Tag: Motley Fool

If you’re wanting to make long term investments, then you might want to consider the tech sector.

This is because I believe the sector is home to a large number of shares with the potential to grow their earnings at a very strong rate over the next decade. This could lead to their shares providing investors with outsized returns over the period.

With that in mind, here are three ASX tech shares that I would buy right now:

Afterpay Ltd (ASX: APT)

I think Afterpay is worth considering as a long term investment. This is due to the increasing popularity of the buy now pay later payment method with consumers and merchants and Afterpay’s leadership position in the industry. I believe this leaves it very well-positioned to continue it meteoric growth in the coming years.

Especially given its strong start to life in the United States market which is worth an estimated $5 trillion a year. In addition to this, Afterpay looks likely to bolster its growth in the coming years through expansion into new territories. Canada is coming this financial year and I suspect Europe and even Asia could soon follow. I also wouldn’t be surprised if the company launches new products and solutions in the future that complement its core business.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX tech share which I think has enormous potential is Pushpay. It is a donor management platform provider for the faith and not for profit sector. The company has been growing its sales and operating earnings at an explosive rate in recent years thanks to strong demand in a church market that is rapidly embracing digital transformation. 

This has certainly been the case during the coronavirus pandemic. With many churches closing their doors due to social distancing restrictions, they have been using Pushpay’s platform to reach their congregation in new ways. In addition to this, the shift to a cashless society has made it even more important for churches to be able to accept donations through modern payment methods. Overall, while Pushpay is operating in a niche market, it is a very lucrative one. Management is currently aiming to grow its revenue to US$1 billion a year, up from ~US$125 million currently.

More reading

• Why Warren Buffett would never buy Afterpay shares
• Can these two ASX buy now, pay later companies become the next Afterpay?
• Take a look at last week’s best performing ASX shares
• 3 five-star ASX shares to buy
• 2 important investing lessons you might have forgotten

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 I would buy Afterpay and this quality ASX tech share appeared first on Motley Fool Australia.

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ASX growth shares typically share pay a low dividend or no dividend at all. However, over the long-term you can benefit from strong capital gains. This means you can build wealth build over time, and take advantage of some handy tax benefits.

Let’s look at 2 ASX growth shares that are in my buy zone right now.

ASX growth share 1: Bubs Australia Ltd (ASX: BUB)

Bubs Australia has established a portfolio of premium, high-margin brands of goat milk products in the Australian market. The company concentrates on selling infant formula products. However, its product range now also spans organic baby food, cereals and toddler snacks, as well as adult goat dairy products.

Over the last 12 months, the Bubs share price trended downwards until mid-March, falling to $0.445. It then surged higher in the subsequent period to mid-May, reaching $1.135 on May 13. That’s an increase of 155% in just 2 months. Since then, the Bubs share price has lost a bit of ground, but is still trading well above its mid-May levels.

Recent revenue growth for Bubs has been very impressive. Bubs delivered a 67% increase in revenue to $19.7 million in Q3 FY20 to 31 March 2020, compared to the prior corresponding period. I believe that Bub’s Asian strategy will help to push its share price higher in the years to come. Local demand for its goat dairy products is also likely to remain strong.

2: SEEK Limited (ASX: SEK)

SEEK has a highly entrenched position as Australia’s largest online employment portal. No other competitor has been able to make any real inroads into its commanding market share over the past decade.

However, the significant negative impact of the coronavirus pandemic, led to a disappointing FY 2020 result and SEEK’s share price fell sharply. Revenues in Australia and New Zealand were significantly impacted, falling by 12%. In a mature local market, SEEK’s local financial performance is now closely tied to local market conditions.  SEEK did however manage to deliver a modest a 2.6% increase in overall revenue to $1,577.4 million for the 12 month period.

SEEK will no doubt face further challenges in the months ahead due to the heavy toll that the pandemic is having on the employment markets in its local and overseas operations.

However, over the longer term, I believe that SEEK is still well-positioned for solid growth.  SEEK management’s high aspirational revenue goal of $5 billion by FY25 still remains in place. I believe that this target still appears to be achievable. SEEK’s Investment division continues to perform well despite pandemic challenges, and I see this strong growth as continuing. SEEK has also laid the foundation to achieve strong growth from its Asia Pacific and Americas operations once the pandemic subsides.

Foolish Takeaway

Both Bubs and SEEK are ASX growth shares that I believe are well-placed for above average growth over the next five years.

More reading

• 2 ASX shares you could invest $500 into
• Brokers remain bullish on the SEEK share price
• 2 exciting high-growth ETFs to buy for high returns today
• ASX 200 drifts 0.1% lower, CBA reports solid FY20 result
• Is BetaShares Australia 200 ETF the best ASX ETF?

Motley Fool contributor Phil Harpur owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO. The Motley Fool Australia has recommended SEEK 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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At lunch on Monday the S&P/ASX 200 Index (ASX: XJO) is giving back some of last week’s strong gains. The benchmark index is currently down 0.85% to 6,075 points.

Here’s what is happening on the market today:

JB Hi-Fi result impresses.

The JB Hi-Fi Limited (ASX: JBH) share price is pushing higher on Monday after the release of its full year results. The retail giant had a very strong 12 months and delivered an 11.6% increase in total sales to $7.9 billion and a 33.2% lift in underlying net profit after tax to $332.7 million. This strong profit growth resulted in JB Hi-Fi increasing its full year dividend by the same margin. It is paying a 90 cents per share fully franked final dividend, bringing its total dividend to 189 cents in FY 2020. This is 33.1% higher than FY 2019’s dividend.

Altium delivers solid profit and revenue growth.

The Altium Limited (ASX: ALU) share price pushing higher today after it delivered a full year result in line with expectations. The electronic design software company delivered revenue growth of 10% to US$189 million and a 13% lift in EBITDA to US$76.63 million. This was despite the pandemic putting pressure on its end of year sales. Looking ahead, the company continues to target revenue of US$500 million by 2025. Though, it has warned that the pandemic could push this back by 6 to 12 months.

Bendigo and Adelaide Bank sinks on profit collapse.

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is sinking lower on Monday after the release of its full year results for FY 2020. Tough trading conditions led to Bendigo and Adelaide Bank reporting a 27.4% decline in cash earnings after tax to $301.7 million. In light of this, the bank deferred its final dividend decision. Unfortunately, FY 2021 may not be much better. Management warned that market conditions were expected to remain challenging this year.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Monday has been the Beach Energy Ltd (ASX: BPT) share price with a 5.5% gain. This follows the release of the energy producer’s full year results and its growth outlook through to FY 2025. Beach advised that it is on track to deliver production of 37 to 43 MMboe by FY 2025. This is up from 26.7 MMboe in FY 2020. The worst performer has been the GWA Group Ltd (ASX: GWA) share price with a 9% decline following the release of a disappointing full year result.

More reading

• Why Bendigo and Adelaide Bank, Kogan, NAB, & Treasury Wine are dropping lower
• GWA share price sinks 10% following annual result
• Why Altium, Beach, JB Hi-Fi, & Starpharma shares are charging higher
• Bendigo and Adelaide Bank share price craters as net profit slumps 49%
• Beach Energy share price on watch as production misses guidance

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 Altium. 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 share price of fintech neo-lender Wisr Ltd (ASX: WZR) has performed strongly over recent months, driven by the company’s robust fourth quarter FY20 results. Since falling to a low of 6.6 cents in March, the Wisr share price has rallied 233% to 22 cents at the time of writing.  

Wisr offers an alternative to the traditional forms of personal lending provided by the major banks. It claims to offer more competitive interest rates by tailoring loans to meet customer needs and eliminating early repayment penalties and annual fees.

The company has also released an app that allows users to round up their purchases and automatically pay the funds collected towards their debts – even if those debts are held with outside lenders. There are a number of ASX-listed companies with similar apps: small-cap Raiz Invest Ltd (ASX: RZI) employs a similar ’round up’ technique, but allows users to invest their spare change into a diversified share portfolio.

Wisr hopes this more holistic approach towards personal financing will help the company differentiate itself from the major banks in the wake of the Banking Royal Commission. Wisr seeks to market itself as a more ethical, compassionate alternative to the profit-driven major lenders.

It joins a host of other next generation and alternative credit providers, including buy now, pay later (BNPL) companies like Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P), which are stealing market share away from traditional lenders.

And from the company’s most recent quarterly results, it seems like its message is beginning to resonate with customers. The company reported record monthly loan originations of $19.1 million in June, which brought total loan originations for the fourth quarter to $42.2 million, a 92% increase over fourth quarter 2019. Unaudited operating revenue for the quarter jumped to $2.9 million, a 50% increase quarter-on-quarter.

Is the Wisr share price a buy?

Neo-banks like Wisr are capitalising on a number of converging macroeconomic trends.

Australian consumers were already wary of the major lenders following some of the more damning findings to come out of the Royal Commission. Additionally, the success of BNPL platforms shows that consumers have an appetite for small, tailored credit. Additionally, the COVID-19 pandemic means that more people may have to rely on short-term credit to meet their everyday living expenses.

I believe Wisr has some strong momentum behind it, making it an exciting investment opportunity with the potential for rapid growth. Market penetration is still low, and the company is well capitalised, with $40 million of cash and equivalents.

However, the positives must also be weighed against the potential risks stemming from a looming economic downturn. Wisr has reported that its loan origination run rate is now 45% over pre-COVID levels. And while its portfolio average credit score is well above the industry average and 90+ day arrears still quite low at 1.44%, it will be worth monitoring how these metrics track once COVID-19 government support packages start to dry up.

More reading

• MoneyMe share price surges, but is it sustainable?
• Wisr share price surges 10% on loan growth

Rhys Brock owns shares of AFTERPAY T FPO and ZIPCOLTD FPO. 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.

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ASX gold share prices have been going gangbusters as the price of the yellow metal hit new record highs in US dollars.

Gold started 2020 trading for US$1,517 (AU$2,085) per troy ounce. It peaked on August 6 at US$2,063 per ounce, before settling down to today’s price of US$1,933.

Even with the past week’s retracement, that’s still a smashing 27% gain year-to-date gain for bullion. And those gains have been mirrored, and often magnified, by many ASX gold shares.

The Regis Resources Limited (ASX: RRL) share price is up 28% year-to-date, giving the Aussie gold miner a market cap of more than $2.8 billion.

Then there’s Northern Star Resources Ltd (ASX: NST), one of the bigger players, with a market cap of $10.53 billion. The Northern Star share price has gained 25% since 2 January.

Gold fever driving share price gains

In a tough year for shares, these are the kinds of share price gains that grab investors’ interest. Though surely not Warren Buffett, right? After all, the Oracle of Omaha is well-known for his disdain for bullion.

Here’s one of Buffett’s many comments on gold:

[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

Well, the Martians must be doing some head scratching today.

A regulatory filing released on Friday revealed that Buffett’s Berkshire Hathaway bought 20.9 million shares of Barrick Gold Corp (NYSE: GOLD), currently worth US$565 million (AU$785 million), in the second quarter.

The news saw a surge of interest in Barrick shares. Barrick’s share price is up 8.2% in after-hours trading. Year-to-date Barrick’s share price is up 46%.

Moving on from gold…

Top fundies analyse ASX share price moves, post-profit reports

I hope you managed to unplug over the weekend. And if you’re a Queenslander that should have been a long weekend with the Friday People’s Day holiday.

Last week was a big one in the financial world, ushering in the first full week of company profit reports.

To date, 60% (31 out of 52) of the ASX 300 companies that have released their results saw their share prices rise following the announcement. That’s not to say they all posted strong results in the current COVID-19 environment. Far from it.

But as AMP Capital portfolio manager Dermot Ryan notes, many of these companies have been remarkably adaptable.

Ophir Asset Management senior portfolio manager Andrew Mitchell adds that share prices received a welcome lift due to investors’ low expectations.

Here’s their take in more detail, as quoted by the Australian Financial Review:

AMP Capital portfolio manager Dermot Ryan:

Some companies have been able to get through this pretty well, and it’s still quite early days with the bulk of the earnings ahead. But in general, this just shows how adaptable these companies have been.

Coming through with higher dividends is pretty important given it’s a difficult income backdrop. The companies that have the balance sheet flexibility can give some dividend guidance and that will provide some strong support on the bumpy path to recovery. … There’s been a move online, a surge in spending, and it’s accelerated some trends.

Ophir Asset Management senior portfolio manager Andrew Mitchell said:

One big theme we have seen is a number of companies getting a share price boost after beating low expectations. It just goes to show how much pessimism was baked in by the market…

Surprise, surprise, but there’s been a real lack of guidance by companies and if they do it has been super conservative. Many will no doubt be hoping to under-promise and over-deliver in this next financial year.

With a lack of forward guidance and increased investor interest in reliable dividends, the Motley Fool’s own Edward Vesely’s advice comes to mind.

Here’s what he wrote to members of his Dividend Investor service:

It’s not a good idea to come under the spell of fluctuating share prices in the short term. A good way to distract your attention from share prices, in my opinion, is to focus more on dividends, and a company’s earnings from which these are derived.

It’s this investing dogma that saw Edward recommend Sonic Healthcare Limited (ASX: SHL) to his members on 17 March. Sonic pays a 2.5% dividend yield that’s 26% franked. Sonic’s share price is up 28% since Edward’s recommendation.

More reading

• Why November could be the best time to re-join the gold bull run
• Take a look at last week’s worst performing ASX shares
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to sell next week
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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 Warren Buffett is buying gold shares and top fundies assess ASX share price moves appeared first on Motley Fool Australia.

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In late morning trade 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% to 6,064.8 points.

Four shares that are falling more than most today are listed below. Here’s why they are dropping lower:

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is down 5.5% to $6.60. Investors have been selling the regional bank’s shares following the release of its full year results. Bendigo and Adelaide Bank reported a 27.4% decline in cash earnings after tax to $301.7 million. In light of this, the bank deferred its final dividend. Management warned that market conditions were expected to remain challenging in FY 2021.

The Kogan.com Ltd (ASX: KGN) share price has fallen almost 4% to $21.02. This follows the release of the ecommerce company’s full year results this morning. Kogan reported a 39.3% increase in gross sales to $768.9 million and a 57.6% increase in adjusted EBITDA to $49.7 million in FY 2020. This was driven by the accelerating shift to online shopping which underpinned a 35.7% increase in active customers to 2,183,000. Investors may have been expecting an even stronger result.

The National Australia Bank Ltd (ASX: NAB) share price is down over 2.5% to $17.73. This morning analysts at Macquarie retained their underperform rating and $17.50 price target on the banking giant’s shares. Macquarie believes the next 12 months will be difficult for the bank given the limited cost reduction opportunities in the current environment.

The Treasury Wine Estates Ltd (ASX: TWE) share price has tumbled almost 5% to $12.23. This appears to have been driven by profit taking after some strong gains by the wine company last week. Treasury Wine’s shares raced 17.5% higher last week following the release of its full year results. Although that result was weak, cost cutting plans and news that sales in China have rebounded strongly appeared to get investors excited.

More reading

• ASX 200 down 0.85%: JB Hi-Fi impresses, Altium shoots higher, Bendigo and Adelaide Bank sinks
• Bendigo and Adelaide Bank share price craters as net profit slumps 49%
• Kogan share price lower despite stunning FY 2020 growth
• These were the highlights of ASX reporting season last week
• Take a look at last week’s worst performing ASX shares

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended Kogan.com 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.

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When a company director or insider buys shares in their own business, does that mean it’s a good time to buy in? We take a look at two ASX industrial shares with recent director buys. 

What is insider buying?

Insider buying is when an executive, such as a director, buys shares in their own company. Insiders usually have exclusive insight into the companies they manage and are more likely to buy shares they view as undervalued.

A share purchase by a company insider can be seen as a vote of confidence in a business. And the signals are stronger with multiple insider buys and larger share purchases.

Let’s look at 2 ASX industrial shares that have seen multiple insider buys recently.

Phoslock Environmental Technologies Ltd (ASX: PET) 

The Phoslock share price dropped sharply at the end of July when the water treatment company revealed a substantial decline in first half revenues due to project delays.

Flooding and COVID-19 impacts affected progress on key projects, although the company says it is well-positioned to restart when circumstances improve. Two directors took advantage of the downturn to top up their shareholdings, purchasing 150,000 shares in the ASX industrial share in early August. 

While projects in China and Europe have been delayed, Phoslock believes they will continue in due course. The company says the pipeline remains strong with a current contract value of $380 million. Many projects have been unaffected by the coronavirus pandemic and Phoslock has confidence in developing US activity.  

Downer EDI Limited (ASX: DOW)

Downer EDI launched a $400 million equity raising at the end of July after warning of an expected $150–$160 million statutory loss for FY20. The company attributes the loss primarily to impairments, remediations, and historical claims adjustments. Downer EDI’s share price fell to a low of $4.02 in early August, prompting one director to buy 10,470 shares on-market. 

The ASX industrial share reported that cash performance improved materially in 2H FY20 despite the impacts of COVID-19. Underlying EBITDA is expected to be $410–$410 million, and underlying net profit after tax adjusted $210–$220 million.

Downer is conducting a takeover bid for Spotless, which is a key part of its urban services strategy. Funds from the equity raising will help pay for the acquisition. 

More reading

• Take a look at last week’s best performing ASX shares
• Brokers have upgraded 3 ASX shares to the buy zone. Here’s why
• Downer share price edges higher on takeover bid
• These were the worst performing ASX shares last week
• Phoslock share price collapses on poor results

Motley Fool contributor Kate O’Brien 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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Investing in gold and silver has always been considered a safe-haven in times of economic uncertainty. The silver spot price has been storming higher this year and companies like Silver Mines Limited (ASX: SVL) are reaping the rewards.

Recently this month, the spot price for gold hit an all-time high. Silver reached its peak back in April 2011. However, the white metal has been gaining a lot of traction. Could this be the start of something bigger for the silver industry?

Silver Mines in a nutshell

Silver Mines is Australia’s largest pure play silver company with expertise in exploration and development of quality silver projects. Its portfolio consists of the Conrad and Webbs projects, the Tuena Project and its recently acquired Bowdens Silver Project. The latter of which is said to have substantial resources as one of the world’s largest undeveloped silver sites – a mineral resource of 275 million ounces of silver equivalent.

What is fuelling the Silver Mines share price rise?

The Silver Mines share price raced higher last Friday, up 6.3% to close last week’s trade at 25 cents. It has since pulled back slightly in today’s trade, sitting at 24 cents at the time of writing.

With no new announcements to the market, last week’s surge is most likely due to the demand for the white metal. At the time of writing, the spot price for silver is $36.07 per ounce.

Over the past few months, silver has risen sharply compared to its more expensive cousin, gold (50% vs. 8% in the last 60 days).

The explanation for this is historically silver has higher beta than gold. In layman’s terms, if the spot price of gold moves up by 5%, silver will increase by 10%.

However, the same is to be said for the reverse scenario, i.e. if gold falls 5% for the day, silver will fall 10%.

What is the outlook for Silver Mines?

The metals mining outfit has strategically positioned itself for future growth. In May, the company announced it had raised $12 million through capital raising to primarily fund its pre-development progression on the Bowdens Project. Drilling has expanded up to 10,000 metres, targeting high-grade silver mineralisation below the current proposed pit and in multiple new areas. Drilling is expected to continue at least until the end of 2020.

Furthermore, Silver Mines submitted a development application to the NSW Department of Planning, Industry and Environment for an open-cut mine and processing plant with a conventional milling circuit at the Bowdens Project.

Silver Mines released its activities report for the quarter end in late July. This saw the company end the quarter with $1.61 million in total outgoings and $12.1 million cash on hand.

Should you buy?

While past performance is no guarantee for future results, I believe that the Silver Mines share price could be a risky buy.

As a long-term investor, I think it would be prudent not to jump in and buy Silver Mines shares for the time being.

Instead, I’ll be keeping a close eye on the Silver Mines share price at this time and wait for further results on its Bowdens Project.

More reading

• The Silver Mines share price is up, so is now a good time to buy?
• The Silver Mines share price has hit a 52-week high. 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.

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The GWA Group Ltd (ASX: GWA) share price has fallen 10.47% today after the company released its results for the year to 30 June 2020. At the time of writing, the GWA share price has slumped to $2.48 from Friday’s closing price of $2.77.

What was in the announcement?

According to the company, revenue was up 4% in the year to 30 June 2020 to $398,704,000. This was against revenue of $381,730,000 in the year to 30 June 2019.

Earnings before interest and tax from normal activities were down 41% to $70,297,000 in the year to June 30 from $119,440,000 in the year to 30 June 2019.

Net profit after tax was down 53% to $43,886,000 in the year to 30 June 2020, compared to $94,044,000 in the year prior. Net profit in the year to 30 June 2019 included profit from the sale of the company’s door and access systems business, which contributed $50.8 million to net profit after tax in that year.

GWA announced a final dividend of 3.5 cents per share, taking dividends for the full year to 11.5 cents, fully franked. The company also resumed its dividend reinvestment plan with shares offered at a 1.5% discount under the plan.

GWA Group CEO and Managing Director, Tim Salt, commented on the results stating;

“In a very challenging year, with significant uncertainty and a strong focus on the health and wellbeing of our people, GWA delivered a disciplined result in FY20.

Our top line was significantly impacted by lower construction activity, merchant destocking in the first half, and the impact of the COVID-19 pandemic and lower than expected merchant restocking in the last quarter of the year.

Our continued focus on operational and cost discipline across the business resulted in a resilient EBIT margin of 18.0 per cent compared to 18.5 per cent in the prior year.

While markets were challenging and compounded by the unforeseen impact of COVID-19, our focus continues to be on controlling those elements within our control.”

About the GWA share price

GWA Group is a supplier of fittings and fixtures to households and commercial premises in Australia and New Zealand. It has been listed on the ASX since 1993.

The GWA share price is up 10.22% since its 52-week low of $2.25, however, it has fallen 26.63% since the beginning of the year. The GWA share price is down 27.06% since this time last year.

More reading

• These were the best performing shares on the ASX 200 last week
• Latest ASX stocks upgraded by top brokers to “buy” today

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.

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The S&P/ASX 200 Index (ASX: XJO) has started the week on a disappointing note. In late morning trade the benchmark index is down 0.9% to 6,070.1 points.

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

The Altium Limited (ASX: ALU) share price is storming 4% higher to $34.80. This follows the release of the electronic design software company’s full year results. Altium delivered revenue growth of 10% to US$189 million and a 13% lift in EBITDA to US$76.63 million. This result was in line with expectations. Looking ahead, management continues to target revenue of US$500 million by 2025. Though, it warned the pandemic could push this back 6 to 12 months.

The Beach Energy Ltd (ASX: BPT) share price has jumped 7% to $1.58 following the release of its full year results. The energy producer posted underlying EBITDA of $1,108 million for FY 2020. This was down 19% on the prior corresponding period and driven by a 21% decline in its realised oil price. Looking ahead, Beach advised that it is on track to deliver production of 37 to 43 MMboe by FY 2025. This is up from 26.7 MMboe in FY 2020.

The JB Hi-Fi Limited (ASX: JBH) share price has surged 5% higher to $49.71. This morning the retail giant released its full year results and revealed an 11.6% increase in total sales to $7.9 billion and a 33.2% lift in underlying net profit after tax to $332.7 million. This led to JB Hi-Fi increasing its final dividend by 76.5% to 90 cents per share. Which means its total FY 2020 dividend is up 33.1% year on year to 189 cents per share.

The Starpharma Holdings Limited (ASX: SPL) share price is up 4.5% to $1.08. This follows news that the dendrimer products developer has signed a new research partnership with leading Chinese pharmaceutical company Tianjin Chase Sun Pharmaceutical. The deal will see the development of several dendrimer enhanced product (DEP) nanoparticle formulations for an anti-infective drug.

More reading

• Beach Energy share price on watch as production misses guidance
• JB Hi-Fi share price on watch following 33% increase in profits
• Altium share price on watch after FY 2020 result
• 5 things to watch on the ASX 200 on Monday
• 3 five-star 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 Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings 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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