Tag: Motley Fool

The Laybuy Holdings Ltd (ASX: LBY) share price has returned from its trading halt and is tumbling lower.

In late morning trade, the buy now pay later (BNPL) provider’s shares are down 15% to 58 cents.

Why is the Laybuy share price sinking?

The Laybuy share price has come under pressure today after it announced the successful completion of a $35 million capital raising.

According to the release, the company raised the funds from new and existing institutional and sophisticated investors at a massive 26.5% discount of 50 cents per new share.

Laybuy will now seek to raise a further $5 million via a share purchase plan at the same price.

Why is Laybuy raising funds?

The proceeds of the capital raising are to be invested in technology, marketing, and people to accelerate Laybuy’s growth in the UK market.

Laybuy’s Managing Director, Gary Rohloff, commented: “The opportunity in the UK market should not be underestimated. The UK has a retail market approximately 2.2 times larger than the Australian market in terms of overall spending. It is also a market where a higher proportion of retail spending is online, and where BNPL is still in early stages of adoption,”

“Laybuy is already widely recognised as one of the UK’s leading BNPL providers, with consumers spending more than £151 million through Laybuy in the past year, up 504% on prior year. This capital raise is an important step for Laybuy, enabling the company to continue its strong momentum and to capitalise on the significant growth opportunity in the UK market. We believe this will maximise shareholder value in the longer term,” Mr Rohloff added.

Strategic Partnership

In addition to the capital raising, Laybuy announced that it is entering into strategic partnerships with Rakuten, AWIN and Sovrn.

According to the release, these partnerships will see Laybuy customers having access to over 5,000 merchants in the UK. This includes major brands ASOS, Nike, Marks & Spencer, Amazon and eBay.

Furthermore, these partnerships will enable customers to use Laybuy’s Tap to Pay digital card with these merchants. This allows users to pay with Laybuy both online and in-store without further merchant integration or direct relationships.

While this is a positive, it hasn’t been enough to stop the Laybuy share price from sinking today.

More reading

• Why is the Laybuy (ASX:LBY) share price frozen today?
• Laybuy (ASX:LBY) share price slides despite key UK appointment
• Why is the Zip (ASX:Z1P) share price down 11% so far this month?
• The Afterpay (ASX:APT) share price breaks below $100
• Laybuy (ASX:LBY) share price slides despite ‘record Mania sales’

Motley Fool contributor James Mickleboro 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.

The post Why the Laybuy (ASX:LBY) share price is tumbling 15% lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3v3YJeD

The Cettire Ltd (ASX: CTT) share price is climbing in early morning trade. This follows the luxury online retailer’s announcement of a new partnership agreement.

Headquartered in Victoria, Cettire is Australia’s largest luxury e-commerce website that offers an extensive range of men’s and women’s clothes. The company sells famous international branded products from Prada, Gucci, Saint Laurent, Fendi, Dolce and Gabbana, and more.

At the time of writing, Cettire shares are swapping hands for $1.86 apiece, up 8.14%.

Cettire expands offering

According to this morning’s release, Cettire advised it has teamed up with leading global buy-now-pay-later (BNPL) provider, Klarna.

Founded in 2005, Klarna is a Swedish-based fintech company that allows customers with flexible shopping and payment options. The business has over 90 million active customers, with onboard merchants totalling 250,000. On a daily average, Klarna sees more than 2 million transactions on its platform.

Under the deal, Cettire will provide its customers shopping in Australia and United States Klarna’s BNPL services. The enhanced offering is targeted at giving customers greater flexibility when paying for products.

While the rollout will no doubt entice new and existing customers, Cettire did not provide a launch date.

Comments from the CEO

Cettire founder and CEO, Dean Mintz commented:

Consumers expect convenient and flexible shopping online. Klarna is uniquely placed to meet the continued accelerated demand that Cettire is experiencing online across multiple geographies.

Klarna will continue to enhance Cettire’s value proposition and further improve our customer experience through added convenience, flexibility and control. Further, by directly accessing Klarna’s large and expanding consumer network of 17 million shoppers in the US and 0.8 million shoppers in Australia, we look forward to introducing Cettire to a new audience of passionate luxury consumers.

Cettire share price snapshot

Since listing in December at a price of 50 cents, Cettire shares have continued its amazing run. Year-to-date performance stands at a gain of close to 280% in less than 6 months of trading.

Based on today’s prices, Cettire has a market capitalisation of roughly $674 million, with approximately 381 million shares on issue.

More reading

• Top brokers name 3 ASX shares to buy today
• 56% of Aussies think Elon Musk invented Bitcoin
• United Malt Group (ASX:UMG) share price jumps on half-year results
• What’s happening with the Infratil (ASX:IFT) share price?
• Why the EML Payments (ASX:EML) share price is crashing 52% lower

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Cettire (ASX:CTT) share price jumps 8% on Klarna partnership appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33YJ709

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

James Hardie Industries plc (ASX: JHX)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this building materials company’s shares to $50.00. This follows the release of its fourth quarter and full year results earlier this week. James Hardie’s profits came in ahead of Macquarie’s expectations, thanks largely to its performance in Europe and the Asia-Pacific markets. The broker was also pleased with the company’s margin targets. It believes this is a strong sign that management is confident in its ability to manage cyclical variability. The James Hardie share price is currently fetching $40.91.

Nuix Ltd (ASX: NXL)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $7.50 price target on this analytics company’s shares. This follows Nuix’s investor briefing on Tuesday. Overall, the broker came away from the event feeling positive about the industry and its future. Though, it acknowledges that the market may take time to become as confident due to its guidance downgrades and uncertainty over future growth rates. The Nuix share price is trading at $3.69 on Wednesday.

St Barbara Ltd (ASX: SBM)

Analysts at Goldman Sachs have retained their buy rating but trimmed their price target on this gold miner’s shares to $3.00. According to the note, the broker remains positive on St Barbara despite its “unsurprising” guidance downgrade this week. Goldman likes St Barbara due to the significant discount that its shares trade at compared to its peers and its positive growth outlook. In respect to the former, it notes that it trades at 0.5x net asset value (NAV) compared to the sector average of 0.75x NAV. The St Barbara share price is fetching $1.77 this morning.

More reading

• ASX 200 rises, Nuix jumps, James Hardie drops
• Why Aristocrat Leisure, Creso Pharma, Nuix, & Resolute are charging higher
• Nuix (ASX:NXL) share price gains 12% on signals of accountability
• ASX 200 up 0.6%: James Hardie Q4 update, St Barbara sinks, Nuix jumps
• St Barbara (ASX:SBM) share price crashes 10% on guidance downgrade

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3fxfJDB

It seems Australians are very much interested in Bitcoin (CRYPTO: BTC) but don’t know a whole lot about it.

Comparison site Finder conducted a survey this month that showed 25% of Aussies will either own or plan to own cryptocurrency by the end of this year. But 20% don’t know how to buy it.

And remarkably, 56% falsely believed Tesla Inc (NASDAQ: TSLA) chief executive Elon Musk invented Bitcoin.

Bitcoin was in fact created by an anonymous developer with the alias Satoshi Nakamoto.

Nakamoto’s identity has been the topic of furious debate in the past decade. Some, like Australian academic Craig Wright, have claimed they are the real Nakamoto — but no contender has entirely convinced the crypto community.

Musk denied he was Sakamoto in a tweet back in 2017.

8 myths about Bitcoin that Aussies believe in

The Finder study also found many other misconceptions that Australians believed regarding Bitcoin.

Here are the 7 biggest ones other than the ‘Elon Musk inventor’ theory:

“Bitcoin is not taxed”

The majority of Aussies (59%) think this, even though cryptocurrency profits are taxed as either income or capital gains — like any other asset.

“There’s an unlimited number of Bitcoins to be mined”

Programmatically, Bitcoin is limited to a maximum pool of 21 million, but 44% of Australians think there is an infinite source. 

According to Finder, there are currently about 18.6 million in circulation. While there are many active miners at the moment, due to technical reasons experts don’t expect to hit the 21 million cap until the next century.

“Bitcoin has been around for more than 15 years”

Not quite. While 44% of Aussies believe this, the cryptocurrency was first distributed in 2009. It was the first-ever implementation of blockchain database technology, and sold for a fraction of a cent initially.

It’s now worth $55,552.

“There are fewer than 100 cryptocurrencies”

Thanks to the explosion in popularity over the past 4 years, many different cryptocurrencies have been developed. There are now more than 4,000 currencies in circulation, according to Finder, and this number is growing weekly.

The second most prominent cryptocurrency, Ethereum (CRYPTO: ETC), has been on fire lately. A Bezinga survey this week found investors thought it would actually outperform Bitcoin through this year.

“One Bitcoin is worth more than $100,000”

Bitcoin’s value has surged in the past 5 years — it was just $600 in May 2016. But it hasn’t quite reached six figures yet. The highest it has been was around $83,000 earlier this year.

“You can’t buy things with Bitcoin”

Although Musk opened up Tesla to accept Bitcoin earlier this year then withdrew that capability just last week, there are still many businesses that will accept it.

There are even Australian services like Living Room of Satoshi that allow you to receive a portion of your salary as Bitcoin.

“There are physical Bitcoins”

Even though 22% of Australians believe there are Bitcoin coins or notes, this is entirely false. The currency exists exclusively in digital form using blockchain technology.

More reading

• Here are the US shares ASX investors were buying last week
• If Bitcoin investing isn’t risky enough for you, try this
• 3 explosive shares that defy PE ratios
• Bitcoin’s next step forward aims to address adoption hurdles
• Why these 3 experts aren’t worried about the tumbling Bitcoin price

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 recommends Bitcoin and Tesla. 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.

The post 56% of Aussies think Elon Musk invented Bitcoin appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2SW1Sil

The United Malt Group Ltd (ASX: UMG) share price is on the rise today. At the time of writing, shares in the agribusiness are selling at $4.50 – up 1.81%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is a massive 1.52% lower.

Today’s price increase comes after the company released its half-year results for the 6-months ending 31 March 2021.

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

Half-year update

In a release to the ASX, United Malt disclosed net profit after tax was down an astonishing 54% on the prior corresponding period (pcp) to $13.2 million. Revenue was 11% lower than the pcp at $589.6 million. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 32% on the pcp to $52.7 million.

Earnings per share (EPS) plunged 41% to 4.4 cents. The company will pay an interim dividend of 2 cents per share, unfranked. That’s down 49% from the final dividend paid in December last year. Net debt also increased to $344.1 million from $261.7 million on 30 September 2020

Despite the slide in profits, United Malt says today’s results are still higher than the earnings guidance released at its AGM. This is presumably why the United Malt share price is lifting today.

In another statement, the company attributed today’s lower numbers to the effects of COVID-19 lockdowns and the prior results being announced when it was not a standalone ASX-listed business. GrainCorp Ltd (ASX: GNC) spun off United Malt Group in March last year. In addition, it says its margins were also affected by an increasing Australian dollar and higher freight and shipping costs compared to the pcp.

Looking forward, United Malt says it expects sales volumes to still be below pre-COVID levels. The company attributes this to the high uncertainty that still exists in the northern hemisphere regarding the pandemic. 

Management commentary

Speaking on today’s results, United Malt Managing Director and CEO Mark Palmquist said the following:

Continued COVID-19-related lockdowns in our key markets of North America and the UK affected volumes and mix during the half from the ongoing effects of the reduction in on-premises alcohol consumption.

As we foreshadowed at the AGM, the lockdown impacts on volume and mix, together with the effects of the higher Australian dollar during the period and one-off costs affected the first half result.

While we are seeing emerging signs of reopening in some of our key markets, we remain prepared for the varying impact of the pandemic on customer demand, supply chains and our operations in the short term.

At the same time, we continue to implement our strategy to strengthen the business to capitalise on growth opportunities and sustainability priorities over the medium term.

He added that planned initiatives by the company should result in around $30 million of annualised benefits.

United Malt share price snapshot

Over the past 12 months, the United Malt share price has increased by around 11%. Over the last 3 months, however, it has increased by an even greater 21%.

Given its current valuation, United Malt has a market capitalisation of approximately $1.3 billion.

More reading

• 2 sleeping ASX shares ready to break out

Motley Fool contributor Marc Sidarous 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.

The post United Malt Group (ASX:UMG) share price jumps on half-year results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2S9tj7V

The Infratil Ltd (ASX: IFT) share price is slipping today, down 0.3% in morning trade as the wider S&P/ASX 200 Index (ASX: XJO) is down 1.7%.

Below we take a look at the infrastructure investment company’s full year results for the year ended 31 March.

What full year results did Infratil report?

Infratil’s share price is slipping despite the company reporting an increase in proportionate earnings before interest, tax, depreciation, amortisation and fair value adjustments (EBITDAF).

Proportionate EBITDAF from continuing operations climbed to NZ$398.8 million (AU$369.3 million) for the year, up from NZ$370.2 million from the previous year.

(Proportionate EBITDAF shows Infratil’s operating costs and its share of the EBITDAF of the companies it has invested in. It excludes discontinued operations and management incentive fees.)

Infratil said that COVID had negatively impacted its Wellington Airport and Vodafone New Zealand assets. But this was mitigated by 25% growth in its CDC Data Centres earnings.

Unrealised energy derivative losses at Trustpower and increased management incentive fees drove Infratil’s share of the net loss for the year to NZ$49.2 million. The company said this reflects valuation increases not recognised for accounting purposes.

Acquisitions and investments

Over the full year Infratil and its portfolio businesses invested NZ$250 million in digital infrastructure and technology, NZ$590 million in renewable energy, and NZ$310 million for the acquisition of 56.25% of Australian based Qscan Group to initiate a new diagnostic imaging platform.

Following the acquisition of Qscan, Infratil announced it had also entered into an unconditional agreement to acquire 53.5–58.5% of Pacific Radiology. The cost will be in the range of NZ$312–344 million.

Commenting on the acquisitions, Infratil CEO Jason Boyes said:

[The acquisitions] create a meaningful Australasian healthcare platform with a number of potential synergies and adjacent opportunities. The purchases also confirm our continuing confidence in thematics which are driving our capital allocation in communications and digital infrastructure, decarbonisation, and aging populations.

Infratil reported it will have net cash of more than NZ$1 billion for investment following the acquisition of Pacific Radiology and receipt of the Tilt Renewables Ltd (ASX: TLT) sale proceeds.

Returns and dividends

Infratil reported “total shareholder return for the year was 91.9%, comprising 4.3% after tax dividend return and 87.6% capital gain, including the rights issue”.

The company has declared a final dividend of 11.5 NZ cents per share. That’s up 4.5% from the previous year.

Infratil said it will provide full details of its potential new offer of unsecured, unsubordinated fixed rate Infrastructure bonds at the end of May.

Looking ahead, the company’s guidance for the year ending 31 March 2022 is for a proportionate EBITDAF of NZ$470–520 million. That figure excludes Tilt Renewables and Pacific Radiology.

Infratil share price snapshot

Over the past 12 months, Infratil shares have gained 53%, outpacing the 25% gains posted by the ASX 200.

Year-to-date the Infratil share price has slipped, down 5% so far in 2021.

More reading

• Why the Infratil (ASX:IFT) share price is in focus

Motley Fool contributor Bernd Struben 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.

The post What’s happening with the Infratil (ASX:IFT) share price? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2QvlF7v

The EML Payments Ltd (ASX: EML) share price has returned from its trading halt and is crashing lower.

In morning trade, the payments company’s shares are down a massive 52% to a 52-week low of $2.47.

Why is the EML Payments share price crashing lower?

Investors have been selling the company’s shares this morning after it revealed that its Irish regulated subsidiary, PFS Card Services Ireland Limited (PCSIL), has received correspondence from the Central Bank of Ireland raising significant regulatory concerns.

According to the release, the central bank’s concerns relate to PCSIL’s Anti-Money Laundering / Counter Terrorism Financing (AML/CTF), risk and control frameworks, and governance.

The correspondence states that the central bank is inclined to issue directions to PCSIL pursuant to section 45 of the Central Bank (Supervision and Enforcement) Act 2013.

There are a number of possibilities in this section, one of which is the revoking of its financial service provider authorisation.

Is this a big deal?

As you might have guessed from the EML Payments share price reaction today, this could potentially be a very big deal.

Following Brexit, EML Payments moved the European operations of its Prepaid Financial Services to Ireland. As a result, during the third quarter of FY 2021, the company estimates that approximately 27% of its global consolidated revenue derived from programs operating under PCSIL’s Irish authorisation.

The central bank has invited PCSIL to provide it with submissions in relation to the concerns. The company advised that it intends to do so by 27 May 2021.

In the meantime, the central bank and PCSIL are in close dialogue regarding the concerns raised. Furthermore, PCSIL is working with the bank to assist it with receiving information and documentation relevant to its concerns.

EML concluded: “EML welcomes the opportunity to engage more closely with the CBI in relation to the matters raised and PCSIL’s business model more generally. EML is committed to cooperating with the CBI and is taking steps to address concerns raised.”

FY 2021 guidance

Failing to give the EML Payments share price a lift today an update on its guidance. 

The release explains that, excluding any potential costs relating to the above, EML Payments is on course to achieve its guidance in FY 2021.

This will mean underlying revenue in the range of $180 million to $190 million and underlying net profit of $30 million to $33.5 million.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Why the EML Payments (ASX:EML) share price is in a trading halt
• Fund managers have been buying EML Payments (ASX:EML) and this ASX share
• Little ASX software share to explode once everyone wakes up: fundie

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 recommends EML Payments. The Motley Fool Australia has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the EML Payments (ASX:EML) share price is crashing 52% lower appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uZme8N

The Webjet Limited (ASX: WEB) share price is on the move on Wednesday morning following the release of its full year results. This follows the company’s decision to shift its financial year to end on 31 March.

At the time of writing, the online travel agent’s shares are down 1% to $4.60.

How did Webjet perform in FY 2021?

It is no secret that Webjet has been struggling greatly because of the pandemic. In light of this, it will come as no surprise to learn that the company is reporting a significant decline in revenue and a sizeable loss for the nine-month period ending 31 March.

According to the release, Webjet recorded total transaction value (TTV) of $453 million and revenue of $38.5 million in FY 2021. This compares to TTV of $3,021 million and revenue of $266.1 million during the 12 months of FY 2020.

This means that Webjet was operating with a TTV/revenue margin of 8.5% in FY 2021, which is only down slightly from 8.8% in FY 2020.

And despite cutting its underlying expenses down to $94.8 million, compared to $238.5 million in FY 2020, this wasn’t enough to stop the company from recording a sizeable $56.3 million underlying operating earnings loss.

On the bottom line, the company recorded an underlying loss of $88.8 million. This is an increase from an underlying loss of $42.3 million during the 12 months of FY 2020.

Nevertheless, the company has the balance sheet strength to handle this. At the end of the period, Webjet had $431 million pro forma cash on hand. It also notes that its term debt maturity has now extended to November 2023, which it feels gives it a significant runway.

Trading update

Failing to give the Webjet share price a boost this morning was an upbeat update on its performance during the month of April. Management notes that as markets reopen, its businesses are rebounding quickly.

For example, during April, Webjet OTA Australian domestic bookings were 95% of April 2019 levels, WebBeds USA TTV was at 83% of April 2019 levels, and Online Republic bookings were 48% of April 2019 levels.

Management commentary

Webjet’s Managing Director, John Guscic, said: “We are hopeful that vaccine rollouts will allow travel markets to reopen and continue to do everything we can to make sure we are optimally positioned to capture the significant global B2B market opportunity and accelerate bookings growth in our B2C businesses.”

“We know there is strong demand for travel – we’ve seen that with the performance of Webjet OTA, with Australian domestic bookings reaching 95% of pre- Covid bookings in April. Webjet OTA has always had a key strength in servicing the domestic leisure market and our ability to scale costs in line with demand meant it was profitable as soon as borders opened.

“The Australian and New Zealand domestic borders remaining opened also meant we saw Online Republic return to profitability in April and believe there is considerable scope for that business as global leisure markets reopen.

While WebBeds continues to be impacted in most regions, we know that once borders do open, our businesses rebound. We’re already seeing that in North America. The US is among the first to reopen and WebBeds is already at 83% of pre-Covid TTV in that market. WebBeds is committed to emerging from Covid as the #1 global B2B provider and we are confident our transformation initiatives will materially reduce costs across the business. As such, we have increased WebBeds’ profitability target to 8/3/5 once the business is back at scale,” he added.

Outlook

Webjet notes that there is strong pent-up demand for travel. This is particularly the case for leisure travel.

Pleasingly, management believes it is well positioned to capture the pent-up demand after transforming all of its businesses to be ready to capitalise when global travel returns.

It also points out that the structural shift from offline to online continues to accelerate, with all its businesses positioned to capture demand through the medium.

Mr Guscic commented: “While we wait for markets to open, we have not stood still. We have taken the opportunity to transform our business to be ready for the recovery. We have looked at ways to be more agile, lean and efficient across the entire business – from service and quality, to operating and marketing, to capital strength, and management restructuring. We have created a global platform that will reduce costs at scale by at least 20% and provide the structural support to focus on those markets that will rebuild fastest, where competitors are weakest, and we can target the #1 position.”

“We see a world of opportunity. We know people cannot wait to travel – to reunite with families and loved ones, to embark on adventures and to explore the world. Webjet has significant cash reserves, we have a team that’s always been agile and hungry to win, and we are ready to go,” he concluded.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• The Webjet (ASX:WEB) share price is down 11% this week: Is it time to buy?
• To sell or not to sell? 3 brokers weigh in on Webjet (ASX: WEB) shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Webjet (ASX:WEB) share price lower after FY 2021 results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bCgiL9

The Kathmandu Holdings Ltd (ASX: KMD) share price will be one to watch on Wednesday morning. This follows the retail company’s announcement that it has reshaped its leadership team. 

At yesterday’s market close, the Kathmandu share price was trading at $1.49.

Kathmandu designs and retails clothing, footwear, and equipment for surfing and the outdoors. Its brands include Kathmandu, Oboz and Rip Curl.

What changes did Kathmandu make?

In today’s release, Kathmandu advised it has appointed a new Group CEO and managing director to lead its businesses.

The appointment of Rip Curl CEO Michael Daly to the position will see him take over the reins from outgoing CEO Xavier Simonet.

After more than 5 years at the group helm, Mr Simonet has stepped away from Kathmandu to become the new CEO of Australia’s trade and investment commission, Austrade. 

Mr Daly’s role will come into effect immediately, as Kathmandu now seeks to find a successor for Rip Curl.

Kathmandu chair David Kirk welcomed the new appointment, saying:

After an extensive international search, I am delighted to announce that Michael Daly will be the new Group CEO of Kathmandu Holdings. Michael has led Rip Curl for 8 years with a relentless focus on brand, product, people and the bottom line and we are confident he will bring the same focus and energy to the wider group.

Incoming CEO Michael Daly added:

This is an exciting next step for me. The group has a portfolio of outstanding brands in Kathmandu, Rip Curl and Oboz and I am looking forward to leading three great teams as we work together to grow and develop the group.

About the Kathmandu share price

The Kathmandu share price has trekked higher over the past 12 months, increasing more than 60%. Year-to-date performance has also climbed, giving investors a gain of around 25%.

Based on valuation metrics, Kathmandu presides a market capitalisation of roughly $1 billion, with approximately 709 million shares on issue.

More reading

• Why these ASX shares just raced to 52-week highs

Motley Fool contributor Aaron Teboneras 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.

The post Why the Kathmandu (ASX:KMD) share price is in focus today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/33VC4oW

The Appen Ltd (ASX: APX) share price is on watch this morning after providing a trading update and announcing a restructuring to the market.

This restructuring is aimed at aligning to the company’s product-led and consumer-centric strategy, as well as changes to financial reporting to give greater visibility to the drivers and performance of the business.

Appen says that the changes reflect its evolution to become a broader range of AI data annotation products and solutions.

The new structure and reporting

Its new organisation structure will have four customer-facing business units – global, enterprise, China and government.

The global unit will focus on providing data annotation services and products to major US global tech customers.

Appen’s enterprise unit will be responsible for driving growth outside of its global customers by leveraging its product suite to serve new customers and AI use cases.

The China and government units will continue to try to capture market share in those high-growth markets.

Appen said that the new leadership structure, combined with profit and loss responsibility, will increase performance.

Management believe that the organisation alignment and technology-enabled productivity will allow resources to be optimised for the company’s future needs.

The tech company also said that there’s going to be new segment reporting for investors to get a better understanding on performance, growth and market dynamics.

There’s two segments – ‘global services’ for the services provided to global customers using data annotation tools and ‘new markets’ for global customers using annotation products and the enterprise, government and China businesses.

Reporting will be in US dollars, to enable easier comparison of financial performance between periods.

Appen CEO Mark Brayan said:

            Our new structure will drive performance and growth by aligning our business with market opportunities and customer needs. Value will be created by pursuing product-led expansion and by giving teams end-to-end responsibility and control over delivery for their customers.

Appen trading update

The company’s year to date revenue plus orders in hand for delivery in FY21 is approximately US$260 million at the end of April 2021. Appen said this US dollar figure was consistent with the same methodology and timing used for the update provided at the annual general meeting in May 2020.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between US$83 million to US$90 million. This is the guidance provided to the market at its FY20 result that was given out in February.

More reading

• These ASX tech shares are down 50% from their 52-week highs
• The Appen (ASX:APX) share price is 75% lower than its 52-week high
• ASX 200 Weekly Wrap: After record high, ASX dips on inflation fears
• Has COVID-19 killed the ASX WAAAX shares?
• Is the Appen (ASX:APX) share price a bargain or should you wait?

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen 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.

The post Appen (ASX:APX) share price on watch with restructuring appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2Rlu6mx