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The Boss Energy Ltd (ASX: BOE) share price leapt 8% higher in the early minutes of trade before giving back all those gains to fall 2% lower than it closed on Friday.

In mid-morning trading, Boss Energy’s share price is 2.22% in the red at 22 cents a share.

Below, we take a look at the latest announcement from the ASX uranium producer.

What did Boss report?

Boss Energy’s share price has been on a rollercoaster after the company reported the front-end engineering and design (FEED) process at its Honeymoon Project in South Australia is running ahead of schedule.

According to the release, this has “cemented its position as Australia’s most advanced emerging uranium producer”.

Boss said that the primary goals of the FEED process include:

• Finalising key technical decisions
• Producing foundation technical documents
• Confirming product specifications
• Refining budget and scope for the project

The company now forecasts it can finish the FEED work early in 2022 at which stage it can commence design work and order long-lead items.

Commenting on the progress, Boss Energy’s managing director Duncan Craib said:

We continue to extend our advantage as the most advanced emerging uranium producer in Australia. We have a plant on care and maintenance, other significant production and storage infrastructure in place, we have formed an Owner’s Team to restart Honeymoon and we are moving through the FEED stage rapidly.

Boss also noted that uranium is trading at 6-year highs of US$39.00 per pound. In March, Boss bought 1.25Mlbs of uranium for US$30.15/lb at a total cost of US$37.68 million. It said that at current spot prices, this inventory is now worth US$48.75 million.

Boss Energy share price snapshot

The Boss Energy share price is up a whopping 121% year-to-date. That compares to a gain of 12% posted by the All Ordinaries Index (ASX: XAO).

Over the past month, Boss Energy’s share price is up 28%.

The post What’s happening with the Boss Energy (ASX:BOE) share price today? appeared first on The Motley Fool Australia.

More reading

• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.
• Up 29% this week, the Boss Energy (ASX:BOE) share price is soaring again
• Why the Boss Energy (ASX:BOE) share price is soaring 6% 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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Investors hoping for a takeover of Sydney Airport Holdings Pty Ltd (ASX: SYD) might be cursing the recent rally in its share price.

The consortium of infrastructure investors – dubbed the Sydney Aviation Alliance – that’s been futilely bidding for ownership of the airport reportedly might need to increase their bid price to $9 per share.

This follows Sydney Airport stock’s recent 18 cent gain.

The rally was seemingly triggered on 26 August when Qantas Airways Limited (ASX: QAN) announced its planned return to international travel. Over the 10 trading days following Qantas’ announcement, Sydney Airport’s stock moved to finish last week trading at $7.93.

However, the Sydney Airport share price is slipping today. It’s currently $7.81, 1.51% lower than its previous close.

Let’s take a closer look at today’s news of Sydney Airport.

Has the final hammer fallen for the alliances’ takeover?

The recent Sydney Airport share price rally might have been detrimental to Sydney Aviation Alliance’s hopes to control the airport. However, bids may be back on the table following today’s share price drop.

Reporting by The Australian stated the airport’s previous gains might have seen the alliance tap out.

The Sydney Aviation Alliance put forward a bid to buy 100% of Sydney Airport’s stock in July, offering $8.25 a share. After its offer was rejected, it upped its bid to $8.45 apiece. Again, the airport denied the bid.

It stated both bids undervalued the airport and were taking advantage of COVID-19‘s impact on travel.

According to The Australian, the alliance may have needed to up its bid to $9 per share to gain the airport’s acceptance.

It seems Sydney Airport’s gains might have been bad news for investors hoping the takeover will eventuate.

One such investor may have been UniSuper, which holds a 15% stake in the airport. UniSuper has agreed to vote in favour of the takeover if it can reinvest its holding into the alliance.  

Yet market watchers looking at the Sydney Airport share price rally with trepidation will likely be feeling hopeful this morning.

Sydney Airport share price snapshot

Today’s fall included, the Sydney Airport share price has gained 21% year to date. It is also 33% higher than it was this time last year.

The post Why some investors may be hoping the Sydney Airport (ASX:SYD) share price falls appeared first on The Motley Fool Australia.

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• When was the worst ever day on the Sydney Airport (ASX:SYD) share price chart?
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• ASX 200 Weekly Wrap: A mixed bag of earnings dominates ASX
• Why the Sydney Airport (ASX:SYD) share price has beaten the ASX 200 in the last year
• If you invested $1,000 in Sydney Airport (ASX:SYD) shares a decade ago, here’s what it would be worth now

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 Aussie Broadband Ltd (ASX: ABB) share price is a top performer on Monday. It comes after the company announced a strategic fibre swap deal to expand its geographic reach.

Shares in the telecommunications company were trading 9.3% higher in early trade to a new high of $4.70. At the time of writing, Aussie Broadband shares have retreated to $4.60, up 6.98%.

Aussie Broadband share price surges on fibre swap partnership

Aussie Broadband announced a 10-year deal with VicTrack (Victorian Rail Track Pty Ltd). The deal is to swap access to their respective fibre networks.

Under the swap agreement, VicTrack will provide Aussie Broadband access to its fibre network throughout Victoria.

In return, Aussie Broadband will provide access to its fibre network throughout Victoria. It will also construct access for VicTrack to a number of its NBN POIs (points of interconnect).

Aussie Broadband will pay for the cost of the initial VicTrack POI connections, estimated to be $1.4 million.

The company said that the agreement will “significantly increase the geographic reach of Aussie Broadband’s fibre network, especially into regional Victoria.”

Further, it will enable the rollout of its own business fibre services into regional areas. That includes Traralgon, Morwell, Warragul, Pakenham, Geelong, Ballarat, Bendigo, and Warrnambool. The service will provide speeds of up to 100G.

Another benefit of the swap agreement is that it will free up capital expenditure originally planned for Victoria. Instead, the company will allocate those funds to “expand the network in other states.”

Management commentary

Aussie Broadband managing director Phillip Britt welcomed the partnership:

Smart partnerships like this one with VicTrack enable us to not only expand our network beyond what was originally planned, but also frees up capital to improve our reach in other states.

This is a win for Aussie Broadband, a win for VicTrack and most importantly, a win for our customers and their access to high speed, quality internet connections.

A breakthrough year for the Aussie Broadband share price

The Aussie Broadband share price is up 130% year to date.

It is fast approaching the 500% mark from its listing price of just $1 back in October 2020.

The post Up 9%, the Aussie Broadband (ASX:ABB) share price hits all-time high appeared first on The Motley Fool Australia.

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• The Aussie Broadband (ASX:ABB) share price is up 40% in a month. What’s next?
• Aussie Broadband (ASX:ABB) share price rallies 4% on bumper earnings
• Why the Aussie Broadband (ASX:ABB) share price rose 8% to a new high
• Why the Aussie Broadband (ASX:ABB) share price just hit a new all-time high

Motley Fool contributor Kerry Sun owns shares of Aussie Broadband Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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 S&P/ASX 200 Index (ASX: XJO) is up 11% over the past 6 months. Another very strong period as the companies continue to recover from the initial hits of the pandemic.

Of course, not all ASX 200 shares are created equal.

Some have gained far more than 11% while others have underperformed the index over the half year.

Below we look at 2 ASX 200 shares, one that’s outperformed and another that’s lagged the index.

They have a few things in common though.

First, they’re both multi-billion-dollar Aussie real estate owners and managers.

Second, they’ve both been upgraded to ‘buy’ ratings by investment advisory group Jarden, which sees strong potential gains ahead.

This ASX 200 share tipped for more outperformance

The first of the ASX 200 shares rated as a ‘buy’ by Jarden analysts Lou Pirenc and Andy MacFarlane is Charter Hall Group (ASX: CHC). Charter Hall is an integrated property group that manages both ASX-listed and unlisted property funds.

As the Australian Financial Review reports, Jarden believes Charter Hall “could deliver a 15.5 per cent total return to its investors” over the coming year. According to the analysts:

We continue to be supportive of the dedicated fund managers, as ongoing assets under management growth, strong demand from co-investors, fund performance and investment capacity should drive superior growth.

The Charter Hall share price is up 51% over the past 6 months. At the current share price of $18.11, it pays an annual dividend yield of 2.1%, 39% franked.

Australia’s largest listed retail landlord

Jarden analysts are broadly bullish on ASX real estate investment trusts (REITs) for the year ahead, pointing to increased investor confidence on a reopening rebound.

In a note, quoted by the AFR, they wrote:

We appreciate the structural pressures from online and cost inflation but believe the market is underestimating the growth and rerating potential from gross [rent] collection levels to return to pre-COVID levels.

Which brings us to the second of the ASX 200 shares tipped to outperform.

Namely, Scentre Group (ASX: SCG), the owner and operator of Westfield shopping centres across Australia and New Zealand.

Jarden has upgraded Scentre to a ‘buy’ rating. The analysts forecast a 24.9% total return over the coming 12 months. That includes a 5.1% dividend yield, unfranked.

The Scentre share price is flat over the past 6 months, currently trading at $2.87 per share.

But if Jarden has it right, both these ASX 200 shares could see their share prices significantly higher this time next year.

The post Two leading ASX 200 shares tipped to outperform: analyst appeared first on The Motley Fool Australia.

More reading

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• Here are the 3 most traded ASX 200 shares this Tuesday

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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Nuix Ltd (ASX: NXL) and its shareholders have had a rough year.

The company that entered the ASX in December with much hype and fanfare has seen the stock price fall from a high of $11.86 to now $2.67.

Much of the descent has been self-inflicted, with a combination of financial downgrades and external governance investigations killing investor confidence.

Last week, the long-awaited yearly results failed to impress the market. The same afternoon saw $340 million worth of shares released from escrow, allowing now-departed executives and Macquarie Group Ltd (ASX: MQG) to sell off their holdings.

Unfortunately, the news doesn’t get better for anyone concerned with the analytics software business.

Bouncers throw Nuix out of the ASX 200

After market close on Friday, the news came that Nuix would be removed from the S&P/ASX 200 Index (ASX: XJO).

The indignity will come before the ASX opens on Monday 20 September.

The move is significant because passive funds that follow the ASX 200 will be forced to sell off Nuix shares, pushing up supply of the stock.

Boosted supply could lead to a price plunge. Already in early Monday morning trade, Nuix shares have lost 1.5% off their value and are trading at $2.63 at the time of writing.

The stock price will be further in focus until 20 September hits.

Nuix did not comment on its exclusion from the index.

Cooperating with authorities

Last week, the company revealed that the Australian Securities and Investments Commission (ASIC) has been in touch.

“Nuix can confirm that it has today received notices from ASIC seeking documents,” the board stated to the ASX.

“Nuix will, of course, cooperate fully with ASIC’s investigation.”

The corporate watchdog is reportedly investigating the integrity of financial information presented in its initial public offer prospectus.

ASIC will be reviewing the numbers Nuix presented for the 2018, 2019 and 2020 financial years.

The post Nuix (ASX:NXL) faces yet another indignity appeared first on The Motley Fool Australia.

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• Will ASX 200 shares be rocked by RBA taper talk tomorrow?
• ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise
• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200

Motley Fool contributor Tony Yoo owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 Weebit Nano Ltd (ASX: WBT) share price won’t be going anywhere on Monday.

The memory technology company’s shares have been halted since Wednesday 1 September.

Why is the Weebit Nano share price frozen?

The Weebit Nano share price was put in a trading halt last week when it was not in a position to make an announcement. This was regarding an incomplete negotiation relating to a material customer contract that has ceased to be confidential.

Management requested that the suspension remains in place until the earlier of commencement of normal trading on 9 September, or until the release of an ASX announcement.

What has ceased to be confidential?

Bizarrely, the confidentiality breach appears to have occurred following the release of the wrong press release by its media representative.

That release revealed that the company has (though apparently not quite yet) entered into a commercial partnership with US semiconductor foundry SkyWater Technology Inc. (NASDAQ: SKYT).

The agreement, if it finalises, aims to take the company’s ReRAM technology to mass production.

Furthermore, the release advises that under the partnership, SkyWater will have licences to Weebit’s ReRAM technology for use in customer designs.

The release explains that SkyWater is a US-based-and -owned semiconductor developer, manufacturer and a US Department of Defense-accredited supplier. It specialises in advanced product design, development and volume manufacturing of differentiated Integrated Circuits (ICs) for use within the aerospace, defense, automotive, consumer, industrial and IoT industries.

Weebit Nano‘s CEO, Coby Hanoch, said: “Weebit’s first commercial agreement is a major milestone for the Company. It enables us to mass produce our cutting-edge ReRAM technology and offer it to SkyWater’s extensive customer base, putting us on the path to ongoing revenue generation. SkyWater is the ideal first commercial partner for us – they have an impeccable reputation in microelectronics industry, and our ReRAM aligns with their focus on technologies for the future.”

All eyes will be on the Weebit Nano share price when it returns to trade, especially if it finalises this agreement successfully.

The post Why is the Weebit Nano (ASX:WBT) share price frozen? appeared first on The Motley Fool Australia.

More reading

• Why the Weebit Nano (ASX:WBT) share price has bounced 9% today
• Weebit Nano (ASX:WBT) share price falls as losses accelerate 180%

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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ASX 200 bank shares such as the Commonwealth Bank of Australia (ASX: CBA) are in the spotlight after financial regulator AUSTRAC found Australia’s big 4 banks were at “high” risk to money laundering and terrorism financing activities.

At the time of writing, the CBA share price is $100.67 – down 1.15%, Westpac Banking Corp (ASX: WBC) shares are $25.68 – down 1.31%, the National Australia Bank Ltd (ASX: NAB) share price is $28.43 – down 0.94%, and Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are $27.68 – down 0.68%.

Let’s take a closer look at today’s news.

‘There have been significant and systemic deficiencies detected’

In what may be driving a mass exodus from ASX 200 bank shares today, AUSTRAC, the federal government agency responsible for tracking financial crimes such as money laundering and terrorism funding, concluded a risk assessment into the susceptibility of Australia’s big 4 banks to facilitate these crimes.

It found the banks were at a high risk overall. The threat of money laundering was rated as high while the potential risk of terrorism funding activities was seen as a medium.

Concerningly, the regulator found Australia’s big 4 banks are at the highest possible levels of vulnerability to these risks. AUSTRAC cited large customer bases, high exposure to cash, and ‘very high’ exposure to foreign jurisdictions as reasons for this rating.

As well, AUSTRAC considers consequences for customers, the financial system, and national security would be ‘major’ if these criminal activities were to occur.

According to the report:

“…there have been significant and systemic deficiencies detected in the subsector over recent years. Governance and assurance around [money laundering and terrorism financing] compliance has been identified as a particular concern, and risk mitigation strategies are not always applied consistently across a reporting entity.”

It seems investors may also be quite concerned by these findings, judging by the declines in ASX 200 bank shares on Monday.

What did AUSTRAC say?

AUSTRAC CEO Nicole Rose urged Australia’s big 4 to take these risks seriously.

“Criminals will exploit any gaps and use sophisticated methods for their own personal greed,” Ms Rose said.

“We are navigating a rapidly changing financial system and advances in technologies and platforms. That is why government, law enforcement and the finance sector must continue to work together to protect Australia’s financial system and Australians from serious and organised crime.”

ASX 200 bank shares snapshot

Over the past 12 months, ASX 200 bank shares have all overperformed the S&P/ASX200 Index. These shares have risen anywhere from 50% – 63% during this time. Meantime, the ASX 200 is 25% higher over the last 52 weeks.

The post ASX 200 bank shares fall as AUSTRAC says risk of criminal activity is ‘high’ appeared first on The Motley Fool Australia.

More reading

• Will ASX 200 shares be rocked by RBA taper talk tomorrow?
• Analysts name 2 ASX 200 dividend shares to buy
• Is the NAB (ASX:NAB) share price a buy for its 6.6% dividend yield?
• What is the outlook for the ANZ (ASX:ANZ) share price?
• Is the CBA (ASX:CBA) share price a buy for the 6% dividend yield?

Motley Fool contributor Marc Sidarous owns shares of Westpac Banking Corporation. 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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Tyro Payments Ltd (ASX: TYR) and SeaLink Travel Group Ltd (ASX: SLK) shares will be in focus this week. 

This is because, after market close last Friday, both companies were named as joining the exclusive S&P/ASX 200 Index (ASX: XJO) club later this month.

Tyro and SeaLink Travel stocks will enter the index before market open on Monday 20 September.

Aside from the glory, the move could have a material impact on share price for the payments and transport companies.

That can happen due to passive funds that follow the ASX 200 being forced to buy Tyro and SeaLink shares. And when demand rises, so can the price.

Tyro leaves its troubles behind

It’s a stunning turnaround for Tyro, which saw its stock price plummet back in January when thousands of its card payment terminals failed. 

That episode forced the company to physically collect “bricked” devices for repair, as they couldn’t fix the bug remotely.

To rub salt into the wound, a short seller then released a stinging rebuke that claimed Tyro was under-reporting the number of affected clients. That instantly cut 12% off the share price before a trading halt was called.

The reputational damage from that disaster now seems to be a distant memory. The share price has gained a net 12.3% over the past 12 months.

Tyro did not comment on its inclusion in the ASX 200.

SeaLink caps off a stunning year

SeaLink had a more linear path leading to its admission into the ASX 200.

Despite COVID-19 pressures, a mix of organic and acquisition growth has sent its stock price 77.7% upwards over the past 12 months.

“Securing a place in the ASX 200 is recognition of the dedicated commitment and collective effort from everyone at SeaLink,” said SeaLink chief executive Clint Feuerherdt.

“Being part of the ASX 200 will provide greater investor exposure, expanded access to capital and a new peer group that will drive us to even higher levels of performance, governance and professionalism.”

Feuerherdt credited the company’s takeover of Transit Systems bus company for diversifying its revenue sources.

“The Transit Systems acquisition has enabled us to reposition the business to be underpinned by approximately 90% contracted and non-discretionary essential transport services.”

“From a mining site, or metropolitan city, to a suburban school run or remote island ferry connection, we understand our customers’ needs and we work tirelessly to deliver efficient and intelligent services tailored to each community that we serve.”

The post Why Tyro (ASX:TYR) and SeaLink (ASX:SLK) share prices could be moving up appeared first on The Motley Fool Australia.

More reading

• Will ASX 200 shares be rocked by RBA taper talk tomorrow?
• ASX 200 Weekly Wrap: ASX puts earnings season to bed with another rise
• ASX quarterly rebalance: A2 Milk dumped from ASX 50, Nuix kicked out of ASX 200
• 5 things to watch on the ASX 200 on Monday
• 2 ASX shares that may be worth looking at this weekend

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tyro Payments. 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 continues its recent momentum, surging 8.33% in early trade on Monday.

At the time of writing, the uranium miner’s share price is up 5.13% at 82 cents a share.

Here’s what might be driving the Paladin Energy share price to fresh multi-year highs.

Surging uranium prices

Uranium prices bounced back to a six-year high of US$35/lb last week.

This witnessed broad-based buying across the ASX uranium sector, from large cap players like Paladin Energy to small cap explorers such as Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL) and Peninsula Energy Ltd (ASX: PEN).

To capitalise on recovering uranium prices, Paladin Energy is looking to restart operations at its “globally significant” Langer Heinrich Mine located in Nambia.

The project began producing uranium back in 2007 with a peak production of 5.6 million lbs in 2014, before transitioning into care and maintenance in August 2018 due to the sustained low uranium price.

Paladin Energy successfully raised $192.5 million back in March to prop up its balance sheet in preparation for Langer Heinrich’s restart.

During FY21, Paladin Energy kicked off its mine restart plans, progressing “critical-path elements” such as mine optimisation, the appointment of key contractors and a high-level project delivery schedule.

In Paladin Energy’s annual report to shareholders, CEO Ian Purdy said:

At the Langer Heinrich Mine we continue to focus on the continued de-risking of the mine restart. We continue to engage with global nuclear energy utilities to secure long term contracts to underpin the restart of the Langer Heinrich Mine and ensure the project, when re-started, will deliver significant economic benefit to all of our shareholders.

Paladin Energy share price joins the ASX 300

Paladin Energy will be making its well-deserved entry into the S&P/ASX 300 (INDEXASX: XKO) on 20 September.

Shares in the uranium producer have surged 67% in the past month and 239% year-to-date thanks to a jump in spot prices.

The post Why the Paladin Energy (ASX:PDN) share price is up 5% on Monday appeared first on The Motley Fool Australia.

More reading

• Guess which sector last week’s top performing ASX shares come from
• ASX uranium shares are booming this week. Here’s why.
• Up 50% this week, the Paladin Energy (ASX:PDN) share price is booming. Here’s why.
• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• Which ASX 300 shares are the biggest winners and losers on Thursday?

Motley Fool contributor Kerry Sun 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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There are a few ASX growth shares that are top candidates for potential growth and may represent good value.

Businesses inn the technology space can be particularly attractive potential ideas because of the low cost of adding additional subscribers or users.

The below two could be worth looking at:

ELMO Software Ltd (ASX: ELO)

ELMO offers cloud-based solutions for small and medium organisations to manage their people, processes and pay. It operates in Australia, New Zealand and the UK. It generates revenue under a software as a service (SaaS) model.

The business offers a number of modules, allowing it sell more services to the same client. It makes the client more valuable to ELMO and increases the value of ELMO to the client.

ELMO just released another module called COVIDsecure, which enables businesses to track employees’ vaccination and test status. The company pointed out that many businesses have announced they will be mandating vaccinations among their workforce.

The ASX growth share saw substantial growth in FY21. Revenue increased by 38.1% to $69.1 million, whilst annualised recurring revenue (ARR) went up 52.1% to $83.8 million. Cash receipts increased 38.8% to $79.8 million. It generated $0.3 million of earnings before interest, tax, depreciation and amortisation (EBITDA), which was an increase of $3.3 million.

In FY22, ELMO is expecting more growth. Revenue is expected to reach between $90.5 million to $95.5 million. EBITDA is expected to be between $1 million to $6 million. ARR is predicted by the company to rise to a range of $105 million to $111 million.  

Class Ltd (ASX: CL1)

Class is a cloud accounting software business that predominately serves the self-managed superfund (SMSF) sector.

The business has also used an acquisition strategy to grow in the corporate compliance sector. In this segment it has NowInfinity, Smartcorp, Reckon Docs and Topdocs. This gives the ASX growth share the opportunity to diversify its earnings and grow its client relationships.

Class saw FY21 operating revenue and other income increase by 25% to $54.9 million and underlying EBITDA increased 15% to $21.9 million. It maintained its underlying EBITDA margin of 40%, in line with its guidance.

The ‘roll forward revenue’ at 30 June 2021 was $59.8 million, an increase of 21.5%.

Class is thinking about its ongoing growth. It pointed out that it has funded four acquisitions that added to earnings through cash and debt to minimise dilution for shareholders. Management said the balance sheet is “very healthy” and free cash flow from operations is increasing as the business grows and achieves economies of scale.

The ASX growth share has identified a number of further opportunities to grow through acquisition.

Class is currently rated as a buy by the broker Ord Minnett with a price target of $2.40. That suggests the Class share price could rise by 30% over the next 12 months if the broker is right.

The post 2 top ASX growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 3 ASX growth shares that analysts love
• 3 ASX growth shares named as buys
• ELMO (ASX:ELO) share price tipped to jump 54% higher from here
• The ASX reporting wrap-up: Suncorp, Transurban, ELMO
• Why ELMO, Flight Centre, Northern Star, & Regis shares are dropping

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. owns shares of and has recommended Elmo Software. The Motley Fool Australia owns shares of and has recommended Class Limited and Elmo Software. 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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