflict could hamper supply of the commodity.

Additionally, United States President Joe Biden and Russian President Vladimir Putin have agreed “in principle” to attend a summit proposed by French President Emmanuel Macron where they would discuss the tensions.

The summit will be conditional on Russia not invading Ukraine. However, the Guardian has reported that the Kremlin believes such talk is premature.

Finally, over the weekend, OPEC+ nations once again decided against easing demand for oil by increasing production, reports Reuters.

Woodside share price snapshot

The Woodside share price’s intra-day high marks the seventh time the company’s stock has surpassed its 52-week high in February.

Right now, it is 27% higher than it was at the start of 2022 and 21% higher than it was this time last year.

And it might not stop here.

As The Motley Fool Australia recently reported, Morgans has slapped the Woodside share price with a target of $30.35 and an ‘add’ rating.

The broker was impressed by the company’s recently released full year results, detailing a 262% increase to underlying net profit after tax (NPAT).

The post In a sea of red, the Woodside (ASX:WPL) share price is again hitting new highs. Here’s why appeared first on The Motley Fool Australia.

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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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The ASX share market certainly isn’t having a great day so far this Tuesday. At the time of writing, the All Ordinaries Index (ASX: XAO) has lost a depressing 1.27% and is sitting at 7,411 points. But that’s nothing compared to the Cettire Ltd (ASX: CTT) share price.

Cettire shares are currently trading at $2.00 each, down a nasty 13.79% so far today. So what could be behind this steep fall for the online luxury goods retailer?

Well, unfortunately, it’s not too clear. There hasn’t been any news or announcements out of the company today. Or indeed nothing of note since Cettire announced it was partnering with the Chinese e-commerce company JD.com Inc (NASDAQ: JD) earlier this month.

Before that, Cettire posted its half-year earnings on 3 February. These showed that the company was still growing revenue at a hefty clip (192% increase) but also showed a widening loss on the bottom line.

So let’s look at what the broader market is doing. Cettire’s sector, consumer discretionary shares, is currently the worst-performing sector on the ASX boards today. At the time of writing, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down by more than 2%. Most retailers in this sector have (as you would expect) seen steep falls today. Premier Investments Limited (ASX: PMV) shares have lost close to 3% while Temple & Webster Group Ltd (ASX: TPW) shares are down by more than 3%.

Cettire share price feels the burn…

But Cettire’s fall is far larger, so could there be anything else going on?

Well, looking at Cettire’s share price, we can see that this company has been on an incredible run in recent years. Cettire was trading at roughly 50 cents a share back in December 2020. Today’s share price of more than $2 means that this company is still up a very pleasing 302% since then. And Cettire shares remain up almost 100% over the past 12 months.

But that doesn’t mean more recent times haven’t been unkind to the Cettire share price. This is a company that remains down 14.5% over the past 6 months and a horrible 44% year to date.

So perhaps investors see the Cettire share price as having more hot air than most, which might be why it has been losing so much steam in recent months. Or perhaps investors have just been supremely disappointed by Cettire’s recent earnings and are punishing the company for it. Whatever the reason, I’m sure Cettire shareholders are hoping that the next two months prove to be more successful than the last two.

At the current Cettire share price, this company has a market capitalisation of around $762 million.

The post The Cettire (ASX:CTT) share price is plunging 14% today. What’s going on? 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. owns and has recommended Cettire Limited and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended JD.com. The Motley Fool Australia has recommended Cettire Limited, JD.com, Premier Investments Limited, and Temple & Webster Group 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 Altium Limited (ASX: ALU) share price has continued its slide on Tuesday.

In afternoon trade, the electronic design software provider’s shares are down over 3% to $31.35.

This means the Altium share price is now down approximately 10% since the release of its half year results.

Why is the Altium share price tumbling?

In case you missed it, on Monday Altium released its half year results. The company reported a 28% increase in half year revenue to US$102 million and a 38% lift in net profit after tax to US$23 million.

However, taking the shine off the result was management’s guidance for the full year.

Although it now expects to hit the high end of its revenue guidance range, it only expects to achieve the low end of its margin guidance range. This implied a miss for its full year earnings based on consensus forecasts at the time.

Is this a buying opportunity?

The team at Bell Potter appear to believe the weakness in the Altium share price could be a buying opportunity.

According to a note, the broker has retained its buy rating, albeit with a slightly trimmed price target of $38.75.

Based on the current Altium share price, this implies potential upside of almost 24% for investors over the next 12 months.

What did the broker say?

The broker has made some revisions to its estimates, but remains positive on its future.

Bell Potter said: “Altium provided a soft upgrade of its FY22 revenue guidance from US$209-217m to US$213-217m. The company also, however, said the EBITDA margin would be at the low end of the 34-36% range and this was due to pursuing “new cloud and enterprise sales roles in an increasingly competitive talent market”. Altium also reiterated its FY25/26 aspirational revenue target of US$500m and on the conference call CEO Aram Mirkazemi said this target was looking more achievable following the H1 result.”

“We have downgraded our EPS forecasts by 4%, 2% and 1% in FY22, FY23 and FY24. The downgrades have been driven by decreases in our margin estimates while our revenue forecasts are close to unchanged. Note our revenue growth forecasts in FY23 and FY24 are in the high teens whereas to achieve the $500m target in FY25/26 the annual growth rate needs to be >20% (so we are being more conservative),” it concludes.

The post Is the Altium (ASX:ALU) share price in the buy zone following its results? appeared first on The Motley Fool Australia.

More reading

• Why Altium, PointsBet, Tyro, and Zip shares are sinking today
• ASX 200 (ASX:XJO) midday update: AGL rejects takeover offer, A2 Milk shoots higher
• Altium (ASX:ALU) share price sinks 9% on half-year results
• 2 buy-rated ASX growth shares with big futures
• Own Altium (ASX:ALU) shares? Here’s what to expect from its half year 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. owns and has recommended Altium. 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 Peter Warren Automotive Holdings Ltd (ASX: PWR) share price is advancing on Tuesday afternoon. This comes after the Australian automotive dealership group announced its first-half results for the 2022 financial year.

At the time of writing, Peter Warren shares are up 4.53% to $2.77. For comparison, the All Ordinaries Index (ASX: XAO) is down 1.19% to 7,417 points.

Peter Warren share price climbs amid strong H1 FY22 result

The Peter Warren share price is heading north today following the company’s performance for the 6 months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $779.2 million, up 4% on the prior corresponding period (H1 FY21 $749.6 million)
• Earnings before interest, taxes, depreciation and amortisation (EBITA) of $54 million, up 28% (H1 FY21 $42.3 million)
• Underlying EBITDA margin of 6.9%, up 130 basis points (H1 FY21 5.6%)
• Underlying profit before tax (PBT) of $36.2 million, up 35% (H1 FY21 $26.9 million)
• Fully franked inaugural interim dividend of 9 cents per share

How did Peter Warren perform in H1 FY22?

In the first half of FY22, Peter Warren recorded sales revenue of $778 million, up 4% on the prior corresponding period. This is despite government-mandated lockdowns which impacted volumes as well as Honda’s switch to an agency model in July, which is estimated to have cost $12 million.

Under an agency model, Peter Warren does not recognise revenue and the cost of goods associated with the sale of new vehicles. This has since been replaced by commission revenue for delivery.

Along with operating costs being well managed, management responded to the ever-changing conditions related to COVID-19.

As such, the group experienced strong levels of demand across the eastern seaboard, with its order book (for NSW and QLD) up 97%. The diversity of brands in Peter Warren’s portfolio has helped counter the uncertainty surrounding the supply of vehicles.

The company also secured a $96 million debt facility which leverages its property assets to support its growth strategy.

What did management say?

CEO Mark Weave commented on the results driving the Peter Warren share price today:

…Despite a challenging period impacted by COVID-19 lockdowns and supply constraints across our OEM partners, we have materially progressed our strategic geographic expansion and our omni-channel sales approach to great success.

We welcome the Penfold Motor Group and its experienced management team into our group and look forward to further expanding our operating footprint over time, as we deliver our auto mall concept to Victoria.

This result reflects the underlying strength of our business and is a credit to our teams who continue to adapt to the changing market conditions. Reflecting this, the Board has declared an interim dividend in line with our target payout ratio to provide a return to our shareholders.

What’s the outlook for Peter Warren?

Looking ahead, Peter Warren remains optimistic about the continuation of earnings for the full financial year.

A strong order book, anticipated improvement in new vehicle supply, and underlying demand are expected to underpin future performance.

However, limited downward pressures on new vehicle margins are forecasted in the period to 30 June 2022.

Nonetheless, the acquisition of the Penfold Motor Group in December 2021 will contribute to revenue in the second half.

The company refrained from providing earnings or profit guidance for the FY22 full year.

Peter Warren share price snapshot

The Peter Warren share price is down around 20% over the past 12 months. It has also fallen 6% this year to date and 4.5% over the past month.

The post ‘Great success’: Peter Warren (ASX:PWR) share price revs up on robust first-half results appeared first on The Motley Fool Australia.

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Shares in AVA Risk Group Ltd (ASX:AVA) are on the move today following a company announcement.

AVA says that it intends to return capital to shareholders as previously announced in August 2021. After securing a stockpile of cash, the company has deliberated and come to a decision on how best to reward its shareholders with these funds.

At the time of writing, the AVA share price is trading 3% higher at 41.5 cents apiece as investors respond positively to the company’s release.

AVA Risk Group to return capital to shareholders

Investors might recall that back in August last year, AVA announced that it wanted to redistribute ‘excess cash’ of around $39 million to shareholders.

The proposal to distribute the funds was contingent on receipt of a favourable class ruling from the Australian Tax Office (ATO) regarding the treatment of the funds, to see if they could be treated as capital or not.

AVA notes that the ATO has responded to its class ruling application, indicating that “it would be willing to treat $7.567 million of the proposed $39.2 million as capital in nature”.

The board considered all options of how to return the excess funds to shareholders and came to a final investment decision that sees AVA shareholders benefit from the company’s good fortune.

After careful consideration, it decided to make two distributions. The first is a special dividend of 13 cents per share, totalling a distribution of approximately $31.585 million.

Whereas the second payment is set to be a capital return of 3.114 cents per share for a sum of around $7.567 million.

On 28 February 2022 –the special dividend’s record date – investors will receive an unfranked dividend of 13 cents per share, to be paid on 10 March 2022, per the release.

With respect to the details of the capital return, AVA remarked:

The Company will seek shareholder approval to reduce the ordinary share capital of the Company by approximately $7,567,000 and such reduction in capital to be effected by the Company paying to each registered holder of a fully paid ordinary share the amount of $0.03114 per share. Shareholder approval will be sought at an Extraordinary General Meeting on 22 April 2022. Further details relating to Capital Return, Record Date and timetable will be provided within a Notice of Meeting which will be issued to shareholders in the near future.

AVA Risk Group share price snapshot

In the last 12 months, the AVA share price has faltered over 32%, however has spiked almost 3% since trading recommenced this year.

The post Payday! Here’s why the Ava Risk (ASX:AVA) share price is surging higher today appeared first on The Motley Fool Australia.

More reading

• ‘Great success’: Peter Warren (ASX:PWR) share price revs up on robust first-half results
• Here’s why the Strike Energy (ASX:STX) share price is 6% higher today
• ‘The sleeper has awakened’: Top broker gives its verdict on the A2 Milk (ASX:A2M) share price
• Think VAS is the best ASX index fund? These ETFs have beaten it over the past decade…
• Judo (ASX:JDO) share price lifts on bullish guidance

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

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