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It hasn’t been a great day for Western Areas Ltd (ASX: WSA) shareholders as its shares have tumbled drastically lower.

The company released an announcement revising its FY21 guidance, sending shares in the nickel miner down 17.74% to $1.92. In comparison, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.2% weaker at 13,404 points.

Let’s take a closer look at what growth Western Areas is forecasting for the financial year.

Revised guidance

Western Areas revised its FY21 guidance following the review of the production outcomes, and mine rescheduling completed at Flying Fox.

The company updated its nickel tonnes in concentrate production with a forecast of 17,000 to 19,000 tonnes. This is a decrease on the original 19,000 to 21,000 tonnes that was predicted for FY21.

However, unit cash cost of production is estimated to be around $3.50 to $4.00 per pound of nickel. This represents an increase on the previous $3.25 to $3.75 per pound guidance.

Western Areas advised that both revised categories were due to the lower grade ore in FY21, following some isolated seismicity. As these issues have impacted guidance earnings, the remaining life of Flying Fox will be rescheduled. It’s expected that deferral of some higher-grade material will be realised until later in FY21 and into FY22.

The company noted that as a result of the lower total tonnage of ore mined, overall mining cost per tonne will increase. In addition, fixed costs maintaining the mine such as power, dewatering and ventilation are incurred over a smaller production base.

All other metrics including mine development, capital growth, its Odysseus project and exploration activities remained unchanged.

What did management say?

Western Areas managing director Dan Lougher commented on its operations at Flying Fox. He said:

Flying Fox has been an exceptional mine over its 15-year life to date, but unfortunately, as it enters its final years there is limited flexibility in the mine plan when unexpected issues occur.

While it is disappointing to lower our guidance expectations for FY21, we are continuing to work with our mining contractor to reduce operating costs and maximise cashflow generation over Flying Fox’s remaining life.

About the Western Areas share price

Western Areas has a market capitalisation of $528 million and a price-to-earnings (P/E) ratio of 16.7, which can be seen as expensive to investors. The latter metric does not consider debt and cash in the bank. For the period ending September 30, Western Areas recorded a cash balance of $120.3 million. Effectively, this tells investors that the true P/E ratio is actually a lot higher.

Understandably, the mining industry is cyclical and the Western Areas share price will move in momentary swings. However, falling more than 35% since the start of the year, the latest news is likely to dampen shareholder enthusiam.

More reading

• ASX 200 flat: ResMed smashes expectations, AMP surges on takeover talks
• Why Bigtincan, Bubs, Carsales, & Western Areas are dropping lower

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The big crash in profits that sent the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price reeling yesterday may not be such bad news afterall.

Never mind that the ANZ share price tumbled 2.4% on Thursday when management unveiled a 42% chop in full year cash profit.

In fact, ANZ’s apparent gloomy earnings announcement may have cast a positive light on two other big banks that will be releasing their results next week.

When bad news is really good

That’s the view of some experts, including Morgans which reiterated its “add” recommendation on the stock.

“ANZ’s FY20 credit impairment charge of $2,738m is better than our expectation of $2,876m despite us appearing to have the most optimistic credit impairment charge forecast,” said the broker.

“We believe there is much to take heart from in this result about the outlook for expected credit loss (ECL) provisions.”

ANZ Bank results mark a turning point for sector

The question some experts will be asking is whether ANZ’s results actually mark a turning point for the underperforming banking sector.

If the impairment charge truly reflects all the probable bad news for delinquent loans, the sector could be closer to scoring a re-rating sooner than many investors expect.

Also, consider the fact that bank economists have recently been revising up their house price and employment projections.

The bad debt situation may be more benign than what the market is expecting. This is key to the outlook for bank stocks.

Bad debt risks may be abating

While investors have sold out for a range of reasons, bad debts due to the COVID‐19 crisis is the number one drag.

ANZ’s results may have been cast in a negative light yesterday, but it may signal good news for the Westpac Banking Corp (ASX: WBC) share price and National Australia Bank Ltd. (ASX: NAB) share price.

“We expect both WBC and NAB to report FY20 credit impairment charges that are better than consensus expectations,” said Morgans.

“We expect FY21F consensus credit impairment charges for ANZ, WBC and NAB to be revised positively over the course of this reporting season.”

Another positive for ASX bank stocks

What’s more, the net interest margin squeeze that’s depressing bank profits is also easing. This is because the big banks can gain access to the Reserve Bank of Australia’s (RBA) term facility and borrow at 0.25%.

Meanwhile, expectations that the RBA will cut official interest rates to a smidgen above zero means the banks have another excuse to cut rates on savings and term deposits.

This will lead to fatter margins for the big four going forward.

Time to buy ASX bank stocks

It’s a controversial call, but I think those long waiting for an excuse to buy the banks will now have it.

Remember, institutional investors (fund managers and professionals) are underweight on banks. If sentiment turns, bank stocks will surge higher.

I believe the tide is slowly turning. Those happy to stomach the near-term volatility should be gradually building their positions now.

More reading

• Are ASX retail investors ‘dumb money’?
• ASX 200 sinks 1.6%, ANZ (ASX:ANZ) reports FY20 result
• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week
• Why ANZ Bank, JB Hi-Fi, Northern Star, & SEEK shares are dropping lower
• ASX 200 down 1.1%: ANZ cash earnings down 42%, SEEK slammed, HUB24 jumps

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, National Australia Bank Limited, and Westpac Banking. Connect with me on Twitter @brenlau.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Big brokers continue to update their price targets throughout the S&P/ASX 200 Index (ASX: XJO) quarterly updates. Here are five ASX 200 shares that have received broker updates amidst October quarterly earnings. 

Afterpay Ltd (ASX: APT) 

Macquarie raised its Afterpay share price target from $90.00 to $97.50 but retains a neutral rating. The broker is impressed with the September quarter trading update. However, it notes that the US result was flat, but as expected given seasonal trends. Likewise, Morgan Stanley retained its overweight rating on Afterpay and its share price target of $115. It says that the trading update was slightly better than expected. While Afterpay’s Stripe partnership is a positive which should enable increased penetration in the US market. 

Conversely, UBS retains its gloomy sell rating with a price target of $28.25. While it expects continued improvement in transaction frequency in the next quarter as consumption increases into Christmas, it cannot find a reason to amend its target. 

Coles Group Ltd (ASX: COL) 

A series of price upgrades came in for the Coles share price including: 

• Citi raising its price target from $21.00 to $21.20 with a buy rating 
• Credit Suisse raising its price target from $20.16 to $21.04 with an outperform rating 
• Morgan Stanley raising its price target from $19.75 to $20.25 with an overweight rating 

All three brokers provided upbeat commentary anticipating strong demand for groceries in the December quarter. 

Galaxy Resources Limited (ASX: GXY) 

The lithium sector is getting some love from brokers following the fears that Tesla would solely source its lithium from Nevada. 

Citi raised its Galaxy Resources share price target from $1.25 to $1.40. It notes that the company is doing enough to manage lower prices and demand with its production. It sees the Altura Mining failure as a positive for lithium prices. 

Likewise, Credit Suisse raised its price target from $0.84 to $1.30. It anticipates that growth in lithium demand is on the horizon. 

Hub24 Ltd (ASX: HUB) 

The Hub24 has been a standout performer amongst ASX200 shares. However, the share price run has been backed by improving business performance and brokers have reacted positively to its recent acquisitions, earnings and growth opportunities. 

Credit Suisse upgraded its rating from underperform to neutral with a revised price target from $18.70 to $21.50. While Macquarie also raised its price target from $22.50 to $23.50. 

Super Retail Group Ltd (ASX: SUL) 

The Super Retail Group share price received a series of upgrades from multiple brokers. This includes: 

• Citi raising its price target from $11.90 to $13.10 
• Credit Suisse raising its price target from $11.83 to $12.21 
• Macquarie raising its price target from $10.80 to $11.30 
• Morgan Stanley retains its price target of $11.40 
• UBS raising its price target from $10.70 to $11.30 

All brokers were pleased with its sales performance and sees further growth ahead. 

More reading

• It’s not just Aussie Millennials driving the Afterpay (ASX:APT) share price to new records
• Sezzle (ASX:SZL) share price charges higher on Q3 update
• 5 things to watch on the ASX 200 on Friday
• Are ASX retail investors ‘dumb money’?
• Down 4% in 10 days: Is it time to buy ASX 200 shares?

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Hub24 Ltd and Super Retail Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Finding an ASX dividend share with a yield over 5% these days is a tough ask, let alone 9%. The (hopefully temporary) demise of ASX bank shares as hefty dividend payers, together with the coronavirus pandemic, has caused a dearth of dividends on the ASX.

2020 has seen a myriad of former dividend heavyweights slash their payouts, including Transurban Group (ASX: TCL), Sydney Airport Holdings Pty Ltd (ASX: SYD), and Ramsay Health Care Limited (ASX: RHC). The latter sadly broke a 20-year streak of annual dividend increases as well.

So, where to turn for hefty dividends in 2020?

Well, here are 2 ASX shares offering such a yield right now.

2 ASX dividend shares with yields over 9% today

Alumina Limited (ASX: AWC)

Alumina is Australia’s largest aluminium and alumina producer, and has amassed a reputation as a heavy-hitting dividend share in recent years. That’s despite its share price sliding more than 50% over the past 2 years or so.

Alumina’s last 2 dividends (paid in March and September this year) came in at 3.79 cents a share and 5.55 cents a share respectively. That would give Alumina a trailing dividend yield of 6.49% on current prices, or 9.29% grossed-up with Alumina’s full franking credits.

This is a volatile share to own, make no mistake. But I also think it could be extremely attractive for a long-term income play as well. If aluminium/alumina prices increase materially, you can expect a hefty share price appreciation in Alumina shares as a result, along with a potentially massive bump in dividend income (at least in my opinion). And with a starting yield today of more than 9%, it could be a great time to buy in.

WAM Research Limited (ASX: WAX)

WAM Research is another ASX divided share with a yield over 9% to consider today. This company is a Listed Investment Company (LIC), which means it acts more as a fund manager than a traditional company – buying and selling shares on behalf of its owners.

It does this very well, as the company’s performance over the past decade proves. Since 2010, WAM Research has returned an average of 15% per annum in growth and dividends (before fees and taxes).

Yes, dividends form the lion’s share of these returns. Over the past year, WMA Research has paid out 9.8 cents per share in dividends. That gives the LIC a trailing dividend of 6.9% on current prices. However, like Alumina, WAM Research’s dividends also come with full franking credits. That means it’s already-hefty dividend grosses-up to 9.86% with this franking included.

The company looks like it will be able to keep these payouts rolling out as well. As of 30 September, WAM Research has 34.9 cents per share in its profit reserve. That should be enough to cover its current dividend for at least 3 years.

More reading

• Virtual AGMs rob retail investors: fundie
• Attention: This ASX dividend share offers a fully franked 10% yield
• Why the Alumina (ASX:AWC) share price climbed higher today
• New WAM Alternative Assets LIC appoints portfolio manager
• Top brokers name 3 ASX dividend shares to buy today

Sebastian Bowen owns shares of Ramsay Health Care and WAM Research Limited. The Motley Fool Australia owns shares of Transurban. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Nutritional Growth Solutions Ltd (ASX: NGS) share price has hit the ASX boards in style on Friday.

The children’s milk formula company’s shares jumped as much as 90% higher than its listing price to 38 cents this morning.

The Nutritional Growth Solutions share price has since dropped back a touch but is still up 58% to 31.5 cents at the time of writing.

The Nutritional Growth Solutions IPO.

Nutritional Growth Solutions landed on the Australian share market today after successfully completing an IPO which raised $7 million at 20 cents per share.

Management advised that the IPO was heavily oversubscribed and received strong support from both retail and institutional investors.

It also advised that the funds raised through the IPO will predominantly be used to support sales and marketing initiatives, branding, new product launches, research and development, and for the general working capital requirements of the business.

What does the company do?

Nutritional Growth Solutions was founded by expert paediatricians and is commercialising a range of patented, clinically tested children’s milk formulas.

The formulas have been designed to ensure children receive all the necessary vitamins and minerals for their growth.

Its premier product is a protein powder designed to help kids optimise their height gain called Healthy Height. It is already generating revenues and is now sold in the United States, China, and Israel. It is also sold by Unilever in India under license as Horlicks Growth Plus.

In addition to this, the company has a range of new products undergoing clinical testing and development, as well as new product launches in the short to medium term. These new products will significantly expand the commercial opportunities for the company.

The company’s Managing Director and CEO, Ms Liron Fendell, commented: “We are very appreciative of the strong support shown by investors during the IPO process. I am thankful for the opportunity to bring our nutritional solutions to more children around the world. NGS operates in large and growing international markets and we look forward to executing on the broad range of commercial opportunities that we have identified “

More reading

• 2 ASX dividend shares with yields over 9%
• It’s not just Aussie Millennials driving the Afterpay (ASX:APT) share price to new records
• ASX stock of the day: iCar Asia (ASX:ICQ) share price explodes on takeover offer
• Why the Credit Clear (ASX:CCR) share price is up 125% in 3 days
• The Cirralto (ASX:CRO) share price slammed after quarterly report

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 Tyro Payments. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Afterpay Ltd (ASX: APT) share price hit a new all-time high on Wednesday, with shares trading for $102.97.

The stock has retreated to $99.19 per share at time of writing, alongside the wider selling in the S&P/ASX 200 Index (ASX: XJO). But year-to-date Afterpay’s share price remains up a stellar 222%. By comparison the ASX 200 is down 11% so far in 2020.

Afterpay’s record highs earlier in the week came after the company released its first quarter update for the 2021 financial year.

Afterpay reported strong results across all the regions it operates.

Underlying sales reached $4.1 billion, a 115% increase from the first quarter of the 2020 financial year. The company also noted that 45% of its like for like sales growth came from Millennials. In a sign that the BNPL space isn’t highly frequented by older generations, Gen X drove 25% of sales growth while Gen Z was responsible for 24%.

What does Afterpay do?

Afterpay is a leader in the buy now, pay later (BNPL) market. The company’s payment platform allows people to buy and receive goods and spread the cost of their purchase out over equal payments, without any interest fees.

The company was founded in 2015. Afterpay shares first began trading on the ASX in June 2017. The company now operates in Australia, the United States and the United Kingdom, with current expansion plans into the wider European market.

Why Afterpay’s soaring share price depends on US investors

Afterpay’s first quarterly report revealed its active global customers increased by 98% year-on-year. That’s seen its active customers reach 11.2 million. Notably, 6.5 million, or more than half, are in the United States.

Speaking to a virtual audience at the Australian Financial Review CFO Live event yesterday, Afterpay’s CFO Rebecca Lowde noted that the US isn’t just providing a huge lift in active users, it’s also providing a lot of investors:

A large part of our investor base is (in the) US and a large part of our expansion is into the US and UK, which are probably more the investors who do value growth rather than your EBTIDA multiple… The company has also been very open and transparent about what it is that it’s trying to achieve and has delivered to that well.

With its active user base in the US, and elsewhere, growing 98% over the past 12 months and underlying sales increasing 115%, the Afterpay share price may confound some analysts who believe it’s overpriced.

More reading

• ASX 200 flat: ResMed smashes expectations, AMP surges on takeover talks
• Sezzle (ASX:SZL) share price charges higher on Q3 update
• Why the AMP (ASX:AMP) share price could be set to rocket higher today
• 5 things to watch on the ASX 200 on Friday
• Are ASX retail investors ‘dumb money’?

Motley Fool contributor Bernd Struben owns shares in AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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iCar Asia Ltd (ASX: ICQ) shares are exploding today after the auto platform received an indicative takeover offer. The iCar share price is trading at 43 cents per share at the time of writing, a 34.38% increase from yesterday’s closing price of 32 cents. We are, however, still aways off making a new 52-week high with iCar shares, since the company was trading as high as 48 cents per share earlier in the year (in January to be precise).

The iCar share price has also had an extremely volatile few years, going as low as 12 cents per share in the midst of the March ASX share market crash. This means that, at today’s prices, shareholders are up nearly 260% since 23 March. Before that, iCar shares rose 258% between 1 February 2019 and 21 February 2020, before plummetting 60% between 21 February and 20 March 2020. On the current share price, the company has a market capitalisation of approximately $185 million.

So what is iCar, and why is its share price rocketing so dramatically today?

What is iCar?

iCar describes itself as “the leading cars portal network” in Malaysia, Indonesia, and Thailand. It offers very similar services to a company ASX investors might be more familiar with – Carsales.Com Ltd (ASX: CAR), which coincidentally once invested in iCar. iCar’s platform offers marketplaces for buying and selling vehicles, connecting buyers with sellers as a middleman. The company tells us that its success is due to “consistent consumer audiences, and listings leadership due to deep car dealership penetration and engagement via our market-leading Response Management System (RMS) which is integrated into dealers’ businesses.”

iCar’s brands include the Carlist.my website (Malaysia’s premier car website, according to the company), Mobil123.com, the Indonesian equivalent, and one2car.com (Thailand’s No. 1). The company’s Carmudi website is also popular in Indonesia. iCar tells investors that its websites enjoy more than 8 million visits per month.

Why is the iCar share price on the highway today?

The company released two ASX announcements this morning before market open, which seem to be responsible for the dramatic expansion of the iCar share price today.

Firstly, a quarterly update for the quarter ending 30 September 2020 hit the markets this morning. In this update, iCar Asia told investors that the company had recorded its “best ever net operating cash flow for the second straight quarter”, despite the effects of the coronavirus pandemic. Even so, this number is still negative at an outflow of $1.05 million, although it did improve by 32% over the previous corresponding 2019 quarter.

In terms of revenue, the company told investors that revenue for the quarter increased by 33% compared with the previous quarter (the quarter ending 30 June 2020). It also mentioned that despite the pandemic, earnings before interest, taxes, depreciation and amortisation (EBITDA) remained positive for both the Malaysian and Thai markets. Even so, iCar also told investors that it has drawn down $1 million of a $5 million debt facility during the quarter, which was provided by major shareholder Catcha Group.

A takeover proposal on the cars

Secondly, and most importantly, iCar told investors that it has received a takeover offer from the United States-listed company Autohome Inc (NYSE: ATHM). Autohome, even though it’s US-listed, is based in China. In its release, iCar describes Autohome as “a leading destination for automobile consumers in China”. It currently has a market cap of US$11.54 billion.

The offer is non-binding, but does propose to acquire 100% of iCar shares at a price of 50 cents per share (a 16.28% premium to the current share price and a 56.25% premium to yesterday’s closing price).

Even so, iCar notes that the proposal is subject to a number of conditions, including “negotiation and signing of transaction documentation, FIRB approval and iCar shareholder and Court approval”. “There is no certainty that the proposal will result in a transaction being agreed and put forward to iCar shareholders for consideration”, the company has told investors.

It’s these caveats that have probably halted the iCar share price from rising to the level of the takeover proposal today.

Despite this, these announcements are almost certainly behind the massive appreciation we’ve seen in the iCar share price today. It will be interesting to watch this potential takeover play out over the following months.

More reading

• It’s not just Aussie Millennials driving the Afterpay (ASX:APT) share price to new records
• Why the Credit Clear (ASX:CCR) share price is up 125% in 3 days
• The Cirralto (ASX:CRO) share price slammed after quarterly report
• Here’s why the Ansell (ASX:ANN) share price hit a record high today
• GWA Group (ASX:GWA) share price down after AGM

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Credit Clear Pty Ltd (ASX: CCR) had its ASX debut Tuesday 27 October. The company had an IPO offer price of 35 cents with an indicative market capitalisation at the offer price of $78 million. Despite a slow start to its ASX debut, closing at 46 cents, the Credit Clear share price proceeded to run more than 125% in the next 3 days. 

Who is Credit Clear 

Credit Clear is a fintech business that specialises in receivables management solutions. The ACCC definition of receivables management is when “creditors and collectors seek to secure payment from customers of businesses who are legally bound to pay or repay money they owe”.

Credit Clear sees this market in Australia as highly fragmented, with approximately 586 receivables management businesses operating nationally. It believes that the current operating model within the sector is open to disruption due to the increased demand for efficiency from the use of technology-based platforms. 

The company’s key clients include SMEs and large corporations, local councils and other government departments and domestic businesses and subsidiaries of global organisations. 

The company provides solutions to its clients through 3 lines of business: 

• Credit Clear: digital billing and communication technology platform 
• Credit Solutions: traditional receivables management 
• Oakbridge Lawyers: provider of legal services for debt recovery 

It generates revenues as a result of transactional platform income, platform licence income, traditional receivables management income and legal service income. 

In terms of the company’s financial performance, its pro-forma historical FY20 performance indicates revenues of $11.2 million with a gross profit of $5.6 million and a loss before income tax of $1.8 million. 

What Credit Clear aims to do with IPO funds 

The funds from the IPO will provide sufficient working capital to fund the business for 24 months based on existing levels of revenue, and provide additional financial flexibility with improved access to capital markets. Credit Clear has advised the funds will also be used to facilitate the company’s objectives including: 

• investing in technology and systems development to create a market-leading technology platform 
• accelerating sector penetration 
• achieving scale and reaching profitability. 

Foolish takeaway

The market is clearly excited about Credit Clear’s prospects. The company is in its early days and focused on ‘tech-enabling’ the receivables management sector. With the Credit Clear share price sitting at 1.01 per share at the time of writing (almost tripling the offer price), let’s see where the business goes from here. 

More reading

• The Credit Clear (ASX:CCR) share price has rocketed 133% since its IPO this week

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips

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The Cirralto Ltd (ASX: CRO) share price hit an all-time record high of $0.055 this morning. However, the price has since plummeted to 0.043% at the time of writing. Cirralto has had an eyewatering share price run from its lows of $0.002 back in May this year. 

What does Cirralto do? 

Cirralto offers a Software as a Service (SaaS) that modernises business IT systems. This involves migrating data from current systems to the cloud. Cirralto also implements a client’s data into systems that help with areas such as driving scale, improving sales, integrating with other systems and driving down costs. The company has three SaaS offerings including: 

• Spenda, a platform that integrates data in real-time across PoS, inventory, warehousing, sales teams and mobile techs while automatically updating financial needs 
• Flash Convert, which allows customers to migrate data from their current system to the cloud quickly, easily and for a fixed price 
• Synk’d, which enables businesses to connect applications together to remove repetitious data entry and automate information exchange

Cirralto share price slammed

Interestingly, the company announced its quarterly report at 10.50am. Following the brief rally on open, its shares were sharply sold off and are currently down 15% at the time of writing. Here is the run down of its quarterly report. 

Financial highlights 

Its quarterly highlighted a 118% increase in revenue from $82,313 to $179,745 and quarterly Average Revenue Per User (APRU) up 57.5% from $21.17 to $33.40. This quarter included the successful completion of a $2.7 million capital raising and proposed Appstablishment acquisition planned for completion this year. 

The company currently has a market capitalisation of approximately $65 million with total cash at the end of the quarter of $1.98 million. 

Product development 

Early in the quarter the company released a new product, SpendaCollect. This software enables any business to collect debt from any customer. In a retail setting this involves functionality, allowing customers to pay for goods or services either in-store, online or on-the-go through its virtual terminal. For suppliers and wholesalers, this means a custom portal enabling customers to see outstanding invoices which they can pay off using Cirralto’s integrated payment collection system. 

During the quarter, the company continued to release product updates focused on scaling the core systems transactional processes capabilities. Its strategy moving forward is to bolster its integration services that support more payment services adoption and exploitation of its competitive advantage in this area. 

More reading

• Here’s why the Ansell (ASX:ANN) share price hit a record high today
• GWA Group (ASX:GWA) share price down after AGM
• How ASX investors can capture these ‘billionaire trends’
• Why AMP, Fortescue, JB Hi-FI, & ResMed shares are charging higher
• Why the ResApp (ASX:RAP) share price is falling 18% lower today

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Ansell Limited (ASX: ANN) share price is pushing higher on Friday afternoon after releasing an update on its guidance for FY 2021.

At one stage today, the personal protection safety solutions company’s shares hit a record high of $42.36.

They have since dropped back a touch, but are up over 1% to $40.79 at the time of writing. This compares to a 0.4% decline by the S&P/ASX 200 Index (ASX: XJO).

What did Ansell announce?

Ansell revealed that it has started the new financial year in a very positive fashion despite the continued uncertainties arising from COVID-19.

According to the release, the company has experienced better than anticipated production volumes and sales across all of its five strategic business units.

In addition to this, the company revealed that the Exam/Single Use business has successfully managed supplier cost increases to date. And while it expects further cost increases to occur in the second half, it is working to protect its margins and limit any decline.

Management also advised that its capital expenditure investments, including capacity increases, are progressing to plan, and that exchange rates have been more favourable than originally budgeted.

Guidance upgrade.

As a result of the above, the company is now expecting organic growth to be in the double digits and earnings per share to be in the range of 135 cents to 145 cents.

In respect to the latter, this is an increase of 7.1% from the low end and 5% from the high end of its previous guidance range of 126 cents to 138 cents.

Though, management has warned that there remains considerable uncertainty over the remainder of FY 2021 due to the risks of the evolving impact of COVID-19. It notes that the pandemic could disrupt its supply chains and operations, and has the potential for broader macroeconomic weakness and FX volatility.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here’s why the Ansell (ASX:ANN) share price hit a record high today appeared first on Motley Fool Australia.

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