Tag: Motley Fool

The Whitehaven Coal Ltd (ASX: WHC) share price has plummeted to a new 52-week low of $1.08 in morning trade today. This steep slide came after the company released its annual result for the 2020 financial year (FY20).

At the time of writing, the Whitehaven Coal share price is down 12.05% to $1.10. 

What was in the FY20 announcement?

In today’s announcement, Whitehaven reported FY20 coal production of 20.6 million tonnes.

Revenue came in at $1.72 billion, down from $2.49 billion in the prior corresponding period (pcp).

Whitehaven Coal had net profit after tax of $30.07 million in the 2020 financial year, down 94.7% on pcp. According to the company, its earnings were impacted by lower coal prices. Net profit was also affected by the amortisation of the value of its mines. Depreciation and amortisation totalled $224.6 million in the 2020 financial year.

Diluted earnings per share were 3 cents in FY20 compared to 52.4 cents per share in FY19.

The company reported underlying earnings before interest, tax, depreciation and amortisation of $306 million in the 2020 financial year, down from $1.04 billion in 2019.

Whitehaven Coal had net debt of $788 million at 30 June 2020 and liquidity of $468.8 million.

Managing director and CEO Paul Flynn commented on the company’s FY21 outlook: “Our immediate focus is on achieving greater efficiency and more consistent operational performance in anticipation of markets rebalancing and price improvements beginning to flow through.”

About Whitehaven Coal 

Whitehaven Coal is a producer and exporter of thermal coal with assets in Australia. It has been listed on the ASX since 2007.

Earlier in August, Whitehaven Coal announced that it had received approval for its Vickery extension project near Gunnedah in NSW. The project will involve capital spending of $700 million.

The Whitehaven Coal share price today hit a new 52-week low of $1.08. It is down more than 57% since the beginning of the year and more than 66% since this time last year.

More reading

• Why APA, Bravura, Jumbo, & Whitehaven shares are sinking lower
• ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints
• What are dividend shares and how do you find them?
• ASX 200 up 0.3%: NAB Q3 update, Mesoblast rockets, Newcrest guidance disappoints
• Why Flight Centre, Navigator Global, Newcrest, & Whitehaven Coal are dropping lower

Motley Fool contributor Chris Chitty 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 Whitehaven Coal share price crashes to 52 week low following annual result appeared first on Motley Fool Australia.

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

A senator has used parliamentary privilege to publicly expose more alleged systemic sexual harassment and bullying at AMP Limited (ASX: AMP).

A former employee had contacted Labor Senator Deborah O’Neill after seeing the recent controversy over the promotion of Boe Pahari to AMP Capital chief executive.

Pahari was promoted despite serious harassment accusations against him. That decision was steadfastly defended by AMP until this week when the chair, a director and Pahari stepped down after investor pressure.

Pahari remains employed at the finance firm.

Senator O’Neill said in parliament on Tuesday night that she was approached about another disturbing case, who AMP “tried to silence”.

“I want to put on the record the experience of a heroic young Australian, a young woman who deserves a medal for bravery and resilience.”

The woman, whose identity O’Neill did not disclose, was a junior staffer who alleges harassment from both peers and managers.

“The harassment I suffered ranged from receiving sexually explicit photos and emails expressing a desire to have sex with me, constant and public propositioning, including in front of some of the company’s largest clients, physical harassment, including being touched repeatedly by a leadership team member at the office, a senior colleague groping me off site and another forcing himself on me by rubbing his genitals against me at a work function,” O’Neill directly quoted the victim.

‘I was at his physical mercy’

The former AMP staffer accused her direct manager of threatening to end her finance career if she did not submit to his sexual wishes during a work trip.

“I felt in fear of my physical safety. I knew, as a woman does by a certain age, that I was at his physical mercy,” she said.

“My saving grace was that he was blind drunk and, as he went to pour himself another drink, I ran. I immediately called a friend. Distraught and terrified, I could not stop shaking.”

After complaints, the victim was then allegedly subjected to a system of silencing and a demotion of duties. She accuses the company of continuing to force her to work alongside her harassers and signing a non-disclosure agreement under duress.

An AMP spokesperson told The Motley Fool that the company was in contact with O’Neill’s office to get in touch with the ex-employee.

“The behaviour and conduct described in Senator O’Neill’s speech is distressing and unacceptable to AMP,” said the spokesperson.

“AMP takes any complaint or issue raised seriously, including from employees who have now left the organisation. This can be done anonymously through our whistleblowing service or through our People & Culture process.”

Life destroyed, even after exiting AMP

Senator O’Neill read the victim’s testimony that even on her last day at AMP humiliation and bullying allegedly followed.

“My former manager entered the elevator in which I was standing alone. He came up to me, stood inches away and then growled at me, bursting into laughter as he did,” the former staffer said.

“By the time the lift doors opened on the ground floor I was on the floor, sobbing.”

She had since spent tens of thousands dollars on psychological therapy and reskilling for a different career.

“My time at AMP changed me from an optimistic, ambitious professional to a shadow. It ended my career in finance and resulted in irrevocable long-term damage to me that I carry every day,” she said.

“I was thrown out of the industry and hung out to dry while the perpetrators not only remained but thrived. The cost was immeasurable to me and yet they were rewarded. The message was clear to victims: you will lose everything if you speak up.”

Australian Shareholders’ Association company monitor Ian Graves told The Motley Fool that AMP’s internal culture had much to repair.

“This revelation further emphasises our contention that changes to the culture and governance should be of the highest priority.”

AMP’s share price was down 0.34% at 11.39 am AEST Wednesday, to trade at $1.47. It was $5.43 in March 2018.

More reading

• 3 ASX dividend shares to buy before it’s too late
• AMP still looking pretty sick even after sackings
• 6 ASX giants pay $1 billion for ripping off customers
• AMP executives resign over sexual harassment scandal
• AMP to release sexual harassment details, won’t sack anyone

Motley Fool contributor Tony Yoo 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 ‘Destroyed’: AMP faces more sexual harassment allegations appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32lzV4G

How much would a $10,000 investment in Zip Co Ltd (ASX: Z1P) shares in March be worth today?

Zip Co has been one of the best performers on the ASX boards over the past few months. Zip is known as the ‘younger sibling’ of buy now, pay later (BNPL) pioneer Afterpay Ltd (ASX: APT). It’s also one of the hottest stocks on the market right now.

In fact, just today the Zip share price is surging again after the company announced a new partnership with American e-commerce giant eBay. Zip shares are up 19.42% at the time of writing to $9.04 a share.

It’s certainly been a wild ride for Zip shares in 2020 so far. Throughout the course of this year, Zip has been priced at $3, then $4, then just $1.05 in March, then back to $3, then $4, followed by $6 and $7.

Today’s move has taken Zip above $8 and then $9, both for the first time ever. The new all-time high stands at $9.25, which may be exceeded before the day’s trading is done.

So, how much would a $10,000 investment in Zip shares back in March be worth today? Well (as we flagged earlier), Zip shares got to a low of $1.05 in the throes of the March share market crash. It wasn’t there for long, but it still got to that level. So if you were fortunate enough to sink $10,000 into Zip shares on that day, you would have picked up 9,523 shares with some change left over.

At today’s record high, those 9,523 shares would have a market value of $88,087.75 after experiencing a return of 781%. Yikes!

Are Zip shares still a buy today?

Evidently, Zip shares were worth buying pretty much on any day between March and yesterday. But what of today?

Well, on one level, it is conceivable that Zip could have a lot further to climb. Arch-rival Afterpay has a market capitalisation of around $25.2 billion on current prices, whereas Zip is now worth just under $3.5 billion. If Zip can follow Afterpay’s lead and execute on its growth strategy, it’s possible it can one day rival Afterpay in terms of size and scale.

But that would rely on everything going Zip’s way with no room for error if we consider the share price Zip is commanding right now. In my view, the market is assuming BNPL is going to continue to explode as a viable payment option across most areas of consumption in the economy, with Zip as a holder of a major chunk of market share.

This may well happen, but I’m not so bullish. I believe BNPL is here to stay, but I do think it’s possible it will have a ceiling of adoption. Long story short, Zip shares are too high right now for me to comfortably make that bet.

But if you’re truly sold on Zip’s future potential, there may well be still time to jump on this train.

More reading

• How to boost your share market gains
• Flexigroup share price in trade halt ahead of capital raise
• Why Bigtincan, Cleanaway, Worley, & Zip Co shares are storming higher
• Zip share price surges 20% on eBay partnership
• The Afterpay share price is up 1,000% in 6 months

Sebastian Bowen 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 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.

The post If you invested $10,000 into Zip shares in March, here’s how much you’d have today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2QrT53c

Australian investors, as a whole, tend to put most or even all of their share market investing funds into ASX shares. While, as I’ll outline below, this is generally a mistake, there are good reasons for that.

After all, most Aussies are more familiar with Qantas Airways Limited (ASX: QAN) than with United Airlines Holdings Inc (NASDAQ: UAL). And we’re certainly better acquainted with Woolworths Group Ltd (ASX: WOW) than US supermarket giant Kroger Co (NYSE: KR).

Superficially it makes sense to invest in a company you know, and one you may well do business with yourself. Which is another reason Australian investors’ portfolios tend to be overweight on ASX shares. With a small, geographically isolated population, we like to support the home team.

Additionally, investing in international shares was historically more difficult and expensive than buying shares on the ASX. And many investors don’t realise that the last few years have ushered in a sea change here.

Almost every Australian broker and numerous online trading platforms now enable you to buy US and other internationally listed shares. And the fees are not much higher than they charge for investing in ASX shares.

Some annual share market returns

Let’s look at some share market returns to give you an idea of why sticking solely to ASX shares likely isn’t in your best interests.

We’ll start here at home with the S&P/ASX 200 Index (ASX: XJO), which contains the 200 largest Australian listed companies by market cap. The 1-year returns for the ASX 200 stand at -5.1%. That’s after the index was up 11.2% from 26 August 2019 through to 20 February this year.

We have COVID-19 to thank for that. But then the coronavirus is a global pandemic and has plagued share markets without heed for international borders. And the United States, certainly, hasn’t been spared.

So how have the 2 major US indexes done?

The S&P 500 Index (INDEXSP: .INX) is up 19.6% over the past 12 months. And the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) has gained 46% in the past year. I’m sure you’d rather have a piece of those gains than the 5.1% loss from the ASX 200.

Some great Aussie shares

Now before the hate mail pours in, there are some fantastic shares on the ASX. Some have delivered eye-popping gains despite being dragged lower during the viral selloff in February and March.

The Afterpay Ltd (ASX: APT) share price leads the ASX 200 pack, with shares in the buy now, pay later company up 277% over the past 12 months,

Mesoblast limited (ASX: MSB) comes in a close second. Mesoblast’s share price has gained 261% over the past full year.

In fact, 6 ASX 200 shares have delivered share price gains of 100% or more over the past 12 months. That’s 6 companies that have doubled, or more, their investors’ money in just one year.

So by all means, do invest in ASX shares. But in my opinion, it’s worth also looking to invest some of your money beyond our fair shores.

Own a piece of the businesses the world uses every day

We’ll get back to the potential to boost your gains by investing internationally in a tick. But first you should be aware of the additional potential risks. And, of course, that there’s no guarantee you’ll achieve bigger gains by investing some of your money outside the ASX.

One thing to be aware of is fluctuations in the exchange rates. If the Aussie dollar gains against the US dollar, your returns will be less if you sell your US shares. On the other hand, if the Aussie dollar falls against the greenback, it would see your gains increase.

There are also some tax issues to keep in mind, including the fact the dividends on US shares won’t come with franking credits.

With that said, there are a number of good reasons not to park your entire share portfolio in ASX shares, beyond the potential to boost your share market gains.

Like diversification.

The Motley Fool’s own Scott Phillips sums it up perfectly:

By investing part of your funds internationally you not only increase the opportunity to find the big winners of tomorrow, but you also reduce the risks that are specific to Australia. Risks that could seriously damage your portfolio.

Scott is talking about risks such China closing its doors to our mineral or wine exports.

Here’s more from Scott:

Some of the very best companies on planet Earth aren’t listed on the ASX. The Australian share market is a minnow on the global stage. Our share market represents a tiny 2% of global stock markets. … If you’re anything like the average Australian, it’s a very fair bet that more than 75% of the products and services you come across each week are owned by US-listed firms.

That’s a startling statistic, but if you’re like me it certainly holds true. Which is why Scott says, “[p]erhaps the single biggest reason to invest internationally is to own a piece of businesses whose products and services we and many others around the world use on a daily basis.”

So how does this advice pan out in real life?

Over at his investment advisory, Share Advisor, Scott Phillips recommends both ASX and US-listed shares. And he’s racked up an admirable track record in both.

Going back all the way to 2011, Scott’s ASX recommendations in Share Advisor have returned an average of 47.9%. That beats the benchmark by a handy 18.0%.

Scott’s also been recommending US stocks in Share Advisor since 2011. The average return there is 203.6%, beating the benchmark by 165.2%.

Have another look at the numbers above. I believe they speak for themselves.

More reading

• If you invested $10,000 into Zip shares in March, here’s how much you’d have today
• Flexigroup share price in trade halt ahead of capital raise
• The Afterpay share price is up 1,000% in 6 months
• 5 things to watch on the ASX 200 on Wednesday
• Qantas to cut 2,420 more jobs

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO and Woolworths 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 How to boost your share market gains appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32q8qH5

Dollar-cost averaging (DCA) is a popular method of investing in ASX shares. It involves investing a set amount of capital at a determined time period, say $100 every week or $1,000 a month, and sticking to it, regardless of what is happening in the markets.

By capturing the various fluctuations of the market over a given time, dollar-cost averaging can give you an ‘average’ of the overall market’s performance, thus eliminating the risk of making a large purchase at a suboptimal price.

But using a DCA strategy does have its fair share of critics. By definition, this strategy discourages trying to time a buy. Thus, if you follow a DCA, you might be unable to capitalise on a market crash by buying large amounts of shares at historically low prices: that is, ‘buy low, sell high’.

So is a DCA strategy a good idea, or something that you should avoid?

Dollar-cost averaging: pros and cons

In my view, DCAs are best suited to investors who struggle with the emotional burdens that investing can bring. Everyone knows the best time to buy anything is when it is ‘on sale’. And that’s exactly what usually happens in a market crash.

For example, the market viewed mining giant BHP Group Ltd (ASX: BHP) as worth more than $41 a share back in February. In the midst of the March share market crash, the market at one point decided BHP was worth only $25.20. Today (at the time of writing), it has revised that valuation back up at $38.28. Clearly, there was some irrational selling going on, as one company (especially one as large as BHP) cannot possibly be truly worth 50% more today than it was just 5 months ago.

Now, we all know the best time to buy BHP shares in 2020 was on the day they were trading at $25.20. But in the heat of the moment, it is extremely difficult for many investors to pull the trigger when there is fear and panic all around (as there was back in March). “What if it drops lower from here and I lose even more money?” they might ask. Or, “What if I can get another 10% off tomorrow?” Remember, a market’s lowest point is only painfully obvious in hindsight.

It’s precisely because of these emotional roadblocks that many investors will be better off with a DCA. It simply takes this emotional pressure out of the game.

Foolish takeaway

So which is the best strategy? Dollar-cost averaging, or stockpiling your funds until the market tanks?

Well, it really depends on your temperament as an investor. You can always try a ‘hybrid approach’ of setting aside 10%, 20% or 30% of your portfolio in cash to be put to work during a market crash, and employing a DCA strategy when you hit that threshold for the rest of the time.

There is no right answer here, just what works best for you.

More reading

• Forget term deposits and buy these quality ASX income shares
• What are dividend shares and how do you find them?
• Here are the highlights of this ASX reporting season
• ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower
• 5 blue chip ASX 200 shares a beginner can use to start a share portfolio

Motley Fool contributor Sebastian Bowen 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 Should you wait for a market crash to invest, or just use dollar-cost averaging? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2ExK06k

At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) looks set to end its winning streak with a disappointing decline. The benchmark index is currently down 1.25% to 6,084.6 points.

Here’s what is happening on the market today:

Bank shares under pressure.

After a strong day on Tuesday, the banking sector is giving back its gain today. All the big four banks are trading notably lower at lunch, with the National Australia Bank Ltd (ASX: NAB) share price the worst performer in the group. Its shares are down over 2.5% at the time of writing.

Cleanaway impresses.

The Cleanaway Waste Management Ltd (ASX: CWY) share price is racing higher today following the release of the waste management company’s full year results. Despite the negative impact of the pandemic and the landfill levy in Queensland, Cleanaway still delivered a strong result in FY 2020. It reported an 8% increase in underlying net profit after tax to $152.9 million. This positive form allowed the company to increase its full year dividend by 15.5% to 4.1 cents per share.

Whitehaven crashes.

The Whitehaven Coal Ltd (ASX: WHC) share price is crashing lower on Wednesday following the release of its full year results. The coal miner reported a 95% decline in underlying net profit after tax to $30 million. Its performance was impacted by weak coal prices and labour shortage issues. In light of this, Whitehaven paid just a 1.5 cents per share dividend in FY 2020. Down from 50 cents per share a year earlier.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Wednesday has been the Cleanaway share price with a gain of over 8%. This follows the release of its full year results. The worst performer has been the Bravura Solutions Ltd (ASX: BVS) share price with a disappointing 16% decline. A strong FY 2020 result was overshadowed by weak guidance for FY 2021. Management warned that profits could be flat this year.

More reading

• Why Bigtincan, Cleanaway, Worley, & Zip Co shares are storming higher
• Cleanaway Waste share price climbs after earnings, dividend up
• Investors to look beyond Worley’s big jump in earnings and dividend
• Bravura Solutions share price on watch after strong FY 2020 growth but cautious guidance
• 5 things to watch on the ASX 200 on Wednesday

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 Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions 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 ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Yx9V5q

Shares in Cardno Limited (ASX: CDD) have tanked more than 11% in early trade, despite the company beating guidance in its financial results for the year ended 30 June 2020 (FY20).

How has Cardno performed for FY20?

Earlier today, Cardno released its results for FY20.

The company’s report was headlined by an 11.1% surge in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the full year of $43 million. The result marked the 4th consecutive year in which Cardno has hit or exceeded market guidance. Cardno’s result was fuelled by cash flow from operations of $43.5 million for the full year. In addition, the company reported a 4.4% increase in gross revenue of $978.3 million.

Cardno’s management noted that the company has been able to continue to deliver it services despite the COVID-19 pandemic. Fee revenue for the full year increased 11% to $677 million, with the Americas being Cardno’s strongest region. However, Cardno saw fee revenue down 4% in the Asia Pacific region with the company citing a longer than normal reset.

The company attributed its performance to its speciality offerings in health sciences, natural resources and asset management. Cardno highlighted that the company has zero net debt, however did not declare a final dividend for FY20.

What is the outlook for Cardno?

Cardno is a professional infrastructure and environmental services consultancy company. Despite reporting results that are both up on last year and ahead of market guidance, the Cardno share price has tanked more than 11% in early trade. The sell-off follows the company’s softer outlook for FY21.

According to Cardno’s management, the company’s operations will undoubtedly be impacted by the COVID-19 pandemic. As a result, the company provided conservative guidance for its outlook. For FY21, Cardno anticipates EBITDA to be in the range of $40 million to $45 million.

Operations in the Americas will continue to remain in focus, as the company looks to maintain momentum during the pandemic. Cardno noted that its Asia Pacific business is in the first year of a 2-year rebuilding plan, with the company focusing on lifting margins in FY21.

Foolish takeaway

At the time of writing the Cardno share price is down more than 11.5% and is currently trading near its intra-day low of 29 cents. The Cardno share price has struggled in 2020 and is down more than 36% for the year.

More reading

• ‘Destroyed’: AMP faces more sexual harassment allegations
• If you invested $10,000 into Zip shares in March, here’s how much you’d have today
• How to boost your share market gains
• Should you wait for a market crash to invest, or just use dollar-cost averaging?
• ASX 200 down 1.25%: Big four banks tumble, Cleanaway impresses, Whitehaven disappoints

Motley Fool contributor Nikhil Gangaram 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 Cardno shares tank 11% despite beating guidance appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hvrM47

The Flexigroup Limited (ASX: FXL) share price is on the sidelines today after the company announced a trading halt for equity raising. The news comes alongside Flexigroup’s release of its FY20 results, as the company looks to pivot its strategy in the coming 12 months.

The Flexigroup share price was $1.30 at close of trade yesterday, after clawing back from a 52-week low of 38 cents when it bottomed out in March.

So what were the FY20 highlights for the buy now, pay later (BNPL) group? And what are the details of its strategy update?

Flexigroup FY20 result

There were some positive takeaways from the Flexigroup result overall. Its FY20 net profits remained in the black at $21.4 million, active customers were up 30% to 2.3 million compared to FY19, and transaction volumes lifted 17% on last year’s levels to $2.5 billion.

Its BNPL operations delivered as much as 18% volume growth, reflecting strong performances from Australia, New Zealand and Ireland. Notably, Flexigroup’s Australian online volume increased by 172% overall in FY20 and 262% in the second half of this financial year. This is reflected in booming online retail sales via BNPL more broadly.

On the other hand, revenues for the company slumped 5% to $450 million and the net profit result was 6.5% lower. This weaker overall financial performance has prompted Flexigroup to scrap its dividend payout for the time being.

As a result, Flexigroup has initiated a 1 for 3.20 entitlement offer, expecting to raise $140 million in additional equity. $115 million of this figure will be underwritten. The company said these added funds would provide “balance sheet flexibility and support the sustainable and profitable growth outlook”.

Strategic update

The company’s new strategy will focus around the humm platform. To maximise the platform’s profitability potential, Flexigroup and its flagship products will be rebranded under the one name. This would simplify the business around “a unifying value proposition of interest-free instalment payments for consumers and SMEs”.

Flexigroup CEO Rebecca James said:

FY20 has seen Flexigroup make significant progress against its strategy, with the company now primed for sustainable and profitable growth. With the simplification of the business nearly complete, and a common credit decision platform in place across our core consumer product suite, we are ready to put our firepower into larger ticket buy now pay later, and expand our offering with humm90 and bundll.

Flexigroup’s rebranding to humm remains subject to a shareholder vote at the company’s FY20 AGM. A reservation of the ASX ticker “HUM” has already taken place.

James said the rebrand would “simplify our story to our customers and retailers, and clarify our significant market position as a leading BNPL player and provider of long-term interest-free solutions”.

Foolish takeaway

I think a parallel can be drawn between the boom of the buy now, pay later sector and the Australian gold rush that began in 1851.

Companies like Flexigroup are flocking to capitalise on this ‘golden’ opportunity, but to be honest I believe the bigger BNPL players like Zip Co Ltd (ASX: Z1P), Afterpay Ltd (ASX: APT) and Sezzle Inc (ASX: SZL) are a better buy at this point. 

More reading

• Why Bigtincan, Cleanaway, Worley, & Zip Co shares are storming higher
• Zip share price surges 20% on eBay partnership
• The Afterpay share price is up 1,000% in 6 months
• Afterpay share price leaps 7% today after 3 broker upgrades
• Leading brokers name 3 ASX shares to sell today

Toby Thomas owns shares of Sezzle Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended FlexiGroup Limited and Sezzle Inc. 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 Flexigroup share price in trade halt ahead of capital raise appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hw6Olp

In late morning trade on Wednesday the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing the benchmark index is down 1.2% to 6,086 points.

Four shares that have not let that hold them back are listed below. Here’s why they are storming higher:

The Bigtincan Holdings Ltd (ASX: BTH) share price is up 3.5% to 90.5 cents. Investors have been buying the AI-powered sales enablement automation platform provider’s shares after the release of its full year results. Bigtincan reported revenue growth of 56% to $31 million and annualised recurring revenue (ARR) growth of 53% year on year to $35.8 million. Pleasingly, management expects this strong form to continue in FY 2021. It has forecast ARR growth of 36.9% to 48% year on year.

The Cleanaway Waste Management Ltd (ASX: CWY) share price has jumped 8% to $2.42. This follows the release of the waste management company’s full year results. Cleanaway was a solid performer in FY 2020 despite the pandemic. It reported an 8% increase in underlying net profit after tax to $152.9 million. This positive form allowed the company to increase its full year dividend by 15.5% to 4.1 cents per share.

The Worley Ltd (ASX: WOR) share price is up 6.5% to $9.71 after delivering strong profit growth in FY 2020. The global engineering company reported a 66% increase in underlying NPATA to $432 million. Also growing strongly was its underlying operating cash flow. It came in at $881 million, up from $239 million a year earlier. This was driven largely by the first full year contribution of the recently acquired Jacobs ECR business.

The Zip Co Ltd (ASX: Z1P) share price has surged 18.5% higher to $8.97. This morning the payments company announced a deal with eBay Australia. That deal will see the newly launched Zip Business offer eBay’s 40,000 Australian small and medium-sized businesses the opportunity to access working capital via the eBay marketplace.

More reading

• Flexigroup share price in trade halt ahead of capital raise
• Zip share price surges 20% on eBay partnership
• Cleanaway Waste share price climbs after earnings, dividend up
• Bigtincan share price storms higher on strong FY 2020 result and guidance
• Investors to look beyond Worley’s big jump in earnings and dividend

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends BIGTINCAN FPO. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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.

The post Why Bigtincan, Cleanaway, Worley, & Zip Co shares are storming higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32ugV3W

The Jumbo Interactive Ltd (ASX: JIN) share price has come under pressure on Wednesday following the release of its full year results.

At the time of writing the online lottery ticket seller’s shares are down 4% to $13.10.

What happened in FY 2020?

It was a bit of a mixed year for Jumbo. After years of explosive growth and margin expansion, Jumbo’s earnings growth came to an end in FY 2020.

For the 12 months ended 30 June 2020, the company posted a 9% increase in total transaction value to $349 million and a 9% lift in revenue to $71 million.

However, a 38.9% increase in administrative expenses to $17.6 million weighed heavily on its profit margins. This increase was predominantly due to the Gatherwell acquisition and positioning the business to underpin planned future growth.

As a result, Jumbo’s underlying net profit after tax came in flat at $26.5 million in FY 2020.

What were the drivers of its results?

During the 12 months the company had to contend with a period of lower jackpot activity. In FY 2019 there were 49 large jackpots, whereas in FY 2020 this reduced to 39 large jackpots.

This lower activity was offset by the shift to online playing during the pandemic, which underpinned a 9% increase in active customers to 827,411.

The company’s founder and CEO, Mike Veverka, commented: “Covid-19 restrictions helped drive players online which helped deliver an increase in ticket sales despite lower jackpots compared to the previous strong year.”

“In addition, the Software as a Service business continues to grow with the signing of our 5th contract with the “Classics for a Cause” lottery and the completion of the onboarding process for the Mater Lottery”, he added.

Dividend.

The Jumbo board declared a final fully franked dividend of 17 cents per share, down from 21.5 cents per share a year earlier.

This took its full year dividend to a total of 35.5 cents, down 1 cent from 36.5 cents in FY 2019.

Outlook.

No guidance was given for FY 2021 with today’s result.

Instead, the company spoke about its long term prospects, reminding investors that it has signed a 10 year reseller agreement with Tabcorp Holdings Limited (ASX: TAH). It notes that 28% of lottery ticket sales are made online in Australia, which gives it a long runway for growth.

It also spoke about its large global total addressable market (TAM) for its SaaS business. It estimates that the business has a $26 billion TAM in Australia, UK, Canada, and USA.

More reading

• Jumbo Interactive share price on watch after signing Tabcorp deal
• Why I would buy Nearmap and this ASX mid cap share right now
• 50% off: 2 dirt cheap ASX shares to buy today
• 3 mid cap ASX shares that could generate strong long term returns
• 3 stellar mid cap ASX shares to buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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 Jumbo share price drops lower on flat FY 2020 profits appeared first on Motley Fool Australia.

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