Tag: Motley Fool

The Resapp Health Ltd (ASX: RAP) share price has stormed higher today following a positive announcement regarding its software.

During mid-afternoon, shares in the digital health company reached an intra-day high of 14 cents. Since then, the ResApp share price has slightly retreated to 12.5 cents, up 19%, at the time of writing.

What does ResApp do

ResApp is a digital health company that specialises in developing smartphone application for the diagnostics and management of respiratory diseases. Machine learning algorithms use sound to detect and measure a variety of breathing conditions, such as breathing, snoring and coughing.

What did ResApp announce?

ResApp advised it has built a new smartphone application which has been non-exclusively licenced to biotech company, AstraZeneca Japan.

Developed over the last 12 months, the cough counting application is designed to identify coughs and background noises in everyday settings. The software records the number of coughs from the user and uploads the data in a form of time and date stamps. This is then accessible to medical and healthcare professionals to monitor in real-time.

The company noted that cough frequency is a key factor in respiratory disease progression and management. Traditional methods such as self-reporting or listening to audio recordings are said to be costly, inaccurate and labour-intensive.

The software will be used in a clinical study to monitor patients who suffer from lung cancer.

What’s the deal?

Under the agreement, AstraZeneca will pay a monthly licence fee for each patient enrolled in the initial study. In addition, a monthly support fee for the duration of the study will also be included. The program is set to start early next year and will run for two years.

ResApp noted that the number of patients and the length of their participation remains uncertain. It does not expect to generate material revenue from the program.

Looking ahead, the company is confident that the new partnership will lead to future product applications. ResApp is currently seeking new opportunities to integrate its software into a range of hardware devices. Discussions with large industry customers are ongoing and the company will update the market in due course.

What did management say?

Welcoming the development, ResApp CEO and managing director Dr Tony Keating said:

To have our technology licensed by a company of AstraZeneca’s reputation is a major achievement and provides significant validation of ResApp’s products and capability. They have some of the world’s leading scientists and researchers running clinical trials and treatment programs and we are confident that their input will enhance our technology for future commercial applications and deployments.

ResApp continues to build a strong foundation of commercial partners and this agreement is another example of the company’s ability to attract industry leaders that can assist in rapid scale well into the future.

More reading

• The ResApp (ASX:RAP) share price is soaring 10% today. Here’s why.

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.

The post Why the ResApp (ASX:RAP) share price is up almost 20% today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2HmCihc

The RPMGlobal Holdings Ltd (ASX: RUL) share price has dropped today despite the company announcing a new product. The mining software provider’s share price is currently trading 1.35% lower at a price of $1.09.

What’s new?

RPMGlobal introduced its newest integrated mine planning and scheduling product, Underground Potash Solution (UGPS). As the name suggests, it has been specifically tailored for the underground potash (potassium-bearing minerals or compounds) industry.

The product has been designed alongside a number of potash miners to address the unique challenges of their operations. It enables miners to utilise a single integrated mine planning and scheduling package. It can be used for design, reserving and scheduling (from strategic to short term).

RPMGlobal CEO Richard Mathews explained:

Unlike other 2D design tools on the market, UGPS undertakes detailed modelling of the potash deposit in 3D, creating a complete mathematical model of the mine. Moreover, users are able to import existing designs, create new designs or use a combination of both.”

Transition to SaaS

Midway through last week, RPMGlobal also announced the releasee of its first software-as-a-service (SaaS) offering. The product gives mining companies the capability to undertake haulage calculations in a cloud environment.

Importantly, the transition gives customers the flexibility to utilise multiple desktops. Under the new SaaS model, customers are able to write their own applications to interact with the program – Haulage as a Service (HaaS). 

Moreover, the calculation engine enables users or customer applications to undertake travel time calculations on demand.

About the RPMGlobal share price

The RPMGlobal share price has dropped today despite the product launch.

The mining consulting company was listed on the ASX in 2008 and is involved in the provision and development of mining software solutions, advisory services and professional development to the mining industry.

RPM boasts history stretching back to 1968. The company has been trusted by mining companies of all sizes and commodities to support their growth.

More reading

• ASX 200 recovered throughout today, but finished 0.3% lower
• Crown Resorts (ASX:CWN) share price edges upward after AGM results
• What to expect from the ANZ Bank (ASX:ANZ) full year result next week
• Why the Carbon Revolution (ASX:CBR) share price soared 14% higher today
• Why is the Immutep (ASX:IMM) share price falling lower today?

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of RPMGlobal Holdings. The Motley Fool Australia has recommended RPMGlobal Holdings. 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 RPMGlobal (ASX:RUL) share price falls despite product launch appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2HlfPAY

The S&P/ASX 200 Index (ASX: XJO) finished today lower by 0.3% to 6,174 points, however it was actually down around 1.2% earlier in the day.

Here are the highlights from the ASX today:

Westpac Banking Corp (ASX: WBC) and Zip Co Ltd (ASX: Z1P)

Westpac announced yesterday that it was going to sell its 10.7% stake in Zip through a fully underwritten bookbuild to institutional investors.

The offer price for the shares was $6.65, which equated to a discount of around 6% to the last closing price.

The major ASX bank said that this decision reflected Westpac’s approach to simplifying its business and ensuring the efficient use of capital. The sale will add around 8 basis points to Westpac’s CET1 capital ratio.

Westpac chief information officer Gary Thursby said: “Larry Diamond, Peter Gray and the management team of Zip have done a tremendous job growing the company, including expanding globally. We look forward to seeing them continue to grow a global customer franchise.

“We are continuing to explore opportunities with Zip, including working to integrate their buy now pay later functionality into our mobile banking apps across Westpac and our regional bank brands. This would expand our offering to customers and broaden the customers Zip can reach.

“We are also working with Zip on other opportunities for consumer, business and corporate customers that we believe could be mutually beneficial, while continuing to develop our banking relationship with Zip.”

Today, Westpac confirmed the sale went ahead, the Westpac share price dropped 1%. But the Zip share price fell 5% in reaction – it was one of the worst performers in the ASX 200.

Australian Pharmaceutical Industries Ltd (ASX: API)

API reported its FY20 result today to investors.

The pharmacy business reported that its total revenue rose by 0.2% to $4 billion. However, there was a shift away from higher margin products to value products which hurt profitability.

Underlying earnings before interest and tax (EBIT) fell 40.1% to $56.3 million and underlying net profit after tax (NPAT) dropped 42.6% to $32.5 million.

Reported EBIT was $4.4 million and it saw a net loss of $7.9 million after writing down the value of the Soul Pattinson Chemist brand name by $37.5 million (pre-tax) as well as including $12.3 million of post-tax tax relating to restructuring and reorganising.

API said that half of its revenue came from its retail businesses, so it was exposed to the impact of the mandatory lockdowns of non-pharmacy Priceline stores and Clear Skincare clinics. Pleasingly, Clear Skincare has performed very well in the states that have reopened and it continues to invest in new clinics.

As part of its cost reduction program, it closed two distribution centres which reduce its cost of doing business to 10.2%, a reduction of 70 basis points.

The API board decided to declare a dividend of 2 cents per share, representing a payout ratio of 33% of underlying net profit.

AMP Limited (ASX: AMP) suffers again

The AMP share price was one of the worst performers in the ASX 200 today after dropping around 5.5% in reaction to its third quarter update.

Australian wealth management (AWM) assets under management (AUM) increased by 0.3% to $121.4 billion, supported by improved investment markets.

However, AWM suffered net cash outflows of $1.95 billion (broadly flat compared to last year). The North platform achieved $818 million of net cash inflows.

AMP Capital AUM fell by 0.4% to $189.2 million after seeing net external cash outflows of $1.1 billion due to redemptions.

AMP Bank deposits rose by $52 million to $17 billion, though the total look book decreased by $303 million to $20.6 billion.

The AMP portfolio review continues alongside its transformation strategy to rejuvenate the business.

More reading

• Why Ardent Leisure’s (ASX:ALG) share price is up 46% from 28 September
• Why Domino’s, Oil Search, Resolute, & Zip shares are dropping lower
• ASX 200 down 0.75%: Big four banks drop, Healius hits record high, Zip slides lower
• Why the OZ Minerals (ASX:OZL) share price hit a 10-year high today
• Why the Australian Pharmaceuticals (ASX:API) share price is lower today

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 ZIPCOLTD FPO. 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.

The post ASX 200 recovered throughout today, but finished 0.3% lower appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3ong8fB

The Crown Resorts Ltd (ASX: CWN) AGM was always going to be a tense affair with pressures building over the past few weeks. Accordingly, the Crown share price has fallen by 9% over the past month to yesterday. After today’s AGM, however, the share price has been on the rise.

Crown Resorts chair Helen Coonan and CEO Ken Barton opened the meeting with apologies, acknowledgements of failure and the drive to improve. Nonetheless, it was still a blood on the walls affair with institutional investors seeking retribution for the current situation. Prior to the meeting, Ms Coonan acknowledged  a significant protest vote ahead of the company’s AGM.

Moreover, Mr Barton apologised in writing, stating there was no “intention to mislead” the current inquiry over relations with Consolidated Press Holdings Pty Ltd (CPH), majority shareholder James Packer’s private company. There was also a formal announcement yesterday of the termination of all agreements between Crown and CPH. 

What is moving the Crown share price?

During the motions to re-elect three directors, CPH abstained from the vote on directors and on the remuneration report, citing it as the right thing to do. This had the effect of ensuring the re-election of directors, but allowing a ‘first strike’ vote against the remuneration report.

As observed by the chair earlier, there was a large protest vote against Crown directors Jane Halton, Professor John Horvath, and in particular against Guy Jalland. Guy Jalland is connected to CPH, an issue which appears to have caused some consternation and impacts on the Crown share price. 

After winning re-election with 68.54%, Prof Horvath stated he would likely resign from the board. He commented at the time: “The proxy position displayed on the screen indicates that without the vote of CPH, shareholders are not supporting my re-election today as a director.”

This was later confirmed in a release from the company. Ms Halton said she also considered resigning due to the proxy vote, but believed that overall she had “sufficient support” from shareholders.

Meanwhile, the first strike vote Crown received against the company’s remuneration report is significant. The two strikes system helps shareholders control the remuneration of directors. A first strike occurs if more than 25% of shareholders oppose a remuneration report. The second strike occurs if 25% or more of the shareholders oppose a subsequent remuneration report. 

The board is then subject to a spill motion. This is where 50% or more of the votes will force all directors to stand for re-election within 90 days. 

The road ahead

Ms Coonan apologised unreservedly for any failings during the AGM. She said the company intended to strengthen its risk management procedure, as well as its anti-money-laundering and compliance departments. The chair also pledged changes to the Crown board, adding:

In the area of board renewal, the board accepts that there needs to be an injection of new perspectives and expertise on our board… These changes need to be undertaken in a considered and thoughtful manner to ensure an orderly transition.

After a faltering start to the day, the Crown share price momentum has reversed and it is now up by 2.27% at the time of writing. Investors have clearly displayed a level of discontent with the performance of the board. Its response, the actions taken, and the promise of further action, appear to have calmed the waters. 

More reading

• Broker updates are mixed on these 6 high profile ASX 200 shares
• How will the Crown Resorts (ASX:CWN) share price fare at today’s AGM?
• 5 things to watch on the ASX 200 on Thursday
• 5 ASX 200 events to watch for this week
• ASX 200 rises 1%, Cimic (ASX:CIM) up 8% on sale

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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.

The post Crown Resorts (ASX:CWN) share price edges upward after AGM results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Hn9HZ5

Next Thursday the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price will be on watch when the banking giant releases its full year results.

Ahead of the release, I thought I would take a look to see what the market is expecting from the bank following a turbulent year.

What is expected from ANZ?

According to a note out of Goldman Sachs, its analysts expect ANZ to report second half cash earnings (before one-offs) of $2,667 million. This will be an 8% decline on the prior corresponding period.

For the full year, this will mean cash earnings (before one-offs) of $4,080 million, down 37% on FY 2019’s result.

The broker is also expecting the bank to declare a final 40 cents per share partially franked dividend, bringing its full year dividend to 65 cents per share.

What else should you look out for?

Goldman has suggested that investors keep an eye on the bank’s asset quality.

It commented: “We forecast a moderation of 2H20E BDDs/TL to 40bp from 55bp in the previous half and will be keeping a close eye on asset quality commentary.”

“Whilst ANZ’s overall loan deferrals as a % of total loans (<10% as of Aug-20) sit at the lower end vs peers, unlike peers, ANZ’s cumulative net new mortgage deferrals in Jun/Jul/Aug-20 as a % of the May-20 balance has actually deteriorated,” the broker added.

Another metric to watch will be its loan growth, which has been improving in recent months.

Its analysts explained: “We currently forecast FY20E loan grown of 4% and particularly note the recent improvement in ANZ’s domestic housing momentum. Post the onset of “responsible lending” regulations, ANZ’s conservative response led to a notable drop in their lending growth and by extension market share.”

“However, in the three months to Aug-20, they achieved the highest total lending growth vs the peer group driven by outperformance in housing lending (ANZ’s average growth in the 3-month period came in at 10.5% vs peers CBA at 4.3%, NAB at -2.2%, WBC at -0.2%),” it added.

Finally, the broker will be looking for commentary on the bank’s costs.

Goldman expects its second half expenses to rise 1.9% on the prior corresponding period to bring its full year total to $9,187 million or $8,800 million excluding one-offs.

However, it believes the bank is well-placed to cut its costs materially in the future and offset the deteriorating revenue environment.

The broker notes: “ANZ’s performance on costs in recent years has been superior to peers and while management remains committed to its A$8 bn expense ambition, timing around when such a target can be reached will continue to evolve subject to how the current crisis plays out. We expect to receive more detail on this issue at the result.”

Goldman Sachs has a neutral rating and $20.99 price target on ANZ’s shares.

More reading

• ASX 200 flat: Big four banks push higher, Afterpay drops, Megaport sinks 10%
• Are ANZ (ASX:ANZ) shares a buy for dividend income today?
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• ASX 200 up 0.9%: Big four banks rise, Pro Medicus jumps, miners charging higher
• ASX 200 jumps more than 1%, big ASX banks rise

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. 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 What to expect from the ANZ Bank (ASX:ANZ) full year result next week appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3mgOeA1

The Carbon Revolution Ltd (ASX: CBR) share price was soaring 14% higher today on the release of its quarterly activities report this morning.

A relative newcomer to the ASX, the Carbon Revolution share price hit an all-time high of $4.47 per share on 24 January. Then the coronavirus pandemic struck and by 23 March the share price had plummeted by 82%.

The company has come back strongly since then, with today’s gains bringing the share price up 254% from the 23 March lows.

Year-to-date, the share price is down 17%. By comparison the All Ordinaries Index (ASX: XAO) is down 6% in 2020.

What does Carbon Revolution do?

Carbon Revolution is an Australian company that innovates and commercialises carbon fibre wheels for the global automotive industry. The company designs and manufactures high-performing wheels for some of the fastest street cars and top-quality brand names in the world.

Carbon Revolution’s shares first began trading on the ASX in November 2019.

Why is the Carbon Revolution share price soaring?

Despite noting that the pandemic continued to cause disruptions as the virus impacted customers, Carbon Revolution reported quarterly recognised revenue of $11.8 million. That’s up 45.9% on the previous quarter and up 26.3% on the previous corresponding period (pcp).

Commercialisation of the company’s new “fascia” technology has also begun with initial customer approval. According to the report, the technology “dramatically improves the conversion of moulded wheels to sold wheels and, in turn, drives a significant reduction in labour cost per wheel”. The company expects its first deliveries will start in the next quarter.

In addition, Carbon Revolution announced that upgrades to its high-pressure moulding equipment and installation of a new automated face layup line have been completed. This provides it with enough moulding capacity for its contracted programs (both announced and unannounced).

The company’s cash balance at the end of this quarter was $19.6 million. It said the business was funded for its FY21 operational goals.

Looking ahead, the company expects strong sales growth in the 2021 financial year. In addition, over the next 3 quarters, net cash flow from operating activities will be positive. The report also noted that the Federal Government JobKeeper package should support a proportion of wages while the company remained eligible under the JobKeeper scheme.

The Carbon Revolution share price has retreated slightly since its 14% morning high. It is now trading at $2.80, up 11.55% at the time of writing. On a day the All Ords is slipping, it appears that investors are happy with the company’s quarterly performance.

More reading

• The ResApp (ASX:RAP) share price is soaring 10% today. Here’s why.
• WISR (ASX:WZR) share price jumps higher on strong trading update
• Why did the Forbidden Foods (ASX:FFF) share price tumble 5% today?
• ASX 200 Weekly Wrap: Promises of easy money push ASX 200 to post-crash high
• Why the Nickel Mines (ASX:NIC) share price is up 16% today

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 Carbon Revolution Limited. The Motley Fool Australia has recommended Carbon Revolution 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.

The post Why the Carbon Revolution (ASX:CBR) share price soared 14% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Hvc0J6

The Immutep Ltd (ASX: IMM) share price is heading lower today after the company announced its quarterly report for Q1 FY21. At the time of writing, the Immutep share price has dropped 3.85% to 25 cents.

About Immutep

Immutep is a biotechnology company that develops new immunotherapy treatments for cancer and autoimmune diseases. The company boasts partnerships with some of the world’s largest pharmaceutical companies including Merck & Co. Inc. (NYSE: MRK), Pfizer Inc. (NYSE: PFE) and GlaxoSmithKline plc (NYSE: GSK).

Immutep’s main product is eftilagimod alpha (IMP321), a soluble fusion protein, which is in clinical development for the treatment of cancer. The company has two other clinical candidates (IMP701 and IMP731) that are fully licensed to major pharmaceutical partners, and a fourth candidate (IMP761) which is in pre-clinical development.

The Immutep share price has traded relatively flat during 2020, losing a little under 4% despite the effects of the global pandemic.

Quarterly update

The Immutep share price is today edging lower as the company announced its quarterly activities report. During the September quarter, a number of the company’s important clinical trials were underway.

In regards to Immutep’s Tacti-002 phase II clinical trial, the company reported encouraging results. These results showed three patients had complete responses with a further five seeing partial responses.

The Tacti-002 trial is evaluating the efficacy of the combination of IMP321 with Merck & Co’s Keytruda drug in up to 109 patients with cancer.

The company’s other main clinical trial, Inisight-004, is also progressing well. This has shown 41.7% of patients demonstrating a response to the combination therapy of IMP321 and Avelumab (a human antibody). This represents a 33% improvement on the previous interim data.

Finally, the biotech’s preclinical drug, IMP761, is also showing good signs of progress according to the report.

Financials

The company reported very weak cash receipts from customers which could explain today’s falling Immutep share price. Cash receipts from customers for the quarter were $23,000, compared to $128,000 last term.

Moreover, total net cash outflows were $3.34 million for the quarter. Whereby total net cash inflows from operating activities during Q4 FY2020 were much higher, coming in at $0.12 million.

Immutep’s cash balance was $22.7 million as of 30 September, with the company stating that its cash runway extends to the end of calendar year 2021, beyond several significant data read-outs.

Immutep share price summary

The Immutep share price reached a pre-COVID high of 50 cents in February this year before plummeting as low as 10 cents in March. Despite making a partial recovery since its March lows, the Immutep share price is still trading 50% below its 52-week high. 

More reading

• Why the Genetic Signatures (ASX:GSS) share price is surging 5% higher today
• The Suncorp (ASX:SUN) share price is slightly lower on day of AGM
• PayGroup (ASX:PYG) share price falls despite positive update
• Top brokers name 3 ASX shares to sell today
• Why you should pay attention when management buy (or sell) ASX shares

Motley Fool contributor Daniel Ewing 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.

The post Why is the Immutep (ASX:IMM) share price falling lower today? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3jjdpzO

The market may be struggling on Thursday, but that hasn’t stopped the Genetic Signatures Ltd (ASX: GSS) share price from charging higher.

In afternoon trade the specialist molecular diagnostics company’s shares are up over 5% to $1.99

Why is the Genetic Signatures share price charging higher?

Investors have been buying the company’s shares following the release of its first quarter update this morning.

According to the release, Genetic Signatures delivered record quarterly revenue of $10.5 million for the three months ended 30 September. This was a 50% increase on the previous quarter and a massive 585% higher than the prior corresponding period.

Pleasingly, management notes that it was cashflow positive during the quarter, adding $3.4 million in net cash from operating activities.

What were the drivers of its growth?

Management advised that it experienced strong demand for COVID-19 testing kits from customers in Australia.

It notes that COVID-19 testing in Victoria remained high as the state faced a second wave of infections. In addition, although the number of active cases in New South Wales was controlled, customer demand for testing kits continued throughout the period.

Genetic Signatures’ CEO, Dr John Melki, commented: “We are very pleased to report an exceptional quarter of revenue growth and positive cashflow. Strong demand from our customers following the second wave of COVID-19 infections, particularly in Victoria, contributed to the result.”

But it wasn’t just the domestic market contributing to its sales growth, Genetic Signatures also reported strong demand internationally.

“We are achieving good traction in EMEA, while our US sales team is actively pursuing COVID-19 opportunities under the recent FDA Emergency Use Authorisation (EUA) guidance. As countries around the world battle to keep infection rates under control, extensive testing remains an essential tool for safely re-opening economies,” added Dr John Melki.

Outlook.

Management believes the company is well placed to assist the pandemic globally due to its 3base technology.

North America represents the largest diagnostics market globally and the company is continuing to build inventory of its kits to ensure it can supply new customer contracts in the region. If successful, it believes this could represent a step change in revenue.

However, it warned that COVID-19 testing volumes globally remains fluid. As a result, it advised that the predictability of future revenue is difficult and dependent on measures imposed by various governments. This includes quarantining, travel restrictions, testing strategies, and reimbursement rates. As such, no guidance was given for the coming quarter or full year.

More reading

• Why Afterpay, Genetic Signatures, Qube, & Serko shares are charging higher

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. 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 Why the Genetic Signatures (ASX:GSS) share price is surging 5% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2HgJX0C

The Suncorp Group Ltd (ASX: SUN) share price has fallen slightly tp $8.82 after the company’s AGM today.

The AGM confirmed Suncorp’s performance during FY20 and reported on the progress of changes for the post-COVID world. Due to divestments of Australian Life, Capital S.M.A.R.T, and ACM Parts businesses, Suncorp was able to generate windfall earnings. This was despite the impacts on the insurance industry of bushfires, drought and the COVID-19 pandemic. However, more interesting are the indications of future performance.

Suncorp in the post-COVID-19 world

The company pointed to the positive impacts of the work from home phenomenon during the lockdown. Suncorp has been developing flexible work capabilities since the Brisbane floods of 2011, and is working on more hybrid models in the future. It also noted that the ability to attract a wider range of talent was significant, while there were also efficiencies to be gained. 

Moreover, the lockdown has accelerated transformation to digitisation and automation. Thus removing pinch points in the process, and providing some hope for productivity improvement. 

Suncorp chair Christine McLoughlin said artificial intelligence and its underlying technologies were “reshaping the insurance industry”, from distribution, to underwriting and claims. “For example, connected devices and sensors including drones can work together to speed up traditional claims assessment methods, or even detect issues before they occur,” she said.

Commenting on the issue of transformation, Suncorp CEO Steve Johnson told shareholders:

Our program of work to reset our business post-COVID-19 is well underway. We have made changes to our business model, the structure of our group and to our team.

We are removing duplication, streamlining decision making and ensuring everyone at Suncorp understands their role in driving improved customer and shareholder outcomes in our core insurance and banking businesses.

Future risks

On future risks, Suncorp said the impact of climate change was one of its most material issues. The company’s climate related plans and policies support advocacy and collaboration to drive better decisions. Mr Johnson said that increased climate change and risk increased costs. He added that out of every dollar in disaster funding, only 3 cents was spent on preparation, with 97 cents spent on recovery. 

Suncorp share price performance

Although the share price is 1.62% lower in today’s trading, it has risen by 4.9% over the past month. At the time of writing, it is trading at a price to earnings (P/E) ratio of 18.5, and has a trailing 12-month dividend yield of 4.08%.

More reading

• Invest your Suncorp dividends in these ASX shares today
• Top brokers name 3 ASX dividend shares to buy today
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Daryl Mather 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.

The post The Suncorp (ASX:SUN) share price is slightly lower on day of AGM appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3m2Gbqi

PayGroup Ltd (ASX: PYG) shares are falling today following the company’s release of its quarterly update to the market. At the time of writing, the PayGroup share price is down 3.45% to 56 cents.

Let’s take a deeper look and see how the human capital management (HCM) solution company performed for Q2 FY21.

Q2 result

For the period ending 30 September, PayGroup reported substantial growth, most notably from its software-as-a-service (SaaS) offering.

Operating cash flow for the three months achieved a surplus of $1.1 million, up 10% on the prior quarter. This was represented by volume increases of its Astute SaaS timesheets due to improved business confidence. Further support of growth in this segment is forecasted as a result of government budget initiatives.

TalentOz, which was acquired by PayGroup in July this year, has made progress offering 11 new complementary HCM modules, taking the total number offered by PayGroup to 27 modules.

The company won $5.4 million in contracts for the first half of the year, equivalent to 98% of total contract value in FY20. Last week, PayGroup secured a contract win with Volvo Group Singapore, valued at $120,000. This also has the possibility of further opening up a new addressable market within the automotive industry. 

Costs associated with running the business were broadly in line with Q1 FY21. PayGroup said it will continue to execute its cost efficiency plan, with expected savings of $1.5 million for FY21. This will be realised in areas such as hosting technology and corporate costs.

PayGroup closed the quarter with a cash balance of $5.3 million, supported by a successful capital raise that was undertaken in September.

Outlook

PayGroup advised it is on track to continue its momentum in H2 FY21. The creation of its ‘hire-to-retire’ HCM module is seeing a significant number of new customer signings across the Asia Pacific region.

PayGroup Managing Director, Mr Mark Samal, commented on the company’s performance and ongoing opportunities, stating: 

Our recent contract wins, with high quality customers such as Volvo Group Singapore, are testament to our expansion strategy and goal of offering our customers a full-service solution. Not only does this increase our addressable market but gives us significant scope to increase revenue opportunities from existing clients. We are also seeing Asian and Middle Eastern economies rebound strongly and expect continued growth momentum in H2 FY21.

PayGroup share price summary

The PayGroup share price has been on a rollercoaster ride for shareholders this year. The company’s shares were averaging around the 70 cent price mark from late last year until COVID-19 took effect.

Reaching an all-time low of 43.5 cents in March, its shares quickly recovered. In the months following, the PayGroup share price hit a 52-week high of 90.5 cents, before gradually falling again to 56 cents at the time of writing.

More reading

• PayGroup (ASX:PYG) share price moves higher on contract win
• What’s driving the PayGroup (ASX:PYG) share price higher today

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.

The post PayGroup (ASX:PYG) share price falls despite positive update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34gUK3u