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The Aldoro Resources Ltd (ASX: ARN) share price is off to the races today, up 25.88% to 54 cents in early afternoon trading.

Below we take a look at the ASX resource explorer’s mineral results that look to be driving investor interest.

What did Aldoro report?

Aldoro’s share price is soaring after the company reported it may have uncovered “world class” rubidium potential at its Niobe Project in Western Australia.

The company said it had re-evaluated the Niobe Project, which has been mined for tantalum, with historical rubidium oxide (Rb2O) of up to 1.09% analysed from reverse circulation (RC) drill holes conducted in the mid-1980s.

According to the release, the exploration target of approximately 33,000-150,000 tonnes held grades ranging 696-1,457 parts per million (ppm) rubidium oxide (Rb2O) over an area of 80 metres by 65 metres of detailed historical drilling.

The Aldoro share price could also be getting a boost with the report that this area is less than half the total mapped section of the Niobe pegmatite, with the rest as yet untested.

Management commentary

Commenting on the results, Aldoro chairman Joshua Letcher noted:

It seems that the potential resources of the Niobe Rb project of Aldoro Resources Limited may be in the same order with the Tiantongshan rubidium deposit with analyses of Rb2O>1.5% and is associated with other valuable elements, such as lithium, caesium and tantalum.

Letcher was referring to the Tiantongshan rubidium deposit discovered in China’s Guangdong province in 2019. According to Letcher, that had Rb20 resources of more than “100,000 tonnes at the average grade 0.109% Rb2O … the biggest Rb deposit in the world”.

Aldoro noted that its Niobe prospect rubidium potential was approximate and at this time remained “conceptual in nature”. It is uncertain if future exploration will result in the estimation of a mineral resource.

Pending the approval of a works program, Aldoro intends to start drilling at its Niobe Project in late September.

Aldoro share price snapshot

Over the past 12 months, the Aldoro share price has gained 568% compared to a gain of 23% posted by the All Ordinaries Index (ASX: XAO).

Year-to-date, Aldoro’s share price has continued to charge higher, up 256% in 2021.

The post Why the Aldoro (ASX:ARN) share price is rocketing 26% today appeared first on The Motley Fool Australia.

More reading

• Aldoro Resources (ASX:ARN) share price slides 11% despite drilling update

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 has been another eventful day for the Kuniko Ltd (ASX: KNI) share price on Friday.

At one stage today, the battery metals explorer’s shares were down as much as 29% to $1.55.

But just 90 minutes later the Kuniko share price was up 22% for the day at $2.65.

What’s going on with the Kuniko share price?

The Kuniko share price has been heavily traded this week since landing on the ASX boards on Tuesday. This follows its spin off from clean lithium developer Vulcan Energy Resources Ltd (ASX: VUL) with a listing price of just 20 cents.

While the company’s shares took off on day one, there was particularly strong interest in them on Thursday. This was due to the release of an update that got investors excited about its future prospects.

That release reveals that Kuniko has now kicked off geochemical sampling programs with a significant schedule of activity across its projects in Norway.

What is Kuniko exploring?

The Norway based battery metals explorer is targeting three fundamental metals for electromobility: Cobalt, Nickel and Copper. It is doing this at a suite of historical producing battery metals projects, with minimal previous modern exploration.

And much like former parent Vulcan Energy, the company’s extraction and production processes will aim to be carbon neutral and work in harmony with the environment. This is by harnessing the region’s natural energy.

The company notes that Europe will require a large volume of battery metals to support the >800 GWh battery manufacturing capacity required by 2030 to supply the electric vehicle market.

Per annum, this equates to approximately 160,000 tonnes of cobalt, 500,000 tonnes of nickel and 1,300,000 tonnes of copper. Kuniko believes it has an advantage by being ESG compliant and meeting EU regulations.

What else is happening?

Due to the incredible rise in the Kuniko share price since listing, it was dealt a speeding ticket by the Australian share market. It also prompted a report in the AFR claiming that Kuniko shares are being pumped and dumped by stock promoters.

And while the company has acknowledged that it has appointed online investor relations company S3 Consortium, it stated that “it has no relationship whatsoever with the Telegram group [app] referred to in the AFR news article, or any intraday or meme stock promoters.”

The post What’s going on with the Kuniko (ASX:KNI) share price? appeared first on The Motley Fool Australia.

More reading

• Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today
• Why the Kuniko (ASX:KNI) share price is rocketing 96% higher today
• Kuniko (ASX:KNI) share price jumps 500% on ASX debut

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 Rhinomed Ltd (ASX: RNO) share price is racing into uncharted territory today. This comes after the medical device company announced it has completed development of a nasal swab designed for children.

The news sent Rhinomed shares flying to an all-time high of 46.5 cents. However, some profit-taking has forced a pullback to 39.5 cents, up 23.44% at the time of writing.

What’s driving the Rhinomed share price higher?

Investors are scrambling to pick up Rhinomed shares following the positive news from the company.

According to its release, Rhinomed has created the “Rhinoswab Junior”, a world-first alternative method for testing children.

Designed to deliver the same benefits as the existing Rhinoswab, the new product has several novel child-friendly features. This is aimed at reducing fear, anxiety, and trauma associated with the use of existing nasal swabs on the market.

Rhinomed highlighted that it has received Human Research Ethics Committee (HREC) approval to commence a clinical trial at The Royal Children’s Hospital in Melbourne.

The study will investigate the diagnosis of respiratory viruses such as SARS-CoV-2 (COVID-19) in children with Rhinoswab Junior. A collection of nasal samples will be taken from 250 children aged between 4 years and 18 years old. The trial is expected to be conducted for up to 50 days.

Management commentary

Commenting on the news pushing the Rhinomed share price higher, Rhinomed CEO Michael Johnson said:

With SARS-CoV-2 testing now part of our everyday lives, we need easier, more standardised and comfortable sample collection methods to encourage people to get tested.

Testing rates in children remain low due, in no small part to the levels of distress, anxiety and fear children experience when being tested with a standard swab. We have sought to develop a swab that not only works better, but actually removes this fear, anxiety and distress.

Principal investigator Dr Shidan Tosif added:

Rhinoswab Junior has the potential to turn an otherwise unpleasant experience into a far more relaxed and possibly even fun experience for children. The ability of the child to control the insertion of the device, coupled with the comfort and novelty of the Rhinoswab design, offers major improvements in the user experience.

The Rhinomed share price has gained almost 400% over the last 12 months, and more than 140% year to date.

The post Why the Rhinomed (ASX:RNO) share price is rocketing 23% today appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, IRESS, Lake Resources, & Rhinomed are storming higher
• Why the Rhinomed (ASX:RNO) share price is rocketing 90% higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned.

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The Pilbara Minerals Ltd (ASX: PLS) share price is sinking today, falling 7.67% to $2.04 in afternoon trade.

This comes after the company released its FY21 full-year results after the market close yesterday.

Wasn’t it supposed to be a great year for lithium?

FY21 has seen a major turnaround for the lithium sector, underpinned by an improvement in lithium spot prices and an uplift in demand for raw materials.

Pilbara Minerals highlighted a significant increase in demand from customers during the second half of the year. This supported a total FY21 spodumene concentrate shipment of 281,440 dry metric tonnes (dmt) (compared to 90,768 dmt in FY20).

The increase in shipments and higher spot prices doubled revenues from $81.4 million in FY20 to $175.82 million.

The uplift in demand enabled better utilisation of its processing plant. In addition, Pilbara Minerals also completed several key process plant improvements which helped increase feed, utilisation, and lithium recoveries.

Despite the strong operational and top-line performance, Pilbara Minerals recorded a $51.4 million loss (FY20: $99.3 million loss).

Looking ahead, Pilbara Minerals forecasted a spodumene concentrate production of 460,000 to 510,000 dmt and shipments of 440,000 to 490,000 dmt.

Despite a solid operational performance and production outlook, the Pilbara Minerals share price has pulled back sharply on Friday.

Broader lithium sector selloff

The Pilbara Minerals share price is swimming against the tide today, following a broader selloff for the ASX lithium sector.

Large-cap peers such as Orocobre Limited (ASX: ORE), Mineral Resources Limited (ASX: MIN) and Vulcan Energy Resources Ltd (ASX: VUL) have tumbled 5.53%, 0.95%, and 4.49% respectively.

Emerging players are also feeling the selling pressure with names such as Piedmont Lithium Inc (ASX: PLL) and Charger Metals NL (ASX: CHR) down a respective 3.92% and 2.86%.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price is up 136% year-to-date.

The company’s shares have topped out this month, down 15% from their 11 August all-time high of $2.46.

The post Pilbara Minerals (ASX:PLS) share price slides 7% after selloff in lithium sector appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Wesfarmers’ $2.3bn capital return, Appen & Pilbara Minerals fall
• Pilbara Minerals (ASX:PLS) share price on watch after doubling sales in FY21
• Here are the 3 most traded ASX 200 shares this Tuesday
• These 3 ASX 200 shares were the most heavily traded on Monday
• Here are the top 10 ASX 200 shares on Monday

Motley Fool contributor Kerry Sun owns shares of Vulcan Energy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Mayne Pharma Group Ltd (ASX: MYX) share price is sinking on Friday following the release of its full year results.

At the time of writing, the pharmaceutical company’s shares are down 10% to 26.5 cents.

This leaves the Mayne Pharma share price trading within touching distance of its multi-year low of 26 cents.

Mayne Pharma share price sinks after posting $208.4 million loss

• Revenue down 12% to $400.8 million
• Reported earnings before interest, tax, depreciation and amortisation (EBITDA) down 18% (or 5% in constant currency) to $66.1 million
• Underlying EBITDA down 10% to $86.5 million
• Loss after tax of $208.4 million

What happened in FY 2021 for Mayne Pharma?

FY 2021 was another tough year for Mayne Pharma. Currency headwinds and weak generic products sales led to a 12% year on year decline in revenue to $400.8 million. Management notes that its generic products business was impacted by new competition on key products and ongoing pricing pressures across the portfolio.

And due to Nextstellis set-up costs, the company’s EBITDA fell harder. It was down by 18% on a reported basis to $66.1 million. If you exclude these set-up costs, EBITDA would have been down just 10%. This was thanks also to operating expenditure reductions of $18 million.

But no amount of cost savings could stop Mayne Pharma from posting a loss after tax in FY 2021. It declared a loss of $208.4 million for the year. This was driven by a $229.3 million non-cash intangible asset impairments of the generic portfolio. This follows a $99 million impairment to the generics business in FY 2020.

What did management say?

Mayne Pharma’s CEO, Scott Richards, commented: “At a group level, results have been impacted by the weakening USD which had a $10m adverse impact on EBITDA, the COVID-19 pandemic and ongoing challenges in the US retail generic sector.”

“On a constant currency basis, reported revenue was down 3%, reported EBITDA down 5% and underlying EBITDA down 10% excluding NEXTSTELLIS set up costs. Pleasingly, all segments other than the Generic Products segment contributed to EBITDA growth compared to the prior corresponding period (pcp).”

What’s next for Mayne Pharma?

One possible glimmer of hope for the Mayne Pharma share price is management’s positive view on the long term. This is thanks to its pipeline of products with large addressable markets.

Mr Richards said: “The Company has significantly strengthened its US dermatology pipeline in recent months signing four supply and distribution agreements with leading suppliers for eleven dermatology products which treat key skin conditions such as acne, psoriasis and rosacea. Our partnering success validates our unique go-to-market approach in dermatology which focuses on providing better outcomes for patients, prescribers, and specialty pharmacies.”

“All products have final FDA approval other than two which have tentative FDA approval. The two largest products with combined IQVIA sales of more than US$300m are expected to be meaningful contributors to our business this fiscal year given current market conditions and competitive dynamics. The Company continues to prosecute its other programs pending at the FDA including a generic version of Nuvaring, which is targeting an addressable market of US$680m.”

The company also expects its growth to be boosted by the successful commercialisation of Nextstellis in the US and Australia, the launch of more than a dozen dermatology and women’s health products in the US targeting markets with IQVIA sales of US$1.5 billion, the accelerating growth of Metrics Contract Services and International, and continued optimisation of its cost base.

Though, judging by the Mayne Pharma share price performance today, some investors aren’t sticking around to see if FY 2022 is a big improvement on the last few years.

The post Mayne Pharma (ASX:MYX) share price crashes 10% on $208.4m loss in FY21 appeared first on The Motley Fool Australia.

More reading

• ASX 200 drops, Afterpay jumps again, Credit Corp rises
• Why Bubs, Mayne Pharma, Paradigm, & PointsBet shares are tumbling lower
• Mayne Pharma (ASX:MYX) share price drops on class action

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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As many of you might know by know, the ASX is currently in the middle of a hectic earnings season this August. And while much of the attention is fixed on the big ASX blue chip shares, it’s also a good time to check in with some of the ASX’s most recent IPOs (initial public offerings).

Last week, we looked at how the inaugural earnings reports of two recent ASX IPOs – Airtasker Ltd (ASX: ART) and Doctor Care Anywhere Group plc (ASX: DOC) – were received by investors. Today, we’ll look at two additional ASX IPOs which have recently reported their first earnings to the markets.

Best & Less Group Holdings Ltd (ASX: BST)

Although Best & Less has been a staple retail name in Australia for decades, it has only recently made its ASX debut in its current form. Yes, Best & Less had its ASX IPO back in late July. In the month or so it has been on the ASX boards, Best & Less shares have performed exceptionally well, rising more than 17%.

This retailer reported its inaugural earnings for the 2021 financial year (FY21) just yesterday, and they make for some interesting reading. As my Fool colleague Brooke covered yesterday afternoon, Best & Less reported revenue growth of 6% over FY20 to $663.2 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at $71.6 million – up 165%. While net profit after tax was $47 million, up 191%.

The Best & Less share price has responded very positively today, up a healthy 2.18% at the time of writing to $2.81 a share.

Cobram Estate Olives (ASX: CBO)

Olive oil company Cobram is another recent addition to the ASX boards. Cobram only had its ASX IPO back on 11 August. And like Best & Less, it’s been going pretty well so far. Since its debut, Cobram shares have climbed a healthy 10.2%.

Cobram reported its first earnings report yesterday afternoon as well. Although total olive oil sales were flat year on year ($140 million for FY21, compared with $140.7 million for FY20), the company did generate $22.1 million in cash from operations, up from $13 million for FY20.

Cobram also reported $70.3 million in group EBITDA for FY21, which was up from $19.7 million the previous year.

Overall, the company was able to post a net profit after tax of $32.6 million, which was up substantially from FY20’s net loss of $32.7 million.

The Cobram share price hasn’t reacted to its earnings quite as optimistically as Best & Less though. Cobram shares are currently down 0.24% today to $2.06 a share.

The post These recent ASX IPOs have just reported for the first time. How’d they go? appeared first on The Motley Fool Australia.

More reading

• Best & Less (ASX:BST) share price slides despite record profit

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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The ClearVue Technologies Ltd (ASX: CPV) share price has shot up this week, posting gains of almost 25% for investors.

This follows the smart building materials company’s announcement on Wednesday that it had received a first order from a Japanese distributor.

At the time of writing, ClearVue shares are up 5.7%, trading at 37 cents.

What’s driving ClearVue shares higher?

In its release, ClearVue advised that Japanese greenhouse leader Tomita had placed an order for its solar photovoltaic (PV) glazing solution.

ClearVue signed an exclusive distribution agreement with Tomita in April for the sale and marketing of its product.

The company said the patented solution would be used in a greenhouse at a tourism eco-project in Japan.

In total, 187 ClearVue glazing panels will be installed, covering an area of around 333sq m. This will be deployed into a roof of a strawberry greenhouse which forms part of the Aqua Ignis Hot Springs project.

The advanced glass technology incorporates a clear lamination layer between glass panels that drives unwanted wavelengths of UV and IR light to solar PV cells. Located around the edge of an integrated glazing window unit, the solar PV cells are used to generate electricity.

The company expects that the PV glazing panels on the greenhouse will generate approximately 8,573kWh of renewable energy per year.

No doubt, investors are excited about the company’s latest developments, sending the ClearVue share price higher.

Management commentary

ClearVue executive chair Victor Rosenberg commented:

The Aqua Ignis project in Sendai is a great starting project for ClearVue distributor Tomita and it will provide invaluable insights into the installation and technical nuances of the ClearVue product before Tomita takes on larger scale greenhouse projects throughout Japan.

Additionally, the high-profile nature of the project will provide invaluable marketing and promotion for both Tomita and ClearVue, demonstrating not only the benefits of the ClearVue product but also its versatility in different application settings.

About the ClearVue share price

The ClearVue share price has surged more than 160% over the past 12 months.

Based on today’s price, ClearVue commands a market capitalisation of roughly $77.7 million, with about 210 million shares on issue.

The post Why the ClearVue (ASX:CPV) share price is soaring 25% this week appeared first on The Motley Fool Australia.

More reading

• These recent ASX IPOs have just reported for the first time. How’d they go?
• CV Check (ASX: CV1) share price gains on FY21 earnings
• Why is the Coles (ASX:COL) share price down 5% this week?
• Australian Finance Group (ASX:AFG) share price gains on FY21 profit boost
• Sonic Healthcare (ASX:SHL) share price hits record high at $43.43

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 CV Check Ltd (ASX: CV1) share price is in the green today after the company released its earnings for financial year 2021 (FY21). 

Right now, the CV Check share price is 17 cents, 3.03% higher than its previous close.

CV Check share price gains on $17.4 million revenue

Here’s how the credential verification platform provider performed through FY21:

• $17.4 million in revenue, 41% more than FY20’s revenue
• A comprehensive $926,616 loss, an improvement on the prior period’s $1.3 million loss

CV Check’s loss included the $733,082 it spent to acquire Bright People Technologies’ parent company.

Over FY21, the CV Check platform brought in $16 million of revenue, representing a 30% year-on-year growth rate. Additionally, the platform’s annual recurring revenue grew by 39% to $13.2 million. 

In the only quarter in which Bright People Technologies was part of the company, its platforms generated $1.4 million in revenue. Of that, $573,255 was software-as-a-service (SaaS) revenue. 

CV Check ended the year with a cash balance of $12.9 million.

What happened in FY21 for CV Check?

The financial year just been was a big one for CV Check and its share price.

The company agreed to purchase CI6, an entity that owns 100% of Bright People Technologies, in February. 

Bright People Technologies is a SaaS provider of workforce credentials and compliance software. The business has a small number of blue-chip clients, including BHP Group Ltd (ASX: BHP), Woodside Energy, and Cash Converters International Ltd (ASX: CCV).

CV Check completed a $10.5 million share placement to fund the acquisition. 

CV Check undertook work to develop and commence the rollout of automated verification processes in FY21. The company also focused on enhancing its security defences and protocols.

The Bright People Technologies acquisition was completed in the final quarter of FY21. The company has since integrated Bright People’s technical team into its own. 

What did management say?

CV Check’s chair Ivan Gustavino commented on the results driving the company’s share price today, saying:

I am proud to say that, emerging from an extremely challenging year in good shape, CV Check delivered solid achievements and is uniquely placed to build on its success. FY2021 was an immensely challenging year: The continued disruptive effects of the COVID-19 pandemic and government response measures presented challenges internally (in managing the effects on our own workforce) and externally (causing uncertainty in our markets). Those disruptive effects have not abated, and look set to continue into the current financial year. 

In the midst of that disruption, the company took on its own challenges as it embraced change — completing the acquisition of the business of Bright People Technologies Pty Ltd, embarking on an integration of the two businesses, merging its management structures, beginning a process of consolidating its technology platforms, and setting itself to become an international Reg Tech company…

Notwithstanding the width of the challenge thrown to it, the company has delivered on the goals set by the board: growing revenue and [annual recurring revenue] from the core CV Check platform business; maintaining transaction and SaaS revenue from the newly acquired BPT platforms; completing the first phases of the planned integration of the businesses; and planning for the medium to long-term consolidation of the technology stacks. 

What’s next for CV Check?

CV Check outlined a number of happenings those interested in its share price might want to watch out for.

The company’s key objective for FY22 is to introduce some of the CV Check platform’s thousands of corporate clients to the Bright People platform. It expects this will help grow its SaaS revenue.

Additionally, CV Check is on track to roll out enhanced monitored compliance features on Bright People’s platforms.

It also outlined some macro drivers that have boosted its performance so far. First is the shift to a digitally delivered service-based economy. The second is COVID-19, which has highlighted the need for companies to provide their services remotely.

CV Check share price snapshot

The CV Check share price has slipped 10% since the start of 2021. However, it is 88% higher than it was this time last year.

The post CV Check (ASX: CV1) share price gains on FY21 earnings appeared first on The Motley Fool Australia.

More reading

• CV Check (ASX:CV1) share price rockets 9% on business update

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 recommended CV Check 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 Coles Group Ltd (ASX: COL) share price is back where it started this month.

Despite a strong start to August, shares in the supermarket giant have slumped more than 5% since the start of this week.

Let’s take a look at what’s been moving the Coles share price.

Why is the Coles share price sinking?

There have been several catalysts that have attributed to a weaker Coles share price this week.

Most recently, the supermarket giant announced a restructuring of its refinancing package.

Coles announced that it had refinanced $1.3 billion of bank-financed debt into a 4-year Sustainability Linked Loan (SLL).

Under the new arrangement, the company’s debt will be linked to three sustainability targets.

These targets include reducing CO2 emissions, increasing the proportion of women in leadership roles and reduce waste sent to landfills.

According to Coles, the new arrangement is in line with the company’s ambition of becoming Australia’s most sustainable supermarket chain.

In addition, a strong full-year result from archrival Woolworths Group Ltd (ASX: WOW) also proved a dampener for the Coles share price.

Coles has also been on the receiving end of some unfavourable broker coverage.

According to a recent note from UBS, analysts retained a sell rating on the retailer.

The broker noted that, despite delivering full-year results in line with expectations, Coles may struggle to gain market share in the future.

How did Coles perform in FY21?

Despite a sell-off this week, the Coles share price received a boost last week after reporting a solid full-year result.

Highlights from the company’s FY21 report included;

• Sales revenue increased 3.1% to $38,562 million.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5.4% to $3,432 million.
• Net profit after tax up 7.5% to $1,005 million (compared to consensus estimates of $998.2 million).
• Fully franked final dividend of 28 cents per share. Resulting in a record total dividend of 61 cents per share, up 6.1% from FY20.

Snapshot of the Coles share price

Overall, the Coles share price has underperformed the broader market in 2021.

Shares in the retailer are down around 2% since the start of the year.

In comparison, the broader S&P/ASX200 Index (ASX: XJO) has risen more than 13% since the start of 2021.

The post Why is the Coles (ASX:COL) share price down 5% this week? appeared first on The Motley Fool Australia.

More reading

• How does the Woolworths (ASX:WOW) earnings result compare to Coles (ASX:COL)?
• Coles (ASX:COL) share price slides amid $1.3 billion sustainability refinancing
• Telstra (ASX:TLS) and this dividend share have been named as buys
• Why the Coles (ASX:COL) share price has underperformed the ASX 200 in the last year
• How does the Woolworths (ASX:WOW) dividend compare to its sector?

Motley Fool contributor Nikhil Gangaram 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 owns shares of and has recommended COLESGROUP DEF SET. 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 Australian Finance Group Ltd (ASX: AFG) share price is edging higher in late morning trade, up 0.84%, having earlier posted gains of 4%.

At time of writing, the Australian Finance Group share price is exchanging hands at $2.99 apiece.

Below we take a look at the ASX mortgage broking group’s full year financial results for the year ending 30 June, 2021 (FY21).

Australian Finance Group share price lifts on FY21 results

• Total revenue increased 11% year-on-year to $767.1 million
• Underlying net profit after tax (NPAT) of $49.6 million, up 37% from the $36.3 million reported in FY20
• Net cash from operating activities increased 45% to $58.6 million
• Declared a final dividend 7.4 cents per share, up 57% from FY20 final dividend

What happened during the reporting period for the company?

Australian Finance Group credited its 11% increase in revenue to settlement and loan book growth across its business.

The company reported a 28% increase in residential settlements to $43.6 billion. It said first home buyers and upgraders were driving the growth, powered by low interest rates, government stimulus and a better economic outlook.

AFG Securities settlements of $1.35 billion were roughly equal to the prior year, with the loan book increasing by 17% to $3.4 billion. The company said its combined residential and commercial loan book of $175.7 billion was up 8% from FY20.

Australian Finance Group’s broker numbers were also on the up, reaching more than 3,050 as at 30 June.

During the year, the company continued to roll out its new platform, CRM “built on enterprise-grade technology”. AFG said plans were underway for a staged migration of each broker across its network to the new platform.

In FY21, Australian Finance Group also acquired an 8% stake in neobank Volt. The company said that Volt’s innovative technology would help it deliver “streamlined digital solutions for our brokers and their customers”.

On the subject of environmental, social, and corporate governance (ESG) metrics, AFG advised it was making significant progress in its approach and reporting.

What did management say?

Commenting on the results, Australian Finance Group CEO David Bailey said:

This is a record profit for the company reflecting the hard work of our staff and our brokers who now count in excess of 3,050… This past year has once again shown the resilience of our business and the core role our brokers play in delivering a competitive lending market and a service sought after by Australians building wealth in the residential market and in business enterprises across the country.

Our brokers have experienced record demand for their services to Australian borrowers. Our core residential business increased by 28% this year to deliver $43.6 billion in settlements.

What’s next for Australian Finance Group?

Looking ahead, AFG said it was well-placed to continue delivering growth for its shareholders while offering choice and competition for Aussie mortgage customers.

As at 30 June, the company held cash and other financial investments of $282 million.

Bailey said AFG remained alert to the risks and challenges posed by the ongoing COVID-19 pandemic, but is confident the company was “well-equipped to respond”.

“As a major aggregator, AFG is well-placed to participate in the increased preference by Australian consumers to access home loan products through a broker,” he said.

The Australian Finance Group share price is up 56% over the past 12 months.

The post Australian Finance Group (ASX:AFG) share price gains on FY21 profit boost appeared first on The Motley Fool Australia.

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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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