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Australia’s largest mining initial public offering (IPO) in more than a decade is under way after 29Metals Limited (ASX: 29M) hit the boards of the Australian Securities Exchange at lunch.

At the time of writing, the newly listed copper producer is trading at $1.97 a share. This is down 1.5% from the company’s offer price of $2.

Upon listing, 29Metals joins the ranks of other ASX copper players such as Sandfire Resources Ltd (ASX: SFR) and OZ Minerals Ltd (ASX: OZL).

29Metals slides into ASX copper cathedral

Prior to going public, 29Metals raised approximately $527.8 million through its IPO offer. Shares were priced at $2 each, giving it an indicative market capitalisation of more than $960 million.

The well-timed debut follows a massive 56% surge in the commodity’s price over the last year. A rebound in the global economy paired with an acceleration in the ‘green transition’ has analysts at Goldman Sachs bullish on copper over the coming years.

According to the Australian Financial Review, Macquarie Capital and joint lead managers Credit Suisse and Morgan Stanley had the offer filled at $2.05. However, 29Metals’ owner EMR Capital was conscious of retaining a 45% holding. Because of this, EMR decided to pull the offer price down to $2 and offload a bit more to other institutional investors.

Let’s talk numbers

The miner’s portfolio of mining assets consists of Golden Grove (Western Australia), Capricorn Copper (Queensland), and Redhill (Chile). Between these, 29Metals produced 41,000 tonnes of copper in FY20. For comparison, Sandfire Resources produced 79,000 tonnes.

When including its production of gold, zinc, silver, and lead, 29Metals delivered a copper equivalent production of 87kt. As a result, the company achieved total statutory revenue of $434 million in FY20. Moreover, the board aims to increase production, in copper equivalent terms, by more than 50% over five years.

Based on the prospectus, forecasted statutory revenue for FY21 is $557 million.

The post 29Metals (ASX:29M) slips on biggest ASX mining debut in a decade appeared first on The Motley Fool Australia.

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• How Saxo Market’s Q3 outlook is good news for ASX copper shares
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• ASX 200 Weekly Wrap: ASX makes it 5 out of 5

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 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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Cyclopharm Limited (ASX: CYC) shares are on the rise today after the company released a trading update earlier today. In early afternoon trading, the Cyclopharm share price is trading 3.03% higher at $1.70.

Shares in the company were up by more than 7% in earlier trade after hitting an intraday high of $1.775.

Lets take a look at what Cyclopharm announced.  

Record first-half revenue

The Cyclopharm share price is getting a boost today after the company released unaudited accounts for the 6 months ending 30 June 2021.

The report was highlighted by record half-year revenue of approximately $8.1 million. The result reflects a 45% increase from the prior corresponding period.

In addition, Cyclopharm highlighted that revenues from Patient Administration Sets are expected to be 20% higher than the first half of 2020.

Cyclopharm noted that the revenue performance reflects the continuing shift in the mix of consumable sales to higher margin markets.

The company also highlighted that net cash at the half-year is expected to be in excess of $30 million. As a result, Cyclopharm confirmed its intention to pay a dividend of 0.5 cents per share at the half-year.

Cyclopharm managing director, James McBrayer said of the results:

Cyclopharm’s strong revenue growth across all our product and service lines in our established markets is driving the business to significantly outperform the results in the first halves of 2020 and 2019.

Cyclopharm share price snapshot

Cyclopharm is a biotech company that operates in the diagnostic imaging field, specialising in lung health. The company’s flagship Technegas technology is used across 60 countries throughout the world.

The Cyclopharm share price was travelling well in 2021 until last week when it tumbled around 40% following a market update.

The company announced it had received negative feedback from the United States Food and Drug Administration (FDA), sending investors running for the hills.

According to the announcement, the FDA noted that Cylopharm’s Technegas could not be approved as it stands.

The FDA gave Cyclopharm a list of items it needs to address within 12 months to potentially gain approval. Cyclopharm assured the market it will be able to address the required issues and still hopes to secure FDA approval in 2022.

Despite today’s bounce, the Cyclopharm share price remains more than 32% lower for the year.

The post Cyclopharm (ASX:CYC) share price jumps on trading update appeared first on The Motley Fool Australia.

More reading

• Why the Cyclopharm (ASX:CYC) share price is crashing 42% lower

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 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 Westpac Banking Corp (ASX: WBC) share price has given back its morning gains and is trading lower this afternoon.

At the time of writing, the banking giant’s shares are down 0.3% to $25.58.

Why is the Westpac share price trading lower?

It has been a busy day for Australia’s oldest bank. This morning the company revealed that it has been hit with an $87 million bill for failing to provide 32,000 customers with critical information from its financial advice business.

Whereas this afternoon, the bank advised that it has discovered a significant potential fraud.

According to the release, Westpac has commenced proceedings in the Federal Court of Australia against Forum Finance. This follows the discovery of significant potential fraud relating to a portfolio of equipment leases with Westpac customers arranged by Forum Finance, which were referred to Westpac’s Institutional Bank.

What is Forum Finance?

According to its website, Forum Finance provides technology and automation solutions that aim to unlock a business’ potential. As well as equipment leasing, its solutions include asset tracking, business processing automation, cloud and managed IT, and managed print services.

Forum Finance claims that its clients include Boston Scientific, Findex, Guide Dogs NSW/ACT, and WesTrac.

What now?

Positively, while investigations are ongoing and the NSW Police, ASIC, and APRA have been notified, at this stage it appears that no Westpac customer has suffered a financial loss from the fraud.

However, Westpac hasn’t been so lucky. It estimates that it has a potential exposure of around $200 million after tax, with the extent of any loss dependent on the outcome of its investigations and recovery actions underway.

The bank has obtained certain asset freezing and search orders to preserve available assets and relevant information. It has also investigated how this was able to happen, including an external review.

Westpac’s CEO, Peter King, commented: “Westpac takes fraud very seriously and will take all necessary actions to protect the interests of the bank and its customers. This is a complex issue, and we are working at pace to address it, including engaging with the police and regulators. At this preliminary stage, the potential fraud is sophisticated and appears to have been perpetrated externally. Our new Chief Executive of the Institutional Bank, Anthony Miller, is working with our customers to ensure no disruption to their operations.”

The post Westpac (ASX:WBC) share price lower after revealing $200m potential fraud appeared first on The Motley Fool Australia.

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• ASX 200 up 0.25%: IDP Education rockets, Westpac hit with $87m bill
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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Suncorp Group Ltd (ASX: SUN) share price is lifting after the company announced the sale of its Tasmania general insurance business for nearly $85 million this morning.

After reaching an intraday high of $11.11 this morning, shares in the insurance giant are currently trading for $11.01 – up 0.27%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.42% higher at 7,295 points.

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

Suncorp sells out

In a statement to the ASX, Suncorp announced the sale of its 50% interest in RACT Insurance (RACTI) to its joint venture partner, the Royal Automobile Club of Tasmania Ltd (RACT).

The sale is worth $83.75 million and the RACT will be paying upfront in cash. Suncorp says the price-to-earnings ratio for the sale is approximately 18:1. Suncorp expects a pre-tax profit of $65 million to $70 million.

Subject to regulatory approval, the sale should be finalised at the end of this calendar year.

The Suncorp share price is moving today after the news.

Suncorp CEO Steve Johnson said:

Suncorp and RACT have enjoyed a successful relationship in Tasmania since 2007. We have mutually agreed that now is the right time for RACT to take full control of the insurance entity. This is consistent with our focus on simplifying the Group and driving improvement in our core insurance and banking businesses.

Tasmania remains an important market for Suncorp Group. We are now focused on driving growth in the region through our wholly owned brands. This includes our leading national mass market brand AAMI, as well as our more specialised brands Shannons and APIA.

Other company news

Suncorp also announced its reinsurance placement for FY22 and a review of its pay and leave entitlements.

On the first matter, the upper limit it is budgeting for home, motor, and commercial claims is $6.5 billion. This is the same as FY21. Its allowance for natural disaster payments is $980 million for FY22.

Regarding pay and leave entitlements, Suncorp advised it will begin payments to employees who have not been granted their lawful pay and/or leave entitlements.

In May 2020, Suncorp self-reported this issue to the Fair Work Ombudsman and has been working to rectify it since, according to the statement.

The group expects the total cost of remediation to be about $60 million.

Suncorp share price snapshot

Over the past 12 months, the Suncorp share price has increased 23.3%.

On the first trading day of 2020 back in pre-COVID times, the Suncorp share price was $12.94.

Over the past 52 weeks, the highest share price reached has been $11.94.

Suncorp has a market capitalisation of about $14 billion.

The post Why the Suncorp (ASX:SUN) share price is on the rise today 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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The S&P/ASX 200 Index (ASX: XJO) has just finished up one of its best financial years ever. As of market close on 30 June (Wednesday evening), the ASX 200 had managed to finish 24% higher than where it was at the end of FY2020 last year. That was its best financial year in the ASX 200’s history.

In saying that, it was coming off of a low base, considering how June 2020 was only a few months after the dramatic COVID-induced market crash that hit the ASX in February and March. Still, not a bad effort.

However, the ASX’s older index, the All Ordinaries Index (ASX: XAO), fared even better than the ASX 200. It managed to put on a hefty 26.5% over FY2021. So let’s take a look at some of the best All Ords winners from FY21.

5 top-performing All Ords shares in FY21

PPK Group Limited (ASX: PPK)

Mining equipment company PPK Group was a great share to have owned in FY21. It started out the financial year at just $3.11 a share but finished up on Wednesday at $15.80. That’s a very pleasing gain of 408%. PPK seemed to really kick into gear in investors minds back in May. That’s when the company announced that one of its subsidiaries – Li-S Energy – had developed a new lithium-sulphur battery with nanotube technology. The shares reacted extremely positively to this news when it was announced, and haven’t looked back since.

Pilbara Mierals Ltd (ASX: PLS)

Pilbara is another top performing share from FY20. This ASX 200 lithium miner seemed to benefit from a triple tailwind in FY2021. Firstly, a rising lithium price helped Pilbara buff up its margins very nicely. Secondly, Pilbara also managed to increase its lithium production through the year, capitalising on those higher margins. And thirdly, ASX investors seemed to harbour rising excitement over any share in the lithium and electric battery space. Which of course, includes Pilbara. As such, this company rose from just over 23 cents a share at the start of FY21 to finish up the year to $1.44 – a gain of 480%.

Chalice Mining Ltd (ASX: CHN)

Another ASX miner, Chalice was another All Ords share that managed an enviable performance last financial year. Chalice is in the gold business. And investors can largely thank bullish developments at Chalice’s largest mines and a rising gold price for its stellar performance in FY21. In particular, a potential discovery of nickel and copper at its Julimar project seems to have really upped the excitement over Chalice in the last financial year. If the company hadn’t dropped around 15% of its value last month, its gains would have been even higher. Regardless, this company still gave investors a very healthy 657% gain in the 12 months to 30 June 2021, rising from roughly $1 a share to $7.42. Not much to complain about there!

Liontown Resources Limited (ASX: LTR)

Yet another mining company, Liontown also joins the All Ords winners for FY21. Liontown shares started the financial year at just over 10 cents a share but ended up finishing at a much healthier 84 cents. That gain is worth 672% for any lucky investor who enjoyed it. Liontown is another ASX lithium miner, and so benefitted from many of the same tailwinds as Pilbara did. Its Kathleen Valley lithium project (containing one of the largest lithium deposits in the world) is set to come online by 2025. More specifically though, Liontown told investors in April that it has also managed to find a significant gold deposit in its Moora project as well.

Imugene Limited (ASX: IMU)

Finally, we get to the best performing ASX All Ords share for FY21, and it’s none other than biotech company Imugene. Imugene started FY21 at just 3.1 cents a share. But by Wednesday, this company was worth 35.5 cents a share – a massive gain of 1,045% for the 12 months. This company could seemingly do no wrong in FY21. In April, it informed the markets that its gastric cancer clinical trials had gone well. Following this, May saw the announcement of further clinical trials for the treatment of cancerous tumours with oncolytic virus and cell therapy technology. Not surprisingly, most of Imugene’s share price gains came over the last quarter of FY21.

The post Here are the 5 best performing ASX All Ords shares from FY21 appeared first on The Motley Fool Australia.

More reading

• The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why
• ASX 200 up 0.25%: IDP Education rockets, Westpac hit with $87m bill
• Chalice (ASX:CHN) share price gaining on high-grade assay results
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Motley Fool contributor Sebastian Bowen unfortunately 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 Mineral Resources Ltd (ASX: MIN) share price made a breakthrough in June, surging 16.48% to a record closing price of $54.30.

Let’s take a look at what factors might have pushed the Mineral Resources share price to record territory.

Growing iron ore production

Mineral Resources is Australia’s fifth largest iron ore producer, according to its recent Macquarie Conference presentation.

The presentation highlighted the company’s ambitious plans. These include increasing iron ore production from 20 million tonnes per annum (mtpa) to 90 mtpa in the next 5 years.

With iron ore prices sitting near all-time highs of US$213/tonne, it’s no wonder Macquarie analysts think the Mineral Resources share price could pay some big dividends in the coming years.

Investment into lithium assets

Mineral Resources operates the Mt Marion mine in a 50-50 joint venture with Chinese lithium giant, Ganfeng.

According to Mineral Resources, Mt Marion in WA is the fourth largest hard rock lithium mine in the world.

An upgrade project is under way to expand Mt Marion’s production from 206,000 tonnes of spodumene concentrate per annum to 450,000 tonnes pa.

Additionally, Mineral Resources sold a 60% stake in its Wodgina lithium project to another lithium giant, Albemarle, back in 2019. Mineral Resources says the Wodgina project is the “largest hard rock lithium mine in the world”.

While production remains halted, the company’s third quarter results said the joint venture “regularly reviews market conditions with a view to resuming spodumene concentrate production as and when required and as driven by market demand”.

In addition, higher lithium prices and demand has helped the likes of Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) emerge as some of the best performing S&P/ASX 200 Index (ASX: XJO) shares in FY21.

Also, the resurgence of lithium could be a factor supporting the bullish performance of the Mineral Resources share price.

Growing mining services business

Mineral Resources also specialises in mining services, with operations including construction, crushing, processing and haulage.

According to the company’s half-year results, mining services contributed $784 million of the company’s total $1,531 million revenue (51%).

The company says it wants its mining services to “more than double” in the next 5 years.

Mineral Resources share price snapshot

Mineral Resources shares have hit the ground running this financial year, reaching a new high of $55.16 today. At the time of writing, they are priced at $55.05 — up 3.17% on yesterday’s close.

The company’s shares have surged 43% year-to-date, lifting its market capitalisation to $10.3 billion.

The post The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why appeared first on The Motley Fool Australia.

More reading

• Meet the best performing ASX 200 shares of FY21. Are yours on the list?
• These are the 5 best ASX mining and resource shares of FY21
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• Here are 3 of the most active ASX 200 shares today
• 2 high yield ASX dividend shares named as buys

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

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Shares in 88 Energy Ltd (ASX: 88E) are soaring for the second day in a row despite the company not releasing any price-sensitive news to the market. At the time of writing, the 88 Energy share price is trading at 3.8 cents – 22.58% higher than its previous close. It also gained 11.5% yesterday.

The latest gains seem to be a reaction to 88 Energy completely repaying all its outstanding debt yesterday. However, yesterday’s news was simply following up on an announcement 88 Energy made on 21 June.

To get a feel for today’s mystery movement, let’s take a look at what 88 Energy has been up to lately.

The month that’s been for 88 Energy

Over the past 30 days, the 88 Energy share price has gained a whopping 76%. Here’s all we’ve heard from the company last month.

More working interest

The first news we heard from 88 Energy last month came on 7 June, when the company announced it had decided to purchase the 50% of Project Peregrine’s working interest it didn’t already hold from its joint venture partner.

Project Peregrine is an oil field in Alaska.

The purchase cost 88 Energy $18 million, which it can pay in shares.

While the news seemed positive, it drove the 88 Energy share price to close 9% lower.

Debt free

Then, on 21 June, 88 Energy announced it was about to pay off its US$16.1 million of outstanding debt.

A subsidiary of the company held Alaskan oil and gas tax credits, valued at US$18.7 million.

The sale also boosted 88 Energy’s coffers by US$2.6 million.

Additionally, the financier holding the company’s debt waived all early repayment penalties.

Yesterday, 88 Energy confirmed the debt repayment was complete.

Positive test results

On 24 June, 88 Energy announced it had received encouraging results from preliminary tests at the Merlin-1 Well, located in Project Peregrine.

The tests showed oil within the well had no signs of biodegradation. They help to build on the company’s knowledge of the quantity and mobility of the well’s hydrocarbons, as well as the project’s commercial potential.

New ESG measures

Finally, on 30 June, 88 Energy adopted the environmental, social, and governance (ESG) framework designed by the World Economic Forum to be the global standard.

88 Energy share price snapshot

The 88 Energy share price has been performing exceptionally well lately, gaining around 362% year to date.

It is also 640% higher than it was this time last year, when its shares were worth 0.5 cents.

The company has a market capitalisation of around $493 million, with approximately 13 billion shares outstanding.

The post The 88 Energy (ASX:88E) share price is up 23% today appeared first on The Motley Fool Australia.

More reading

• Why the 88 Energy (ASX:88E) share price is plummeting 9% this morning

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 IDP Education Ltd (ASX: IEL) share price is rocketing higher on Friday.

At one stage, the language testing and student placement company’s shares were up 20% to a record high of $29.49.

When the IDP Education share price hit that level, it was up 43% since the start of the year.

Why is the IDP Education share price rocketing higher?

Investors have been buying the company’s shares after both the market and brokers responded positively to the announcement of a new acquisition.

After the market close on Thursday, IDP Education revealed that it has entered into a binding agreement to acquire 100% of the British Council’s Indian International English Language Testing System (BC IELTS India) operations for 130 million pounds (~A$240 million).

IDP Education and the British Council currently both administer IELTS tests in India, operating parallel pan-Indian distribution networks. However, post transaction, IDP Education will be the sole distributor of IELTS in the key Indian market.

The release explains that the transaction is estimated to be approximately 13% earnings per share accretive (pre-synergies) on a pro forma calendar year 2019 basis. It also sees scope for material combination benefits, with estimated run-rate synergies of A$6 million to A$8 million expected to be delivered within 24 months of completion.

In addition to the acquisition, the company provided a brief update which revealed that trading conditions have improved in recent weeks.

Broker response

A number of brokers have responded positively to the news. Morgans, Morgan Stanley, UBS, and Goldman Sachs have all retained their equivalent of buy ratings this morning.

In respect to the latter, this morning Goldman Sachs reiterated its buy rating and $29.90 price target on the company’s shares.

It commented: “In our view this transaction makes good strategic sense for IDP, with India the largest IELTS market globally (by volume). The company has guided to A$6-8mn synergies, which in our view should be achievable given IEL’s knowledge of BC’s Indian operations and its position in the market. We think India presents a strong long-term growth opportunity for IDP. Economic growth, increasing wealth and a relatively young population in India provide a positive demographic backdrop for an increasing propensity to study abroad.”

Goldman also sees further opportunities for consolidation.

“Although India is the key market for IDP, we note this transaction could also open up the opportunity for further IELTS consolidation between IDP and BC in other markets. IDP and BC compete for delivery of the test in markets such as: Canada, USA, South Korea, Hong Kong, Singapore and other major South East Asian countries. IDP exclusively delivers the test in Australia and Iran, while BC controls distribution in the UK and China,” the broker added.

Finally, Goldman remains positive on its outlook. It explained: “We believe IELTS testing volumes should grow at mid to high single digits over the medium term as global economies reopen. The test is approved/required not only for international students wanting to study in Australia, the UK and Canada but also for work visas and other migration. Any further consolidation of the delivery of the test could be earnings accretive for IDP.”

The post Why the IDP Education (ASX:IEL) share price is up 20% to a record high appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.25%: IDP Education rockets, Westpac hit with $87m bill
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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 Idp Education Pty Ltd. 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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Superloop Ltd (ASX: SLC) shares are edging lower in midday trading today after the company announced it had successfully completed its planned retail entitlement offer.

At the time of writing, the Superloop share price is trading at 93.75 cents, 0.27% in the red from yesterday’s close.

Let’s dive into what happened this morning.

Successful retail entitlement offer

Back on 8 June, Superloop announced its intention to complete a fully underwritten $100 million equity capital raise.

The raise was to be completed via an entitlement offer of new Superloop shares totalling $51 million, plus an institutional placement to institutional investors, to raise $49 million.

The entitlement offer is comprised of an institutional component and a retail component, known as the ‘retail entitlement offer’.

Both the institutional placement and institutional component of the entitlement offer settled successfully on 17 June 2021, with a total of $78.8 million raised, according to the company.

Today’s announcement outlines that the retail entitlement offer settled on 29 June, raising $21.2 million. Approximately 22.8 million new Superloop shares will be issued under this offer on 6 July, the company stated.

The new shares issued under the offer are expected to commence trading on the ASX from 7 July.

Superloop share price snapshot

The Superloop share price has largely walked southwards since 1 January and is currently around 10% in the red since then.

Superloop shares are also down by around 7% over the previous month but have traded up by around 1% over the previous 5 sessions.

Over the last 12 months, Superloop shares have posted a loss of almost 13%, which is well below the S&P/ASX 200 Index (ASX: XJO)’s return of around 20% over this time.

With the current Superloop share price of 93.75 cents, the company has a market capitalisation of around $423.5 million. It is currently trading off its 52-week high of $1.25.

The post Superloop (ASX:SLC) share price slips following successful retail offer appeared first on The Motley Fool Australia.

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• The Superloop (ASX:SLC) share price is on a rollercoaster ride today
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended SUPERLOOP FPO. 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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After a calamitous 16-year reign, the chair of iconic Australian brand Hills Ltd (ASX: HIL) has announced her retirement.

Jennifer Hill-Ling, whose family founded the company in 1948, stepped down as chair immediately on Thursday and will leave the board altogether “later in the year”.

Former chief of Pro Medicus Limited (ASX: PME), David Chambers, will take over in leading the board. He’s also the current chair of Mach7 Technologies Ltd (ASX: M7T).

Hill-Ling’s great uncle Lance Hill invented the famous Hills Hoist rotary clothesline in 1945. Her grandfather Harold Ling joined his brother-in-law to start mass manufacturing the product that would become a staple of Australian backyards.

Both co-founders had stints as chair, before Hill-Ling’s father Robert Hill-Ling took over. Jennifer took the reins in late 2005.

Unfortunately, her tenure has not been successful for shareholders, as a series of business decisions took the Hills share price from a high of $6.72 in August 2007 to just 14 cents after market close on Thursday.

That’s a painful 98% loss.

Hills doesn’t make clothes lines anymore

The Adelaide company sold off the rights to the clothes hoists a few years ago and is now involved in sectors that are far removed from its original product.

“It has been a great privilege and honour to serve as a director of Hills and, for the past 16 years, as its chairman,” said Hill-Ling.

“During this time, Hills has established a leading healthcare business providing nurse call and patient engagement solutions that is well positioned to expand further within the health technology sector.”

On behalf of her family, she endorsed the new chair Chambers, his board and their plans for the business.

“I am confident that Hills is well-placed to continue to grow its businesses,” she said.

“They have and will continue to have the support of the Hill-Ling family as they implement the company’s growth initiatives.”

The Hills share price has lifted 3.57% this morning and is trading at 14.5 cents at the time of writing.

The post ASX company boss finally exits after 98% wiped off share price appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MACH7 FPO and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended MACH7 FPO. 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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