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The Woolworths Group Ltd (ASX: WOW) share price is responding very positively to the company’s just-released FY2021 earnings report that we finally got a look at just before market open this morning.

At the time of writing, Woolworths shares are up 0.91% to $41.19 a share. So, for now at least, it’s a tick of approval from investors.

If you missed this morning’s earnings report, here’s a quick summary from my Fool colleague Kerry’s coverage earlier today:

• Group sales rose 5.7% to $67,278 million
• eCommerce sales surged 58.1% to $5,602 million
• Group earnings before interest and tax (EBIT) increased 13.7% to $3,663 million
• Group net profit after tax up 22.9% to $1,972 million
• Final dividend of 55 cents per share

All very healthy numbers, one could say.

However, Woolworths also announced a new development, one that could have lucrative consequences for all shareholders. The company also announced a $2 billion off-market share buyback program.

Share buyback programs are usually good news for existing shareholders. When a company buys back its own shares (and retires them), it reduces the total number of shares outstanding for a company. This tends to lead to higher share prices through the simple laws of supply and demand (less supply equals higher prices).

It also means that any future earnings and dividends will be higher on a per share basis, all other things being equal, seeing as there are fewer shares to divide the spoils between.

So the Woolworths buyback program will be an off-market one, meaning that existing shareholders will have the option to participate.

How will the Woolworths share buyback program work?

Here’s some of what Woolworths chair Gordon Cairns said in an explanatory letter released today:

The Buy-Back will be conducted through a tender process. Eligible Shareholders who choose to participate can offer to sell some or all of their Shares to Woolworths Group at:

• a discount between 10% to 14% (inclusive) at 1% intervals to the Market Price; or

• the Buy-Back Price, which is an election to sell your Shares at the price determined by Woolworths Group…

The off-market nature of the buyback means that Woolworths can make part of the buyback a capital return (of $4.31 a share) with the remainder of the buyback price consisting of a fully franked dividend for tax purposes.

This will have meaningful tax implications for shareholders who decide to participate. Here’s some more of what Woolworths had to say on that:

The Woolworths Group expects that for Australian tax purposes the Capital Component of the Buy-Back Price that you are paid for each Share bought back will be $4.31 and the remainder of the Buy-Back Price will be a fully franked dividend. 

The Buy-Back Price may be lower than the price at which you could sell your Shares on ASX, but your after-tax return may be greater because of your personal tax situation and the tax treatment of the Capital Component, the Dividend Component and the franking credits in your situation.

So that’s something for all Woolworths shareholders to consider today. But even if a shareholder doesn’t participate, they will still benefit from the program due to the reasons outlined above. Fewer shares mean existing positions become more valuable.

At the current Woolworths share price, the company has a market capitalisation of $52.22 billion, a price-to-earnings (P/E) ratio of 37 and a dividend yield of 2.44%.

The post Woolworths (ASX:WOW) share buyback: here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price gains on 23% profit surge
• Woolworths (ASX:WOW) share price on watch following FY21 results
• How did the Woolworths (ASX:WOW) share price perform last earnings season?
• How does the Woolworths (ASX:WOW) dividend compare to its sector?
• Woolworths (ASX:WOW) share price slides despite new Uber Eats trial

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 Clinuvel Pharmaceuticals Ltd (ASX: CUV) share price is gaining in early afternoon trade, up 4.76% to $29.70 per share at the time of writing.

Below we take a look at the ASX 200 biopharmaceutical company’s financial results for the year ending 30 June, 2021 (FY21).

Clinuvel share price gains on FY21 results

• Revenue and other income of $48.5 million, up from $33.9 million in FY20
• Net profit after tax (NPAT) increased to $24.7 million from $15.1 million in FY20
• Basic earnings per share (EPS) of 50 cents, up from 31 cents the prior year
• Declared a dividend of 2.5 cents per share (cps), unfranked, the same as in FY20

What happened during the reporting period for Clinuvel?

In FY21, Clinuvel recorded its fifth consecutive year of positive cashflow, revenues and profit.

With an eye on growth, total expenses of $22.7 million were maintained, roughly in line with FY20’s $22.4 million.

Over the course of the financial year, the company expanded its commercial distribution of its leading drug candidate SCENESSE in Europe and the United States. SCENESSE is intended to treat erythropoietic protoporphyria, a rare, genetic metabolic disorder.

Clinuvel also progressed with its research and development of other pharmaceuticals in its pipeline, being developed to treat a range of severe disorders.

There was also progress on the development of various non-prescription, dermatocosmetic products for people at high risk of exposure to ultraviolet (UV) and High Energy Visible (HEV) light.

The company had cash reserves of $82.7 million as at 30 June.

What did management say?

Commenting on the results, Clinuvel’s chief financial officer Darren Keamy said:

The result has been driven by strong patient demand in Europe and in the USA, despite a challenging operating environment.

The progress in the US in the first full year of commercial operations is ahead of our planning, with over 40 Specialty Centers trained and accredited to administer SCENESSE and over 60 national and state private insurers reimbursing EPP patients’ treatment.

Our US roll out, combined with ongoing demand in Europe, has helped deliver strong growth in revenues with only a relatively modest increase in overall expenses.

What’s next for Clinuvel?

Looking ahead, Clinuvel said it’s “committed to growing its commercial operations in Europe, the USA, Israel, and other countries”.

The company is continuing to develop both prescription and non-prescription products to treat a range of medical issues, focused on repairing DNA damage.

It said its new divisional structure supports its growth plans. The new structure consists of: Pharmaceuticals; Healthcare Solutions; Communications, Branding & Marketing; and Manufacturing. Clinuvel says the new divisional structure is “underpinned” by its Research, Development & Innovation Centre, located in Singapore.

The Clinuvel share price is up 26% over the past 12 months.

The post Clinuvel (ASX:CUV) share price gains 5% on FY21 profit boost appeared first on The Motley Fool Australia.

More reading

• Viva Leisure (ASX:VVA) share price sinks 7% on capital raising efforts
• If you invested $1,000 in Sydney Airport (ASX:SYD) shares a decade ago, here’s what it would be worth now
• Australian Clinical Labs (ASX:ACL) share price soars 9% after smashing profit forecast
• People Infrastructure (ASX:PPE) share price struggling to hold gains following record FY21 result
• Openpay (ASX:OPY) share price slumps as margins narrow

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 Viva Leisure Ltd (ASX: VVA) share price is nearing its 52-week low today. This comes after the health club operator provided the market with an update to its latest capital raise.

At the time of writing, Viva Leisure shares are down a sizable 7.60% to $1.58.

What did Viva Leisure announce?

In a statement to the ASX, Viva Leisure announced it has successfully completed its $11.7 million (before costs) institutional placement.

Offered at a price of $1.55 per share, the placement received strong support from both new and existing institutional investors. This initially represented a discount of 9.4% to the last closing price of $1.71 on 24 August. However, after today’s steep drop in the Viva Leisure share price, the offer reflects a slight discount of just under 2%.

The company advised it will use the proceeds to strengthen its balance sheet as well as pursue acquisition opportunities.

The newly created ordinary shares will be issued on or around 6 September.

How did Viva Leisure perform for FY21?

Last week, Viva released its full-year results for the 2021 financial year highlighting significant growth across the board. Here are some of the key metrics:

• Direct members soared 33.8% to 126,006;
• Locations increased by 45.5% to 115;
• Revenue jumped 104.8% to $83.72 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 97% to $11.95 million; and
• Net profit after tax lifted 4.6% to $0.9 million.

What happened in FY21 for Viva Leisure?

Viva Leisure reported that membership retention and enrolment momentum exceeded historical patterns when its health clubs were open. However, stop-start lockdowns caused disruption to enrolment momentum and created additional costs to re-open and re-establish the previous momentum.

Throughout the entire financial year, the company’s entire facilities were open for 2 months without trade or restriction.

Nonetheless, there were 11 months of positive net member growth for the business.

In addition to the results, Viva Leisure also increased its portfolio, acquiring 21 greenfield locations and 15 acquisitions. When combining this with Viva Leisure and the Plus Fitness network, there is a total of 309 operating locations.

Management commentary

Viva Leisure CEO and managing director Harry Konstantinou commented on the outstanding achievement:

Despite a difficult year where all our facilities across Australia had just two months of being open at the same time, I am proud of my team for managing to achieve an increase in all key metrics being Members, Locations, Revenue, EBITDA and NPAT.

Outlook for Viva Leisure in FY22?

The current COVID-19 lockdown has again significantly impacted Viva Leisure operations for the first two months of FY22.

As such, it is estimated July and August will reflect a decline in revenue of roughly $6.9 million. Furthermore, EBITDA is forecasted to be impacted by $4.2 million.

The company introduced a ‘wait and see’ approach to preserve cash reserves as much as possible. Future roll-outs and acquisitions have been currently frozen until further notice.

Viva Leisure share price snapshot

Over the past 12 months, Viva Leisure shares have fallen more than 40%, with year-to-date down 45%.

Viva Leisure presides a market capitalisation of roughly $131.9 million, with approximately 81 million shares on its registry.

The post Viva Leisure (ASX:VVA) share price sinks 7% on capital raising efforts appeared first on The Motley Fool Australia.

More reading

• Clinuvel (ASX:CUV) share price gains 5% on FY21 profit boost
• If you invested $1,000 in Sydney Airport (ASX:SYD) shares a decade ago, here’s what it would be worth now
• Australian Clinical Labs (ASX:ACL) share price soars 9% after smashing profit forecast
• People Infrastructure (ASX:PPE) share price struggling to hold gains following record FY21 result
• Openpay (ASX:OPY) share price slumps as margins narrow

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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As you may or may not know, we are currently in the middle of earnings season here on the ASX. One of the companies that reported its FY21 numbers last week was Sydney Airport Holdings Pty Ltd (ASX: SYD). Today, the Sydney Airport share price is sitting at $7.73 a share, down 0.52% for the day. Since reporting its earnings on 20 August, Sydney Airport shares have… pretty much gone nowhere. The airport closed at $7.72 a share the day before its earnings were released last week. Today, they’re at $$7.72.

But Sydney Airport is an old company with a long presence on the ASX boards. So today, let’s check out how much $1,000 would be worth today if you invested it in Sydney Airport shares a decade ago.

So exactly 10 years ago, on 26 August 2011, the Sydney Airport share price closed at a flat $3 a share. That means $1,000 would have bought you 333 SYD shares, with a dollar left over, at this share price.

Today, those 333 shares would be worth roughly $2,570.76 on the current share price. That represents a gain of around 157%. Not a bad return!

How did dividends contribute to the Sydney Airport share price returns?

But, of course, Sydney Airport has also paid out quite a few dividends over the past decade as well. Those are very important to a shareholders’ overall return.

So Sydney Airport paid a biannual dividend distribution every year from 2011 all the way to 2019. The company did not declare a dividend in 2020 and has not in 2021 so far.

A Sydney Airport shareholder who picked up 33 shares in August 2011 would have received a total of 17 dividend payments over this period, starting from December 2011’s dividend of 10 cents per share, and ending with 2019’s dividend of 19.5 cents per share. Over the past decade, our shareholder would have received, by this writer’s estimation, approximately $2.445 in dividend distributions per share.

If this investor bought 333 shares, this would amount to a total of $814.19 in dividend income (assuming no reinvestments). Add that to our $2,570.76 worth of SYD shares, and we get a final figure of $3,384.95. That’s an overall return of 238.83%.

So over the past decade, an investor was able to turn $1,000 worth of Sydney Airport shares (well, technically $999) into $3,384.95 if all they did was hold the shares and collect the dividends every 6 months.

That figure won’t be perfect. There will be other considerations like franking credits, capital returns, foreign income, and some other quirky figures Sydney Airport’s rather unique corporate structure has allowed that haven’t been considered. But this is still a fairly accurate estimation of what Sydney Airport investors would have enjoyed over the past decade.

At the current Sydney Airport share price, the company has a market capitalisation of $20.81 billion.

The post If you invested $1,000 in Sydney Airport (ASX:SYD) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

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• How do the Sydney Airport (ASX:SYD) results compare to Auckland Airport?
• The ASX reporting wrap-up: Cochlear, Sydney Airport, TPG

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 Australian Clinical Labs Ltd (ASX: ACL) share price has leapt into the green on Thursday as the pathology services company reported its FY21 earnings.

Australian Clinical Labs shares are now changing hands at $4.55 apiece, up 8.3% after hitting an intraday high of $4.63 this morning.

Let’s investigate further.

Australian Clinical Labs share price jumps on earnings boost

Highlights from the company’s FY21 results include:

• Australian Clinical Labs successfully listed on the ASX in May 2021
• Outperformed prospectus revenue forecasts by 4.2% at $674 million
• Earnings before interest, tax, depreciation and amortisation (EBITDA) came in 11% ahead of forecasts at $270 million and grew 98.4% year on year.
• Net profit after tax (NPAT) of $88.7 million which was 19.2% in front of the prospectus forecast, and 6% ahead of (previously) upgraded guidance. This is also a 659% year on year increase.
• Decreased net debt from $93.3 million to $64.1 million
• Cash EBITDA to operating cash flow conversion of 101.4%, with “pro forma cash flow” of $97.2 million.

What happened in FY21 for Australian Clinical Labs?

Australian Clinical Labs completed its initial public offering (IPO) on the ASX on 14 May 2021, and has “outperformed pro forma prospectus” earnings forecasts.

The company recorded revenue of $674 million alongside EBITDA of $270 million. These results came in around 4% and 11% ahead of forecasts outlined in its prospectus.

Moreover, it smashed NPAT prospectus forecasts by almost 20%, recognising around $89 million for FY21. This figure also fell within the upper ranges of previously upgraded guidance released back on 3 June. The NPAT figure signifies an approximate 660% year on year increase.

Australian Clinical Labs’ advised that its FY21 non-COVID revenue growth was 6.3% higher than the year prior. Non-COVID sales growth normalised by the second half of FY21, increasing 14% compared to FY20.

The company also strengthened its balance sheet by reducing net debt from $93 million to just over $64 million through the year.

In addition, the company commissioned a new laboratory in Queensland, marking its expansion into the sunshine state. This coincided with the acquisition of SunDoctors, a “leading skin cancer clinic business in Australia”.

Finally, Australian Clinical Labs “delivered excellent turnaround times on all testing”, even when demand increased suddenly.

What did management say?

Australian Clinical Labs CEO Melinda McGrath said:

The commitment and dedication of our 2,800 staff has been on display this year as ACL continues to play a central role in Australia’s COVID-19 response which was at times challenging for everyone in the organisation, but particularly for our frontline staff managing testing sites, and I take this opportunity to thank each and every one
of them for their commitment and compassion to serving their communities.

Touching on the company’s growth vision, McGrath added:

With a well-defined growth strategy and predictable and consistent long-term growth drivers supporting the $5.8 billion Australian pathology market, excluding COVID-19, we are confident in our ability to continue to deliver solid results in FY22 and beyond.

What’s next for Australian Clinical Labs?

Acknowledging “significant volatility” in the market, the company upgraded its FY22 guidance based on trading to date in FY22.

As such, guidance for the first half of FY22 includes total revenue between $392 million to $375 million, calling for an 18% – 22% upgrade to the prospectus forecast.

It also sees NPAT between the range of $48 million to $53 million, a 109% to 130% upgrade on the prospectus forecast.

The Australian Clinical Labs share price has gained 13% since listing, slightly behind the S&P/ASX 200 Index (ASX: XJO)’s return of about 14% over the same period.

The post Australian Clinical Labs (ASX:ACL) share price soars 9% after smashing profit forecast appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 People Infrastructure Ltd (ASX: PPE) share price has faded from its morning gains after the company released its FY21 full-year results.

Shares in the staffing business rallied 8.85% within the first few minutes of trade to a high of $4.55.

At the time of writing, the People Infrastructure share price is up 3.11% to $4.31.

People Infrastructure share price rallies on strong growth in FY21

People Infrastructure grew considerably in FY21, both organically and via acquisitions. Some key highlights include:

• Revenue rose 19% to $444 million
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 33% to $38 million
• Underlying net profit after tax and amortisation lifted 37% to $25 million
• Final fully franked dividend of 6 cents per share

What happened to People Infrastructure in FY21?

The People Infrastructure share price has been a steady performer in 2021, up 20% year-to-date.

The company completed a number of acquisitions throughout the year to drive greater staffing sector diversification and accretive growth. Companies acquired in FY21 include:

• Ecareer & Illuminate (IT) in December 2020
• Swingshift (Healthcare) in March
• Techforce (Industrial) and Vision Surveys (Op services) in June

All divisions, both organic and acquired, made strong contributions to growth. The company said that in the final quarter of FY21, all divisions were either at or exceeding record profit contribution.

In relation to recent COVID-related restrictions and lockdowns, the company said they impact a portion of clients and in different ways. Some clients have seen increased demand for new services while other clients have seen business activity restricted. Overall, the company said the recent impact is far smaller than the initial wave of COVID-19.

Management commentary

People Infrastructure CEO Declan Sherman commented on the record results, saying:

People Infrastructure confronted a number of challenges in FY21 due to the impact of COVID-19. The business has shown tremendous resilience to bounce back over the last 12 months. As a result, we are pleased to announce a significant increase in revenue and earnings.

The business demonstrated a steady increase in billed hours in the second half versus the first half and a significant increase in permanent billings in the second half versus the first half. This was consistent across all divisions and as a result the company is starting FY22 in a very strong position.

Despite the near-term volatility and impact of COVID-19, Sherman remains confident in the company’s ability to navigate through uncertainty.

Any short term impacts on our clients are significantly mitigated by our regional and product diversity.

Importantly, the outlook for the employment market continues to be positive in the sectors that we service and we look forward to continuing to work with clients to manage their problems around staffing shortages.

What’s next for People Infrastructure?

Looking ahead, People Infrastructure flagged that there may be some short term volatility due to NSW and Victorian lockdowns. But this could also be mitigated by its regional and industry diversification.

Management said that the company would continue to be on the lookout for acquisition opportunities in staffing and managed services to drive geographic spread and/or further expand its service offering.

The People Infrastructure share price will go ex-dividend on Friday, 3 September for a 6 cents per share dividend.

The post People Infrastructure (ASX:PPE) share price struggling to hold gains following record FY21 result appeared first on The Motley Fool Australia.

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• St Barbara (ASX:SBM) share price falls 3% on $177 million loss
• Tyro (ASX:TYR) share price lifting off on record FY21 results
• Woolworths (ASX:WOW) share price gains on 23% profit surge

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. owns shares of and has recommended People Infrastructure Ltd. The Motley Fool Australia has recommended People Infrastructure 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 Openpay Group Ltd (ASX: OPY) share price is slumping lower on Thursday afternoon after the buy now, pay later (BNPL) group’s full-year results.

Openpay share price slumps as transaction margins narrow

Shares in the BNPL group are down more than 5% at the time of writing after releasing its results for the year ended 30 June 2021 (FY21). Some of the key takeaways from this morning include:

• Active merchants up 77% on the prior corresponding period (pcp) to 3,800
• Active customers up 69% on pcp to 541,000
• Total transaction value (TTV) up 77% on pcp to $339 million
• Revenue up 44% on pcp to $26 million
• Net transaction loss (NTL) flat at 2.3% of TTV
• Net transaction margin (NTM) down 190 basis points to 0.6%

However, the headline growth figures weren’t enough to stop the Openpay share price from slumping lower today.

What happened in FY21 for Openpay?

The BNPL group described FY21 as a “transformative” year. Openpay reported strong TTV growth thanks to increasing active merchant numbers. Openpay also announced the acquisition of UK-based Payment Assist which is expected to close in 1H FY22.

The Aussie company ventured into the $5.5 trillion US BNPL market via partnerships with Worldpay from FIS and ezyVet. The group is preparing to start transactions in the United States in early October 2021.

The Aussie BNPL group reported strong performance across Australia and New Zealand with growth in active merchants, customers and plans during the year.

However, the Openpay share price has been under pressure and remains down 69% in the past 12 months.

What did management say?

Openpay Managing Director and CEO, Michael Eidel, commented:

FY21 was a transformative year for Openpay, with many significant strategic and operational achievements that set us up to achieve our objectives of sustainable growth and mid-term profitability.

We have succesffuly transformed the business to become a truly diversified, global payments fintech, well beyond our great Business to Consumer (B2C) BNPL offering and origins, and precisly as described in our long-term vision and strategy.

What’s next for Openpay and its share price?

The Openpay share price has been smashed despite headline growth figures as its transaction margin narrowed sharply in FY21. The Aussie BNPL did not provide FY22 guidance in today’s results update.

Shares in the BNPL group are down 40.9% in 2021 with a market capitalisation of $148.3 million.

The post Openpay (ASX:OPY) share price slumps as margins narrow appeared first on The Motley Fool Australia.

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

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) appears to have run out of steam and is tumbling lower. The benchmark index is currently down 0.5% to 7,496.2 points.

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

A2 Milk disappoints again

The A2 Milk Company Ltd (ASX: A2M) share price is sinking on Thursday after it delivered a full year result at the very low end of its downgraded (four times) guidance range. The infant formula company reported a 30.3% decline in revenue to NZ$1.21 billion and a 77.6% fall in EBITDA to NZ$123 million. Management also ruled out a capital return after teasing one earlier this year and warned that FY 2022 would be challenging.

Appen sinks on half year results

The Appen Ltd (ASX: APX) share price is crashing lower after the release of its half year results. For the first half of FY 2021, Appen reported a 2% decline in revenue to US$196.6 million and a 14.3% fall in EBITDA to US$27.7 million. While the latter was a touch ahead of the US$27million analysts at Citi were expecting, the broker noted that its estimate was ~20% lower than consensus estimates. Not even news that the company is acquiring location data provider Quadrant has saved its shares.

Flight Centre higher despite loss

The Flight Centre Travel Group Ltd (ASX: FLT) share price is pushing higher today despite recording another large loss in FY 2021. For the 12 months ended 30 June, the travel agent reported a 74.2% decline in total transaction value (TTV) to $3,945 million and an underlying loss after tax of $364 million. However, management’s belief that it can reach profitability in FY 2022 appears to have boosted its shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Blackmores Limited (ASX: BKL) share price with an 8% gain. This follows the release of the health supplements company’s full year results. The worst performer has been the Appen share price with a 19% decline following its half year results release.

The post ASX 200 midday update: A2 Milk and Appen sink, Flight Centre rises appeared first on The Motley Fool Australia.

More reading

• Blackmores (ASX:BKL) share price edges lower despite profit surge
• A2 Milk (ASX:A2M) share price crashes 10% on disappointing FY22 outlook
• Appen (ASX:APX) share price tanks after 55% profit fall
• Flight Centre (ASX:FLT) share price on watch after $364 million loss in FY21
• A2 Milk (ASX:A2M) share price on watch after 79% profit decline and weak outlook

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 shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Blackmores Limited. The Motley Fool Australia has recommended A2 Milk and Flight Centre Travel 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 St Barbara Ltd (ASX: SBM) share price is slipping today following the release of the company’s financial year 2021 (FY21) results.

Right now, the St Barbara share price is trading at $1.54, 2.53% lower than yesterday’s close.

St Barbara share price slumps on 26% drop in profits

Here are the key points from the gold mining company’s performance through FY21:

• Statutory loss of $177 million, down from FY20’s $128 million profit.
• Revenue of $740 million, down 14% on that of FY20.
• Underlying profit of $81 million, 26% less than that of FY20.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $63 million, down from EBITDA of $338 million in FY20.
• $227 million cash flow from operating activities, down 19%.
• 2 cent final dividend.

St Barbara’s drop in revenue was a result of lower production at its Leonora and Simberi projects.

Its Atlantic operations experienced a $248 million impairment loss.

Over FY21, St Barbara’s total production dropped to 327,662 ounces of gold, that’s down from FY20’s production of 381,887 ounces.

The company’s gold sales amounted to 332,786 ounces, down from FY20’s 381,105 ounces.

St Barbara’s realised average gold price was $2,215 per ounce, 2.2% higher than that of FY20.

The company’s all-in sustaining cost (AISC) was $1,616 per ounce, 18% less than the previous financial year.

The miner ended the period with $133.3 million in cash and $109.2 million of interest-bearing liabilities.

What happened in FY21 for St Barbara?

Here’s some of what impacted the St Barbara share price in FY21:

Production from Leonora was lower following difficulties with ore delivery in the September quarter. Additionally, a seismic event at Leonora’s Gwalia underground mine caused a fall in ground which ultimately resulted in lower production for FY21.

The Leonora operations brought in $329 million of sales revenue in FY20, down from $355 million in FY20. Gold sales of 150,797 ounces were attributable to the mine.

Production at St Barbara’s Simberi operation was suspended in the final quarter after a fatality at the site. On 21 May, a truck driver at Simberi was killed when their truck travelled over a safety berm and fell around 40 metres.

St Barbara is providing assistance to the employee’s family and counselling support for the Simberi team.

Simberi brought in $204 million of sales revenue, down from $238 million in FY20. The operation saw 82,013,000 ounces of gold sold.

Finally, total gold sales revenue from St Barbara’s Atlantic operations was $205 million from 99,976 ounces.

St Barbara also released increased ore reserves and mineral resource statements this morning.

The company stated its ore reserves increased by around 4% to 6.2 million ounces of contained gold, net after depletion. Its mineral resources increased by around 13% to 13.1 million ounces of contained gold, net after depletion.

Resource extension drilling resulted in an increase to Gwalia’s mineral resources and ore reserves, while a review of material type models resulted in an increase in Simberi’s reserves.

What did management say?

St Barbara’s managing director and CEO Craig Jetson commented on some of the news:

Today St Barbara announces increases in both our group ore reserves and mineral resources as we focus on ensuring mine lives are extended beyond the next 10 years at each of our three operations.

What’s next for St Barbara?

Investors will be keeping an eye on the St Barbara share price moving forward after the company provided some guidance for FY22.

St Barbara forecasts its FY22 gold production will be between 305,000 and 355,000 ounces at an AISC of between $1,710 and $1,860 per ounce.

That guidance includes the latest mine plan at the Atlantic operations, which forecast lower-than-expected ore grades. It also includes the disruption to production at the Simberi operations and 10,000 ounces of production at Leonora operations from ore purchased from Linden Gold Alliance.

As Simberi’s processing facility is expected to restart in the second quarter of FY22, St Barbara has forecast its consolidated gold production will be marginally higher in the second half of FY22.

St Barbara share price snapshot

The St Barbara share price has slipped by around 37% year to date. It is also around 53% lower than it was this time last year.

The post St Barbara (ASX:SBM) share price falls 3% on $177 million loss 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 Tyro Payments Ltd (ASX: TYR) share price is lifting off this morning, up 6% to $3.80 per share.

This follows on the ASX payment solutions company’s financial results for the year ending 30 June (FY21), released today.

Tyro share price boosted on record FY21 results

• Record $25.5 billion in transactions processed by Tyro merchants, an increase of 26% from $20.1 billion reported in FY20
• Revenue increased 13% year-on-year to $238.5 million
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $14.2 million, compared to a $4.4 million loss in FY20
• Statutory net loss after tax of $29.8 million, compared to a net loss of $38.1 million in FY20
• $172.8 million in cash and financial investments on the balance sheet

What happened during the reporting period for Tyro Payments?

Tyro reported that its record high $25.5 billion in transactions in FY21 were processed on behalf of more than 58,000 merchants. The company’s gross profit hit an all-time high of $119.4 million.

The payments company managed to achieve this despite rolling COVID-19 lockdowns impairing many of its core customers, especially those in the retail, hospitality and health sectors.

As part of its growth strategy, Tyro acquired health fintech Medipass in May. In June it completed its merchant acquiring alliance with Bendigo Bank. This alliance has added some 18,500 Bendigo Bank merchants to Tyro’s merchant portfolio. The company estimates this will add an annualised transaction value of approximately $5 billion.

What did management say?

Commenting on the results, Tyro’s CEO, Robbie Cooke said:

We are executing against our strategy of ‘build’, ‘buy’, ‘invest’ and ‘partner’ as outlined in our 2019 prospectus prior to listing on the ASX and the business outcomes delivered in FY21 provide us with unique opportunities to accelerate growth.

Our combination with Medipass is a significant step in building out our core health vertical and is consistent with our strategy to extend our offering through acquisition where there is a distinct opportunity to gain scale and to enhance our position in a key vertical.

Our alliance with Bendigo Bank is an exciting combination of Australia’s fifth biggest retail bank with the fifth largest merchant acquiring bank. Partnering with Bendigo Bank sees Tyro’s leading proprietary payments platform made available to Bendigo Bank’s current and future business customers – giving them access to more features, more payment options and seamless integrations to more than 300 point of sale systems.

What’s next for Tyro Payments?

Looking ahead, the company said that future COVID-19 lockdowns remain unpredictable. However, it noted that it’s seen businesses rebound quickly over the past year whenever lockdowns lifted.

Tyro intends to continue rolling out new products and features to build out its payments platform.

According to Cooke, “Products such as the Tyro Go terminal will open up new verticals (trades and micro merchants for example) and provide a ‘queue busting’ solution for larger retailers.”

Tyro will also continue to pursue attractive acquisitions, large or small, Cooke said, to “gain scale, leverage our platform or capabilities, enhance our market position or supplement our ecosystem”.

The Tyro share price is up 17% over the past 12 months.

The post Tyro (ASX:TYR) share price lifting off on record FY21 results appeared first on The Motley Fool Australia.

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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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