Tag: Motley Fool

The Schaffer Corporation Limited (ASX: SFC) is climbing today, after the diversified industrial company reported upbeat results for its first-half FY21 trading period.

At the time of writing, the Schaffer share price is trading up 5.6% at $18.49.

What’s moving the Schaffer share price today?

In today’s release, Schaffer announced a statutory net profit after tax (NPAT) for the first-half FY21 of $22 million. This is an increase from the $13.9 million reported for the same period in FY20.

The $22 million includes a $10 million non-cash and unrealised gains on equity investments, primarily its investment in the ASX-listed Harvest Technology Group Ltd (ASX:HTG).

On the operational side, Schaffer says its automotive leather division experienced strong sales volumes in the half. This was driven by the launch of new vehicle programs in Europe and China. The company did not provide figures on the sales.

Schaffer expects to pay an interim fully franked dividend of 45 cents per share for the half, to be confirmed and formally announced on 17 February after the results have been audited.

About the Schaffer Corporation

Schaffer is a diversified industrial company with core operations in building materials, automotive leather and property.

The automotive leather division is the largest and generates around two-thirds of revenues, with the other third split between its building materials business and investments.

In its full years results for FY20 announced in August, the company reported an NPAT of $23.6 million, up from $22.9 million in FY19.

About the Schaffer share price

Including today’s gains, the Schaffer share price has risen by 22% over the last 12 months.

The company paid a fully franked dividend of 80 cents per share for the full FY20.

Schaffer commands a market valuation of $238 million.

More reading

• Why is the Harvest Technology (ASX:HTG) share price rising?

Motley Fool contributor Eddy Sunarto 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 The Schaffer (ASX:SFC) share price has surged 5% higher today. Here’s why. appeared first on The Motley Fool Australia.

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

There’s no denying 2020 was a tough year for the Vicinity Centres (ASX: VCX) share price. Shares in the Aussie real estate investment trust (REIT) have slumped 38% in the last 12 months to $1.55 per stapled security.

So, what’s driving the REIT’s shares lower?

Why has the Vicinity Centres share price slumped lower?

The coronavirus pandemic had a big impact on retail real estate valuations in 2020. Tightening restrictions across the country reduced foot traffic and in-store sales for major shopping centres.

Vicinity Centres is one of the largest REITs in the country with major assets including Chadstone (Melbourne) and Chatswood Chase (Sydney).

As COVID-19 restrictions kicked in throughout 2020, brick-and-mortar retail fell on hard times. Work from home orders saw vacancy rates soar while a new National Code of Conduct for commercial tenancies impacted on rent collections.

This saw the Vicinity Centres share price crash lower in 2020, starting with the March bear market.

However, it’s not all doom and gloom for the Aussie REIT and its investors. Shares in the retail REIT have climbed 28.1% higher since the end of October to trade at $1.55 per stapled security.

What about the other Aussie REITs?

Shares in Vicinity Centres’ fellow ASX retail REITs have also struggled to make gains over the last year.

The Scentre Group (ASX: SCG) share price is down 29.5% in the last 12 months while SCA Property Group (ASX: SCP) shares are down in the last 11.3% to $2.43 per share.

What’s the outlook for 2021?

No one knows for sure what lies ahead in 2021, particularly given the new strains of COVID-19 and a looming vaccination push.

However, Moody’s Investors Service is anticipating the retail sector will remain “subdued” with downside risks emerging for office REITs.

Industrial assets are tipped by Moody’s to be best placed for growth in 2021 given strong demand for logistics and data centres.

More reading

• What’s in store for the Scentre (ASX:SCG) share price in 2021?
• Investors caught in crossfire as ASX retailers battle ASX property stocks in 2021
• These were the worst performing ASX 200 shares last week
• The ASX sectors hardest hit by COVID-19 in 2020
• The Unibail Rodamco Westfield (ASX:URW) share price has dipped 3% today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Shopping Centres Australasia Property Group. 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 Vicinity Centres (ASX:VCX) share price is down 38% in 1 year appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sdVYq5

In morning trade the S&P/ASX 200 Index (ASX: XJO) has defied the weakness on Wall Street and is edging higher. The benchmark index is currently up 0.1% to 6,703.4 points.

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

ARB Corporation Limited (ASX: ARB)

The ARB share price is up 5.5% to $33.42. Investors have been buying the 4×4 accessories company’s shares following the release of its guidance for the first half. Based on preliminary and unaudited management accounts, ARB expects to report a 21.6% increase in sales to $284 million and profit before tax of $70 million to $72 million. While its profits include $9.8 million of non-recurring government assistance, even including this, it is up materially on the prior corresponding period’s profit before tax of $34.4 million.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is up a further 4% to $2.66. Investors have been buying the biotech company’s shares after it finally released some good news. On Monday Mesoblast announced that its rexlemestrocel-L drug provides a reduction in heart attacks, strokes, and cardiac death in patients with chronic heart failure.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price has stormed 5% higher to $1.57 following the release of a trading update. That update revealed that Pushpay’s performance has been stronger than expected, leading to another guidance upgrade. Instead of EBITDAF of between US$54 million and US$58 million, management is now forecasting FY 2021 EBITDAF of between US$56 million and US$60 million. This will be up 123% to 139% year on year. Pushpay also announced the appointment of its new CEO, Molly Matthews.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price has surged 5.5% higher to $11.58. This is despite there being no news out of the retail group. However, investors may believe that the company’s Super Cheap Auto business is benefiting from the same tailwinds that led to ARB recording strong profit growth in the first half.

More reading

• Why the ARB (ASX:ARB) share price is charging 6% higher today
• Why the Pushpay (ASX:PPH) share price could shoot higher today
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 drops 0.9%
• Mesoblast (ASX:MSB) share price soars 14% on clinical trial results

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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended ARB Limited and PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why ARB, Mesoblast, Pushpay, & Super Retail shares are racing higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q8zdC4

The Nearmap Ltd (ASX: NEA) share price has climbed 3.5% this morning, currently trading at $2.07.

This follows a broker upgrade on the aerial imagery provider from RBC Capital Markets.

What did the broker say?

As noted by the Australian Financial Review, RBC Capital Markets has upgraded its view on Nearmap shares from ‘sector perform’ to ‘outperform’.

According to the broker:

We believe Nearmap is on track to print improved customer churn numbers at its February 2021 result… Improved churn demonstrates the product suite resonates with customers and has been resilient in a COVID environment.

RBC Capital highlighted that with a $100 million in net cash, Nearmap’s cash position is strong. And the broker forecasts that customer churn will fall from 9.9% as at the end of June 2020 down to a 7–8% range.

The broker is also unconcerned over the impact of a rising Aussie dollar, which has gained 10% against the greenback in the last 6 months:

The US is approaching around 40 per cent of annualised contract value (ACV), which is a headwind at the ACV line but assists at an earnings perspective as the US is loss-making while the ANZ business is profitable.

Nearmap share price and company snapshot

Nearmap provides high resolution aerial imagery technology and location data for companies and government customers across Australia, the United States, Canada and New Zealand. Its technology allows customers to conduct detailed virtual site visits instead of having to fly to and over the locations in person. Nearmap listed on the ASX in 2000.

At the company’s annual general meeting in November, Nearmap forecast ACV growth for the 2021 financial year in the range of 20–40%. At the time, Nearmap’s CEO Rob Newman said:

People still need to insure homes, local governments still have to provide services and people’s roofs still need to be fixed… The capital raise in September is setting us up to accelerate growth and we see fiscal 21 as the way to build the foundation to scale rapidly.

We’re seeing this year as a foundational year to return to 20 per cent to 40 per cent year-on-year growth.

2021 hasn’t been off to a great start for Nearmap shareholders, with the share price down 11.9% year-to-date at the closing bell yesterday. That compares to a 0.1% gain for the broader All Ordinaries Index (ASX: XAO).

With this morning’s gains tallied in, the Nearmap share price is down 9.3% since 4 January.

More reading

• These were the worst performers on the ASX 200 last week
• ASX 200 down 0.85%: ANZ CFO resigns, tech shares tumble, iron ore jumps
• 2 ASX tech shares to buy for 2021
• 3 exciting ASX tech shares to buy in 2021
• 5 things to watch on the ASX 200 on Tuesday

Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. 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 Nearmap (ASX:NEA) share price is climbing today appeared first on The Motley Fool Australia.

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

After languishing at around 4 cents a share for the first half of last year, the Pointerra Ltd (ASX: 3DP) share price took off last July after the ASX technology company announced a significant investment from well-known Australian tech entrepreneur, Bevan Slattery.

Slattery is a kingmaker in Australian tech circles, having founded Nextdc Ltd (ASX: NXT), Megaport Ltd (ASX: MP1), and Superloop Ltd (ASX: SLC).

Slattery’s placement was for 50 million shares at 5 cents each, raising $2.5 million for the company. Since then, the Pointerra share price has exploded, skyrocketing 900% to 50 cents. It briefly touched on a 52-week high of 67 cents.

What does Pointerra do?

Pointerra’s technology helps clients manage, visualise, and analyse extremely large and complex 3-dimensional geospatial datasets.

This sounds like complicated jargon but is actually pretty simple. Mining, infrastructure, and many other companies need to analyse sites in significant detail before commencing construction or excavation operations. Previously, analysing extremely large 3D datasets would require a significant amount of computing power.

However, Pointerra’s data-as-a-service (Daas) business model allows companies to outsource these complex data operations. Clients can transfer (either online or via a physical hard drive) their geospatial data to Pointerra, and Pointerra will host their data for them. The data is then stored on the cloud and is accessible via a web browser from just about any device, anywhere in the world.

The amount of money Pointerra charges its clients depends on the amount of data hosted for each client. It also depends on the service performed. As well as simply hosting the data on the cloud, Pointerra can process data and perform analytics. It also operates a 3D data marketplace, connecting buyers and sellers of 3D data and charges commissions on these transactions.

Why did Slattery invest?

In the company announcement released to the market back in July 2020, Slattery stated that he viewed Pointerra as having the “potential to be a world leader in (3D geospatial analysis) and ultimately to help feed the geospatial systems behind industries including telecommunications, renewable energy, and autonomous vehicles.”

Slattery’s comments not only show the faith he has in Pointerra as a company, but also the wide breadth of applications for geospatial analysis technology, particularly in developing industries like autonomous vehicles.

More recent news out of the company

In its most recent market update, released towards the end of November 2020, Pointerra reported that its annual contract value had increased to US$5.82 million, an uplift of 18% since the company’s previous business update on 15 October 2020. The growth had come courtesy of new and existing companies across a broad range of sectors in both Australia and the US.

At the time of writing, the Pointerra share price is sitting at 50 cents a share, giving the company a market capitalisation of $338.72 million.

More reading

• This is the latest speculative ASX tech buy from Citigroup
• 2 more small cap ASX shares to watch in 2021
• 5 exciting small cap ASX shares to watch in 2021
• 2 exciting small cap ASX shares growing rapidly

Rhys Brock owns shares of Pointerra Limited, MEGAPORT FPO and NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointerra Limited and SUPERLOOP FPO. The Motley Fool Australia has recommended MEGAPORT FPO and Pointerra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Pointerra (ASX:3DP) share price has skyrocketed 900% since July appeared first on The Motley Fool Australia.

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

The Avita Medical Inc (ASX: AVH) share price has climbed this morning, after the company reported a 57% increase in revenue in its preliminary fiscal second-quarter estimates.

At the time of writing, the Avita share price is up 2% to $4.95.

What did Avita announce?

In its second-quarter estimates for FY21 ending 31 December 2020, the company advised that total global revenues will be $5.1 million. This is the same as the previous quarter and 57% higher than the prior corresponding period in FY20.

The vast majority of the revenue came from the sales of its RECELL product in the United Sales, which accounted for $5 million during the quarter. That number is also the same as the previous quarter, but represents a $1.9 million or 62% increase over the same quarter of FY20.

The company’s balance sheet remains liquid, with cash in hand of approximately $59.8 million – a decrease of $6.0 million or 9% over the $65.8 million held at the end of the previous quarter.

On the commercial side, Avita signed up 7 new accounts in the second quarter, bringing its total client numbers to 93.

The company continues to make progress in its RECELL product, enrolling 9 additional patients to support its study in assessing the use of RECELL to treat stable vitiligo. Vitiligo is a skin condition that results in patches of skin losing pigment.

Quick recap of Avita’s RECELL flagship product

The company’s business revolves around the rollout of its RECELL technology product in the United States.

RECELL basically aims to replace the traditional skin graft procedure in patients with burns injury.

The device helps surgeons use a small sample of a patient’s own skin to produce a suspension of spray-on skin cells, which can then be applied to a patient’s burn site in as little as 30 minutes to regenerate a new outer layer of skin.

The procedure uses less than 5% of the size normally required in a graft, and has been clinically demonstrated to heal the burn site as effectively as a skin graft.

Avita is currently conducting clinical trials in its bid to expand the usage of RECELL to patients outside of the burn centres.

About the Avita share price

The Avita share price has lost about 63% over the last 12 months. The company is dual listed on the Nasdaq and commands a market cap of $330 million.

More reading

• 2 small cap ASX shares growing at a rapid rate
• Leading broker names the ASX healthcare shares to buy in 2021
• Why did the Avita (ASX:AVH) share price dive 60% in 2020?
• Why AVITA, IDP Education, Over the Wire, & Viva Energy shares are dropping lower
• These are the 10 most shorted shares on the ASX

Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. 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 Avita Medical (ASX:AVH) share price is rising this morning appeared first on The Motley Fool Australia.

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

The Plenti Group Ltd (ASX: PLT) share price is rising this morning after the fintech company announced another solid quarterly update, in which it reported record loan originations.

At the time of writing, the Plenti share price is up by 2.13% to $1.20.

What moved the Plenti share price today

The company has released an update on its third-quarter FY21 trading results for the period ending 31 December 2020.

It reported record loan originations of $130.9 million, which is 58% above prior corresponding period, and 22% above the prior quarter. Record monthly loan originations were achieved in six consecutive months, from July 2020 all the way to December 2020.

As in the previous half, growth was led by automotive lending, which is up by 273% on the prior corresponding period. Renewable energy and personal loan originations were also up by 19% and 8%, respectively, with both portfolios continuing to recover from the COVID-19 disruptions.

The increase in loans has brought Plenti’s total loan portfolio to $508 million, up by 46%. The $500 million milestone is the first for an Australian fintech consumer lender, according to the company.

On the funding side, Plenti upsized its secured automotive loan warehouse facility to $275 million from $150 million during the quarter. It also established a new $100 million warehouse funding facility to support growth in renewable energy, as well as personal loan originations.

The company advised that its credit performance is strong and leads the industry, with low levels of losses and 90+ day loan payment arrears declining to 0.32%.

Strong first half

Today’s solid quarter update follows a strong half, where Plenti delivered ahead of prospectus forecasts on all key financial metrics.

In the half ending 30 September 2020, the company reported a revenue of $26 million, representing growth of 41% on the prior corresponding period and 2% ahead of prospectus forecast.

It also achieved record loan originations of $167.0 million for the half, 33% above the first half of FY20 and 7% ahead of its prospectus forecast.

About the Plenti share price

Plenti first listed on the ASX on 23 September 2020 at an offer price of $1.66. On its ASX debut, the Plenti share price had a shocker, closing the day at $1.30, down 21% from its listing price.

At the current share price, the company is still down almost 30% from its initial public offer (IPO) price.

Plenti commands a market capitalisation of $198 million.

More reading

• Why the ARB (ASX:ARB) share price is charging 6% higher today
• Altium (ASX:ALU) share price slips following trading update
• Why the PolyNovo (ASX:PNV) share price is sinking 10% lower today
• Here’s why the Creso Pharma (ASX:CPH) share price is jumping 13% higher today
• The biggest ASX bulls are about to get their faith tested

Motley Fool contributor Eddy Sunarto 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 Plenti (ASX:PLT) share price climbs after another solid update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38Cm1Q9

The ARB Corporation Limited (ASX: ARB) share price has been a strong performer on Tuesday.

In morning trade the 4×4 accessories company’s shares are up 6% to $33.57.

This leaves the ARB share price trading just a touch short of its all-time high.

Why is the ARB share price charging higher?

Investors have been buying the company’s shares this morning after it released an update on its expectations for the first half of FY 2021.

According to the release, ARB achieved unaudited sales revenue of $284 million for the first half. This represents a 21.6% increase on the prior corresponding period.

In respect to profits, based on preliminary and unaudited management accounts, the company expects to post a profit before tax within the range of $70 million to $72 million. This is inclusive of $9.8 million of non-recurring government benefits.

Even excluding the one-off COVID support, this would still be a massive increase on the prior corresponding period. In the first half of FY 2020, ARB recorded a profit before tax of $34.4 million on revenue of $234.1 million.

No explanation was given for the outperformance. However, a strong Australian dollar (versus the Thai baht) is likely to have helped with its manufacturing costs.

What about the full year?

No guidance has been provided for the remainder of the financial year. However, management notes that the short term looks positive.

It commented: “The Company maintains a positive short-term outlook based on a strong customer order book and another record sales month in December 2020.”

Though, it has warned investors not to get carried away with its impressive first half performance.

“The Company’s first half performance should not be used as an indicator for the second half of the financial year, for which no guidance can be provided, as it remains far too uncertain to predict in the current economic climate,” it warned.

Further details on how it is performing early in the second half are expected to be given with its half year results release on 16 February.

More reading

• Brokers name 3 ASX shares to buy right now
• Brokers just upgraded the Sonic (ASX:SHL) share price and this other ASX stock to “buy”

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. 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 ARB (ASX:ARB) share price is charging 6% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2K8UgVS

The Altium Limited (ASX: ALU) share price has dropped in early trade today after the software company released a mixed trading update to the market.

At the time of writing, the Altium share price is trading down 3.% at $29.85.

What did Altium announce?

Altium advised it will meet its full-year guidance target, despite major disruptions caused by COVID-19.

For the first half of FY21 ending 31 December, Altium expects to deliver revenue of around US$89.6 million. This is a drop of 3% on the prior corresponding period.

The company revealed that its United States business recorded a 10% fall in revenue due to rising coronavirus cases. Severe COVID-19 lockdowns cross the Atlantic are also impacting revenue growth, with Altium’s European segment is also experiencing a drop in sales.

The company’s NEXUS solution suffered a 14% fall in growth as deals were pushed back for the second-half of the year. Altium is expecting a significant pipeline from this coming into the new period.

In China, revenue plummeted 15% as licence compliance activities become more difficult to achieve, especially in the lower-end of the market.

Negative news aside, Altium said other areas of the business have been performing well.

Board and Systems revenue improved in the second quarter to be in line with the previous 2020 half-year performance. This is after the company saw a 11% setback on first-quarter revenue compared to year-on-year.

Electronic manufacturing also strongly rebounded with its Octopart search engine attaining a 19% increase in revenue for the first half of FY21. The company said this was a leading indicator for future sales of PCB design.

In addition, term-based licences grew, up 166% over the first-half on the same period last year, resulting in a US$1 million revenue decline.

Altium will release its half-year results on 15 February, 2021. The company advised it was confident it would achieve a better second-half result, and reaffirmed its full-year guidance.

Words from the CEO

Commenting on the results, Altium CEO Aram Mirkazemi said:

Despite a challenging first half, we saw signs of recovery in Q2. This result was achieved despite extreme conditions in the US and the restructuring of our sales organisation.

I am confident that with our pivot to the cloud and our move to digital sales that the Q2 momentum will continue into the second half.

How has the Altium share price performed?

The Altium share price has been on a rollercoaster over the past 12 months. The company’s shares reached a 52-week high of $42.76 in February, before falling to a low of $23.11 in March.

Most recently, its shares have dipped lower this year off the back of the weakening tech sector in the United States.

More reading

• 3 fantastic ASX shares to buy today
• 3 ASX growth shares to buy right now
• What this broker thinks of the Altium (ASX:ALU) share price
• ASX 200 rose 1.6%
• 3 mid cap shares hitting 1-month lows on the ASX today

Aaron Teboneras 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 Altium. 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 Altium (ASX:ALU) share price slips following trading update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q903Ko

The PolyNovo Ltd (ASX: PNV) share price is on the move on Tuesday following the release of a trading update.

In morning trade the medical device company’s shares are down a disappointing 10% to $3.04.

What did PolyNovo announce?

PolyNovo’s update revealed that the company delivered a 31% increase in sales over the prior corresponding period for the first half of FY 2021.

This was driven largely by a 75% increase in sales during the first quarter, which was offset slightly by slower than expected sales in October and November.

Pleasingly, this softness appears to have ended, with the company’s December sales growing strongly and coming in ahead of expectations in the US, New Zealand, and Taiwan markets.

In respect to the key US market, PolyNovo’s sales grew 41% during the first half. It is aiming to build on this in the second half with the help of recent appointments.

During the half, PolyNovo hired 12 experienced and dedicated Territory Managers and one sales director in the country. It also notes that it received more requests for proposal (RFP) in the last three months than in the previous nine months, signed two GPOs, and a number of large strategic hospitals.

Management commentary.

PolyNovo’s Chairman, David Williams, revealed that COVID-19 had impacted its performance during the first half.

He said: “While we have experienced a few bumps from COVID-19, we have built a significant base of new customers which holds us in a strong position. We will continue to expand our customer base which will enhance our success as the pandemic eases.”

The company’s Managing Director, Paul Brennan, acknowledges that the near term will be volatile, but remains very positive on the long term.

He commented: “In the short-term forecasting sales will be challenging particularly in the US, however the medium-term outlook is strong, and we continue to see surgeons using and referring NovoSorb BTM to their peers. Once hospitals have more capacity, we will see US and UK sales accelerate just as we have seen in New Zealand and Australia. New geographies offer good opportunities for NovoSorb BTM.”

More reading

• These were the worst performing ASX 200 shares last week
• 3 mid cap shares hitting 1-month lows on the ASX today
• Are these 4 ASX medical shares set for a healthy 2021?
• ASX 200 drops 1.1%
• Here’s why the PolyNovo (ASX:PNV) share price zoomed 97% higher in 2020

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 POLYNOVO 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.

The post Why the PolyNovo (ASX:PNV) share price is sinking 10% lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/35vIWdW