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The HUB24 Ltd (ASX: HUB) earnings result has lit a fire under the investment advice company’s share price. HUB24 shares rocketed more than 8% higher on Tuesday after the company announced a 53% jump in full-year profits.

Investors may be curious how today’s strong earnings result compares to some of HUB24’s peers. Let’s take a look at how it stacks up against rival platform provider Netwealth Group Ltd (ASX: NWL).

How do the HUB24 earnings compare to Netwealth?

In case you missed it, here are a few of the key takeaways from HUB24’s Tuesday update:

• Revenue up 34.4% on FY2020 to $110 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 47% to $36.2 million
• Funds under administration (FUA) up 237% to $58.6 billion
• A 5.5 cents per share fully franked final dividend, meaning the full-year dividend increased 43% to 10 cents per share.

Those impressive figures were enough to send the HUB24 share price soaring higher on Tuesday. In contrast, Netwealth shares finished the day only 0.78% higher following their rival’s strong results.

It’s something of a double whammy for Netwealth, after its share price slumped 5% following its own FY21 earnings update last Wednesday.

Here’s a quick summary of some of Netwealth’s key figures for FY2021:

• Total income up 17% from FY2020 to $144.9 million
• Platform revenue up 17% to $142 million
• EBITDA up 19% to $79.3 million
• Funds under administration (FUA) up 49.6% to $47.1 billion
• 9.5 cents per share fully franked final dividend, meaning a full-year dividend increase of 26.3% to 18.6 cents per share.

At first glance, Netwealth and HUB24’s earnings don’t look too dissimilar. However, it is a tale of two very different sets of expectations as HUB24 shares surged and Netwealth’s valuation slid lower.

Perhaps unsurprisingly, both company’s executives were keen to tout themselves as the leading investment advice platform in their respective releases.

HUB24 managing director Andrew Alcock had this to say after his company’s earnings result:

I am proud that HUB24 has been recognised as Australia’s Best Platform Overall with the highest level of adviser satisfaction.

Meanwhile, Netwealth’s joint managing directors Michael and Matthew Heine said:

We continue to gain industry recognition as the leading specialist advice platform provider.

Foolish takeaway

Both wealth management platform providers posted significant funds under administration growth throughout the year.

However, HUB24 earnings received a better response from investors with the company’s shares surging more than 8% today. They closed the day 7.43% higher at $27.90.

The post How does the HUB24 (ASX:HUB) earnings compare to Netwealth? appeared first on The Motley Fool Australia.

More reading

• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• HUB24 (ASX:HUB) share price gains on 43% bump to dividend
• Why the Netwealth (ASX:NWL) share price is up 9% on Thursday
• Here are the top movers on the ASX 300 today
• Why Bapcor, BHP, CSL, & Netwealth shares are tumbling today

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. owns shares of and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Hub24 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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Today, the S&P/ASX 200 Index (ASX: XJO) moved higher led by energy shares. The benchmark index finished 0.22% higher to 7,506.5 points. ASX-listed oil and gas companies were solid performers, helping pull the benchmark ahead.

However, the question is: which shares from the top 200 delivered the most green on the ASX today? Here are the ten stocks that delivered the biggest gains:

Top 10 ASX 200 shares countdown today

Looking at the top 200 listed companies, Uniti Group Ltd (ASX: UWL) was the biggest gainer today. Shares in the telecommunications company increased 9.16% after revealing a record full-year result. Find out more about Uniti Group here.

The next best performing ASX share out of the top 200 today was Event Hospitality and Entertainment Ltd (ASX: EVT). The tourism and event company’s shares climbed 7.09% to $14.19 as vaccination numbers increase across Australia. Uncover the latest Event Hospitality and Entertainment information here.

Today’s top 10 biggest gains were made in these ASX 200 shares:

ASX-listed company	Share price	Price change
Uniti Group Ltd (ASX: UWL)	$4.29	9.16%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$14.19	7.09%
Scentre Group (ASX: SCG)	$2.72	6.67%
Flight Centre Travel Group Ltd (ASX: FLT)	$15.13	6.03%
Qantas Airways Limited (ASX: QAN)	$4.63	5.71%
Vicinity Centres (ASX: VCX)	$1.665	4.72%
Ampol Ltd (ASX: ALD)	$27.36	4.35%
The Star Entertainment Group Ltd (ASX: SGR)	$3.76	4.16%
Corporate Travel Management Ltd (ASX: CTD)	$22.10	4.15%
Regis Resources Ltd (ASX: RRL)	$2.565	3.85%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher
• Event (ASX: EVT) share price soars 10% to a 52-week high
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• Energy sector leading the ASX 200 shares on Tuesday
• ASX 200 midday update: Kogan crashes, Nanosonics rockets

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Uniti 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 QBE Insurance Group Ltd (ASX: QBE) share price has been among the best performers on the ASX 200 in 2021.

Since the start of the year, the insurance giant’s shares have risen just over 40%.

Can the QBE share price keep on rising?

The good news for shareholders is that one leading broker still believes the QBE share price can keep rising from here.

According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $13.41 price target on its shares.

Based on the current QBE share price of $12.05, this implies potential upside of 11% over the next 12 months before dividends.

Furthermore, Goldman is forecasting partially franked dividends per share of 37 cents in FY 2021 and then 58 cents in FY 2022. This represents yields of 3.1% and 4.8%, respectively, over the two financial years.

What did the broker say?

Goldman was very pleased with QBE’s performance during the first half of FY 2021 and notes that it delivered a result ahead of its expectations.

It commented: “QBE’s 1H21 cash NPAT of US$467mn was 41% ahead of our US$330mn estimate. DPS of A11c was however below our A19c estimate (interim payout ratio of 27%) while the balance sheet remains in good shape, with the PCA ratio at 1.73x (GSe 1.70x) and gearing at 31.1%.”

Overall, the broker believes its headline earnings are now representing underlying momentum. As a result, its analysts have upgraded their earnings estimates for the coming years.

It explained: “On balance, we upgrade our FY21-FY23 cash EPS by +13%/+5%/+3%, largely a function of reduced COVID costs and 1H releases in FY21, though stronger growth and margin in FY22/FY23.”

“We note QBE formally flagged an intention to increase growth asset exposure in its investment portfolio over the medium term. With excess capital seemingly earmarked for growth currently, we have not yet modelled any re-weighting, though note a shift from the current 7% growth asset mix to the 15% ceiling at current FUM (and a 50bps running yield) would equate to a normalised annualised NPAT uplift of c.US$100m,” it added.

All in all, the QBE share price may be smashing the market this year, but this leading broker believes it could continue doing so over the next 12 months.

The post Top broker says QBE (ASX:QBE) share price is a buy appeared first on The Motley Fool Australia.

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• 10 ASX shares we’re overweight in right now: fund
• Leading brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: New records just keep coming for the ASX 200
• 3 of the best ASX results from week two of reporting season
• These were the best performing ASX 200 shares last week

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 Brickworks Limited (ASX: BKW) share price has risen by 33% over the last year, beating the S&P/ASX 200 Index (ASX: XJO) return of 22.5%.

A lot has happened over the past year. The world learned of the efficacy/effectiveness of the COVID-19 vaccines that are now going into arms around the world. That may or may not explain some of the returns of the ASX 200 in the last 12 months, but each individual business has its own story.

What is influencing the Brickworks share price?

Company announcements and profit changes can have an influence on shorter-term and longer-term movements of the valuation of a business.

Brickworks runs a slightly different financial calendar to most businesses on the ASX. So it won’t be telling investors its FY21 result this month. But earlier this month Brickworks did provide an earnings update.

It announced that COVID-19 was impacting operations in both NSW and Queensland. Brickworks said that in June and early July its brick sales in NSW were approximately in line with local production capacity. However, dispatches were rapidly reduced by 80% during the pause in construction activity across Sydney in late July.

The partial re-commencement of construction activity in August saw brick sales improve, but were still at 50% of pre-lockdown levels. This caused storage yards to reach full capacity, leading the business to temporarily reduce production at two of its five brick kilns. Significant production volume is/was being sent south to meet the strong demand in Victoria.

Capital projects are also being impacted, such as its new masonry plant at Oakdale East where the commissioning process is being “severely disrupted”, with several critical technicians being stranded overseas because of a lack of inbound flights.

Development activity within the property trust is also being affected, with various Oakdale Estates being impacted by closures and reduced workforce numbers.

The Brickworks share price has fallen 6% since this announcement.

Where’s the positive news?

It’s not all COVID-19 negativity for Brickworks. These impacts in NSW were right at the end of FY21, so the impact in the previous financial year was immaterial. FY21 earnings before interest and tax (EBIT) is expected to be around 35% higher than FY20.

Brickworks also said that North American trading in July was slightly softer than forecast, so FY21 EBIT will be slightly below the prior year. But Brickworks has recently bolstered this region with the acquisition of the largest independent brick distributor in the USA, with the purchase of certain assets from Southfield Corporation, including Illinois Brick Company (IBC), for US$51.1 million.

IBC has 17 showrooms and distribution outlets across Illinois and Indiana. It did this because it will add scale and fills a gap within Glen Gery’s existing distribution network. It also underpins significant sales volume. Management believe there are significant growth opportunities and cost synergies available to Brickworks. It’s expecting to add 2% to earnings per share (EPS) in year one, excluding cost synergies and growth initiatives.

The Brickworks share price is up 13% since its record property earnings announcement

Brickworks shares have risen 12.8% since announcing on 9 June 2021 that it was expecting to report record property earnings in FY21.

A significant revaluation profit within its joint venture industrial property trust is expected to be around $100 million, leading to property underlying EBIT being between $240 million to $260 million.

There have been a number of significant industrial property transactions in western Sydney that have helped the valuations with accelerating industry trends towards online shopping and the increasing importance of well-located distribution hubs and sophisticated supply chain solutions.

Practical completion of the Amazon facility at Oakdale West is expected to occur in the first half of FY22. The even larger Coles Group Ltd (ASX: COL) distribution warehouse is under construction and completion is expected in early FY23.

The post Why the Brickworks (ASX:BKW) share price has beaten the ASX 200 in the last year appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares that could provide steady income in retirement
• Why the Brickworks (ASX:BKW) share price could still be a buy
• Brickworks (ASX: BKW) share price down 5% as operations curtailed
• Brickworks (ASX:BKW) share price on watch with US acquisition
• 2 ASX 200 shares that keep growing their dividends

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and 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 Flight Centre Travel Group Ltd (ASX: FLT) share price is taking off on Tuesday. Shares in the $2.85 billion travel agent aren’t alone in their ascent – with many other ASX travel shares experiencing a lift.

At the time of writing, the Flight Centre share price is trading 6.5% higher to $15.19. It appears the tourism sector is riding the coattails of a more optimistic day for COVID-19 briefings.

Lessening of limitations on the horizon

ASX shares with exposure to the tourism/travel industry have been worse for wear since the drastic resurgence in coronavirus case numbers stemming from the delta strain. As such, today offers somewhat of a reprieve for shareholders.

As part of her daily briefings, New South Wales Premier Gladys Berejiklian shared a perspective that might be refreshing for those in pandemic-pinched lines of work. The message was one of warning for those states relying on a ‘zero case’ approach. It also offered a glimmer of hope for an open NSW.

At this morning’s briefing, Premier Berejiklian stated:

Some states have zero cases and border closures, but every state will have to come out of that eventually.

Other states who have had zero cases for a long time, when they open their borders and welcome the international travel, welcome people from other states, the delta strain will take hold and that is why it is important to be prepared by getting high vaccine rates, ensuring the health system is in place to deal with that.

A major milestone for NSW’s vaccination rollout was hit today, with 6 million vaccine doses administered. The Premier noted this was equivalent to 60% of the population having one dose. Furthermore, 32% of the state is now fully vaccinated.

As a result, it is expected that the state will grant further freedoms to fully vaccinated people as early as Thursday this week.

NSW recorded 753 new locally acquired cases of COVID-19 in the 24 hours to 8pm last night. pic.twitter.com/S1yMf7bHD2

— NSW Health (@NSWHealth) August 24, 2021

https://platform.twitter.com/widgets.js

It seems investors might be speculating on the positive impact this could have on the broader tourism sector. In afternoon trade, the Flight Centre share price is soaring – along with Webjet Ltd (ASX: WEB), Corporate Travel Management Ltd (ASX: CTD), Helloworld Travel Ltd (ASX: HLO), and Qantas Airways Limited (ASX: QAN).

Flight Centre share price recap

Despite disruptions in its business activities, the Flight Centre share price has performed relatively in line with the broader S&P/ASX 200 Index (ASX: XJO). In fact, the company’s shares have regained ~70% from the peak of the COVID crash in March 2020.

However, the promise of eased restrictions for the fully vaccinated will be put to the test on Thursday.

This is when the NSW government has promised to make a further announcement on potential freedoms for the vaccinated and when Flight Centre’s FY21 full-year results are expected to drop. If nothing else, it will certainly make for an interesting day on the ASX share market.

The Flight Centre share price remains to be one of the most heavily shorted on the ASX.

The post Flight Centre (ASX:FLT) share price up 7% as travel shares rise on Tuesday appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• What Sydney Airport’s results could mean for Flight Centre (ASX:FLT) shares
• Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower
• Flight Centre (ASX:FLT) share price slips despite Rex (ASX:REX) agreement
• These are the 10 most shorted ASX shares

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Helloworld Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited, Helloworld Limited, and Webjet Ltd. The Motley Fool Australia has recommended 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 Pepper Money Ltd (ASX: PPM) share price is in the green today following the release of the company’s results for the first half of 2021.

Right now, the Pepper Money share price is $2.78, 6.92% higher than yesterday’s close.

Pepper Money share price jumps on 46% profit increase

Here’s how the loan provider performed over the first half of 2021:

• Statutory net profit after tax of $56 million – up 41.1% on that of the first half of 2020
• Ended the period with $16 billion of assets under management
• Lending assets under management up by 5.2% to $14.3 billion
• Record originations of $3.7 billion

Pepper Money’s first few months on the ASX were profitable.

The company reported net profit after tax, adjusting for initial public offering (IPO)-related costs, of $66.1 million. That represents a 57.3% increase on that of the first half of 2020.

The number of new mortgage values on its books increased by 33.9% to $2.8 billion over the half-year ended 30 June 2021.

Pepper Money’s asset quality remained strong. It reported its loss rates, excluding COVID-19 overlays, improved 9 basis points to 0.28% of lending assets under management over the first half.  

Additionally, its net interest margin improved 3 basis points to 2.59%. Pepper Money stated this reflected the increased scale of its asset finance business and ongoing improvements in its cost of funds.

Over the first 6 months of 2021, Pepper Money’s mortgage losses fell by 4 basis points to 0.01% of assets under management, excluding COVID-19 management overlays. Pepper Money states this shows the quality of its asset portfolio.

Additionally, its mortgage and asset finance arrears of more than 90 days reached pre-COVID-19 levels over the half-year.

Finally, over the half, Pepper Money finalised 2 residential mortgage-backed securities transactions. Together, they raised more than $1.5 billion of securitisation. Pepper Money also secured $700 million in warehouse capacity for prime mortgages.

What happened in the first half for Pepper Money?

We asked Pepper Money’s CEO Mario Rehayem about the last 6 months for the company and its share price.

IPO

Perhaps the most exciting news from Pepper Money over the 6 months ended 30 June 2021, was its debut on the ASX. Pepper Money’s IPO occurred on May 25, 2021.

Speaking on the company’s first few months on the public exchange, Rehayem said:

[Being a listed company] has been business as usual. We’re very focused on delivering our business strategy and pushing the boundaries on automation digital, and tools to supply the marketplace. Obviously, we came out of the gates and the share price isn’t as reflected from day one, but to be honest, that’s not in our control and our number one focus is to deliver on our business strategy.

At the time of writing, the Pepper Money share price has fallen 3.8% from its prospectus’ offering price of $2.89. Right now, shares in the company are trading for $2.78 apiece, 6.92% higher than their previous close.

Positive growth

While the share price hasn’t moved in the way Pepper Money’s initial investors might have hoped, it’s been a positive 6 months for the company. Rehayem outlined numerous achievements the loan provider has surpassed recently:

We’ve had quite a number of milestones. It has been a very celebratory 6 months. We celebrated our 21st anniversary, we listed on the ASX, we’ve settled more loans than we’ve ever done in our 21-year history. We’ve helped 10,500 self-employed customers in the first half to obtain a loan – which is a record 27,000 customers in total.

It’s just been milestone after milestone. It’s definitely been a great 6 months and we look forward to continuing these milestones in the second half.

Let downs

While Pepper Money hasn’t reported any major drawbacks, it hasn’t all been smooth sailing. Rehayem commented:

From a macro perspective, obviously, the lockdowns, that’s definitely been a low for us. But outside of that, our prepayments have been slightly higher than what we originally forecasted. The reasons for that are fairly obvious: it’s a very competitive market [with] record low interest rates, cash-back offers and incentive offers by a lot of the major banks, especially with the TFF [term funding facility] that they have offering very low fixed rates. So, we saw movements of people either paying down their loans with us, or looking to refinance a way to get record low interest rates elsewhere.

Because we are a business that is focused on looking after our customers, we have now shifted ahead with a huge focus on ensuring this scene is a learning experience for us and we’re looking to address the retention of our customers.

What did management say?

Commenting on Pepper Money’s IPO, and its share price’s downwards slide, Rehayem wasn’t concerned. He said:

We always knew coming out of the gates from the listing could be a little bit turbulent because of the macro environment, but we have a very solid business strategy. We have a 20-year proven track record through the cycle.

The foundation of this business is extremely strong, we’ve had 10 years of double-digit growth in the business… The business is extremely well managed, it has many levers and it’s diverse and flexible in the way it generates its revenue. The core segments that we play in have a huge corridor of growth, specifically the non-conforming segment of the market. Our technology is superior to our peers’, and we’ve invested very heavily into technology that’ll give us the scalability and efficiency that we need to continue growing for many years to come.

What’s next for Pepper Money?

Here’s what might drive the Pepper Money share price in FY22:

According to Rehayem, Pepper Money is set to continue its momentum, particularly as the Australian and New Zealand property markets are booming.

Additionally, the company’s investment into technology is making its business more efficient and negating much of the impact COVID-19 lockdowns may have otherwise had. Rehayem also highlighted some of the technological initiatives the company is working towards:

[Going forward] we’re focusing on the continual rollout of new products that will be distributed across our very extensive distribution footprint, across all of our asset classes both here in Australia and in New Zealand. We also have a number of initiatives that are coming out that will be focused on automation and digitisation. [These will] allow us to continue to scale up and keep a lid on our expenses.

As long as the market continues how it is, Pepper Money expects to bring in $120.7 million over 2021. It’s also looking to hand out its first ASX dividend in the second quarter of calendar year 2022.

The post Pepper Money (ASX:PPM) share price jumps 7% on ‘milestone after milestone’ appeared first on The Motley Fool Australia.

More reading

• 5 small-cap ASX shares on their way up

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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broad index on Tuesday.

Whereas the S&P/ASX 200 Index (ASX: XJO) is up 0.25% on the day, Bendigo Bank shares have climbed around 1.5% in the green.

Bendigo shares are on the move as “Australia’s better big bank” revealed a new program aimed at reducing textiles waste from its old staff uniforms.

Let’s peel back the layers on this one to get a better understanding of what Bendigo is up to.

‘Sustainability First’ uniforms

Bendigo Bank has partnered with award-winning recycling company Uparrel in a program to re-use and re-purpose its old work uniforms to soft filling.

Uparrel is a textiles recycling company that “eradicates textile waste”. It has a number of partnerships already in place. As such, Uparrel is gaining traction in the recycling business.

The “uniform recycling program”, as Bendigo puts it, mirrors the company’s focus on “supporting long-term strategies” of sustainability.

For context, Bendigo arrived at a dilemma when it introduced “new mix and match” uniforms for its staff from August 2021.

This led to a potential textiles waste problem with an “estimated 32-plus tonnes” of old uniforms no longer being worn. Hence, the Uparrel partnership seemed a natural fit to solve Bendigo’s problem.

As a result, the bank has achieved “carbon neutrality” this calendar year. Moreover, it is committed to “purchasing 100% renewable energy by 2025”.

Furthermore, Bendigo and Uparrel will meet again at the end of the project to discuss the total amount of greenhouse gases that were offset.

For instance, Bendigo stated that “every kilogram of clothing” that is recycled “will prevent 3-4 kg of greenhouse gases from entering our atmosphere”.

The duo will focus on producing a children’s flip-up sofa, made by Uparrel. One unit will purportedly use 3kg of recycled textiles.

In addition, Bendigo has extended its reach by allowing staff to send in their own old uniforms. In addition, it is offering discounts on solar panels and batteries for employees’ homes.

What did management say?

Bendigo’s executive of consumer banking Richard Fennell said:

We are proud to announce that Upparel has been chosen as our partner to assist with the upcycling of the old uniform range as we introduce a more contemporary ‘mix and match’ corporate wardrobe that really allows the personality of our Bendigo Bank team to shine through.

Bendigo Bank share price snapshot

The Bendigo Bank share price has had a choppy year to date, posting a gain of only about 6% since January 1. As such, it has lagged the broad index this year.

In addition, over the last month, Bendigo shares are about 3.5% in the red.

Despite this, the Bendigo share price has gained 56% over the last 12 months. This return has outpaced the broad index’s return of about 25% over the past year.

The post Bendigo Bank (ASX:BEN) share price outperforming amid ‘sustainability first’ appeared first on The Motley Fool Australia.

More reading

• How does the CBA (ASX:CBA) earnings result compare to Bendigo Bank?
• ASX 200 drops, Bendigo Bank sinks, JB Hi-Fi rises
• The ASX reporting wrap-up: Bendigo, Beach, Lendlease
• Why Beach, Bendigo & Adelaide Bank, Flight Centre, & Lendlease are tumbling lower
• Who’s starting the week off as the biggest mover on the ASX 300 today?

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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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.2% to 7,503.7 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are surging higher:

Hub24 Ltd (ASX: HUB)

The HUB24 share price is up 8% to $28.10. Investors have been buying the investment platform provider’s shares following the release of its full year results. For the 12 months ended 30 June, HUB24 reported a 34.4% increase in revenue to $110 million and a 47% lift in EBITDA to $58.6 million. This was driven partly by a 141% increase in platform FUA to $41.4 billion.

MNF Group Ltd (ASX: MNF)

The MNF share price is up 10% to $6.37. This morning this VoiP focused technology company released its full year results and revealed a 12% increase in recurring revenue to $113.2 million. This was driven partly by a 29% increase in phone numbers to 5.8 million. Also giving its shares a lift was management’s bold growth plans. It is aiming to grow the phone numbers on its network to 100 million by 2030.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is rocketing 23% higher to $7.25. This follows the release of its full year results this morning. For the 12 months ended 30 June, the infection prevention specialist reported a 3% increase in revenue to $103.1 million and a 15% decline in net profit after tax to $8.6 million. The latter was well ahead of the market’s expectations. In addition, Nanosonics announced a key new product.

Uniti Group Ltd (ASX: UWL)

The Uniti share price has jumped 8% to $4.28. Investors have been buying this telco’s shares after the release of a record result for FY 2021. Uniti reported a 175% increase in revenue to $159.9 million and a 254% jump in EBITDA to $93.7 million.

The post Why HUB24, MNF, Nanosonics, & Uniti shares are surging higher appeared first on The Motley Fool Australia.

More reading

• Nanosonics (ASX:NAN) share price up 28% after earnings beat and new product announcement
• Which ASX 300 shares are the biggest winners and losers on Tuesday?
• ASX 200 midday update: Kogan crashes, Nanosonics rockets
• MNF (ASX:MNF) share price rockets 17% on strong result and bold growth targets
• Uniti Group (ASX:UWL) share price soars on record revenue in FY21

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 Hub24 Ltd, MNF Group Limited, and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended MNF Group Limited and Nanosonics Limited. The Motley Fool Australia has recommended Hub24 Ltd and Uniti 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 ReadyTech Holdings Ltd (ASX: RDY) share price is gaining today after the company released its results for financial year 2021 (FY21).

Right now, the ReadyTech share price is $2.78, 6.73% higher than its previous close.

ReadyTech share price jumps on 27.4% increase to revenue

Here’s how the people management software provider performed over FY21:

• Revenue increased 27.4% to $50 million
• Profit (after tax) of $2.1 million, a 45.3% increase
• Underlying earnings before, interest, tax, depreciation, and amortisation (EBITDA) of $18.9 million – a 21.4% increase on that of FY20
• No dividend

FY21 was a good one for ReadyTech.

Of the company’s revenue, 87% came from reoccurring subscription contracts.

The company reported that its customer revenue retention for the 12 months ended 30 June was 96%. Additionally, ReadyTech’s average revenue per new customer increased to $35,500 in FY21, up from $28,600 in FY20.

As part of ReadyTech’s long-term strategy, its sales and marketing spend increased to 11% of its revenue.

The company’s education & work pathways segment brought in $24.9 million –16.9% more than the prior financial year. Its workforce solutions’ revenue also increased by 13.3% to reach $20.3 million.

Additionally, the company expanded its $19 million high conviction new business pipeline.

ReadyTech ended the period with $11.9 million cash in the bank and $30.9 million of borrowings.

What happened in FY21 for ReadyTech?

FY21 was a big one for ReadyTech and its share price.

Perhaps the most exciting news from the company was its $80 million acquisition of Open Office.

Open Office is a software business servicing local and state governments, courts, tribunals, and commissions.

ReadyTech’s FY21 results include the part year contribution of Open Office, which was $4.8 million.

ReadyTech also underwent a $25 million placement in November and completed a share purchase plan in April.

Additionally, ReadyTech’s growth strategy is working. It’s focusing on its ‘sticky’ products, which mean its customers must use its products to operate effectively. It’s also working on improving its customer service and support.

Finally, ReadyTech began a rebranding project in FY21. According to the company, the rebranding aims to “evolve and elevate ReadyTech’s master brand and brand architecture” while still underpinning its growth plans.

What did management say?

ReadyTech’s CEO and co-founder, Marc Washbourne, commented on the results driving the company’s share price higher, saying:

The results reflect increasing recognition in the marketplace of ReadyTech’s expertise in next generation customer-centric SaaS solutions that streamline operations, improve user experience and meet the strict compliance and regulatory needs of the education, workforce, government and justice sectors. This is particularly true of the higher value end of the market, where have seen strong new business performance across all markets we serve, with an impressive list of new customers onboarded during the year. At the same time, we continued to successfully execute on upsell/crosssell to our loyal customer base.

A strong top line and healthy profit margins have also allowed us to reinvest back in the business, supporting the long-term growth and earnings power of the company. ReadyTech operates in multiple large addressable markets that are ripe for digital transformation – and we are listening very closely to the needs of customers and investing accordingly. Our continued reinvestment in research and development supports ReadyTech’s strong product-market fit, new roles in sales and marketing drive execution on go to market, and investment in customer onboarding contributes to the streamlining of operations as we scale.

What’s next for ReadyTech?

Here’s what might drive the ReadyTech share price in FY22:

While ReadyTech didn’t give exact guidance, Washbourne did give us a slight outlook.

He commented that ReadyTech hopes to achieve organic revenue growth in the midteens in FY22, with an EBITDA margin of 36% to 38%.

Additionally, Washbourne stated ReadyTech is targeting organic revenue of more than $125 million by FY26.

The company also noted it can’t rule out being further impacted by COVID-19 in the current financial year.

ReadyTech share price snapshot

The ReadyTech share price has gained 32% year to date. It has also increased 70% since this time last year.

The post ReadyTech (ASX:RDY) share price soars 7% on $50 million revenue 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. owns shares of and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings 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 McMillan Shakespeare Limited (ASX: MMS) share price is in freefall after the release of the company’s full-year results for FY21.

At the time of writing, shares in the salary packaging and asset management provider are trading for $12.18 – down 8.97%. The S&P/ASX 200 Index (ASX: XJO), meanwhile, is 0.18% higher.

Let’s take a closer look.

McMillan Shakespeare share price slumps despite dividend almost doubling

• Revenue from continuing operations rose 10.2% on the prior corresponding period (pcp) to $544 million.
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $131 million – up 31.4% on the pcp.
• Basic earnings per share (EPS) rocketed more than 4,800% on the pcp to 78.9 cents.
• Net cash inflow of $66.6 million for the financial year.
• Full-year dividend of 61.3 cents per share (final dividend of 31.1 cents and interim dividend of 30.2 cents), fully franked. It’s an 80.3% increase on the pcp and represents a yield of 5.05% on the current share price.

What happened in FY21 for McMillan Shakespeare?

The biggest story in the world, and one that had a material impact on the McMillan Shakespeare share price in FY21, was the coronavirus pandemic.

The company talked about the effect of the pandemic on its finances in its annual report. To quote:

In response to the pandemic, we instituted a wage freeze for FY21 and no bonuses relating to FY20 were paid. Additionally, we extended senior debt maturities and non-essential spending was restricted. The Australian Government JobKeeper funding received ($7.3 million after-tax) in FY21 enabled the retention of our employees despite the challenges of COVID-19 and the negative impacts on our financial performance compared to FY19. The business by period end had returned to around 90% of its pre-pandemic performance, equating to approximately 80% in the absence of JobKeeper.

What’s next for McMillan Shakespeare?

McMillan Shakespeare said it expects the uncertain trading environment of the pandemic to continue in FY22.

“We expect the abnormal trading conditions that characterised FY21 to continue throughout FY22, in particular given the ongoing response of governments to the global pandemic, and motor vehicle supply constraints,” the company said.

“Our strategic focus in FY22 centres on growth and efficiency across our businesses…”

McMillan Shakespeare share price snapshot

Despite today’s massive correction, the McMillan Shakespeare share price has increased 25% over 12 months. It has dropped just over 1% year-to-date, however.

McMillan Shakespeare has a market capitalisation of around $1 billion.

The post McMillan Shakespeare (ASX:MMS) share price plummets 9% despite 2500% rise in NPAT appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Sidarous 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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