Earnings Update: MYOB Group, Nine Entertainment, Perpetual Limited, Macquarie Atlas
Various companies release financial results
MYOB Limited Narrows Losses for FY15
MYOB Group Limited (ASX:MYO) released financial results for FY15 showing improvements in overall operations. The company narrowed its losses from $71.57 million (FY14) to $42.25 million in FY15. The pro forma revenue rose 10% to $328 million along with a cash conversion rate of 85%. The management announced a final dividend of 5 cents per share, payable on 5 April 2016.
The company’s Chief Executive Officer, Tim Reed commented on MYOB’s progress: “2015 saw MYOB return to the ownership of public investors, undertaking the largest technology IPO in the history of the ASX. We enter 2016 with great momentum. We believe the accounting industry is transforming, with transaction processing, compliance and advisory services converging into one connected business process.”
Nine Entertainment Raises Dividend and Announces $150m Share Buy-Back
The highlights of the interim report of Nine Entertainment Co. (ASX:NEC) included the $150m share buy-back and 8 cent interim dividend which yields 5.5% at the last closing price. Group-wide revenue fell 5% to $690million, with EBITDA of $127.9million also a 5% reduction. The earnings margin declined 0.7 percentage points to 19.7%. Reported net profit after tax was $78.4 million.
The sale of the Nine Live business has helped strengthen Nine’s balance sheet as the company closed the year with a positive cash balance of $52m, compared with net debt of $524 million at 30 June 2015.
Chief Executive Officer High Marks was “pleased” with the robust result and explained the single-digit percentage decline in revenue: “Competition from both within and outside the sector kept pressure on our revenues. However, our stringent cost focus has resulted in a group-wide cost decline of 5% for the period, mitigating much if the revenue impact.”
Perpetual Lifts Statutory Profit by 10%
Perpetual Limited (ASX:PPT) released healthy results for the first half of FY16, with underlying profit up 2% while staturoty net profit rose 10% over the 1H15 period. The improved result was attributed to underlying new business growth despite the average levels of equity markets being 3% lower which negatively impacted average funds under management. Total operating revenue increased 2% to $3.8 million. Synergies from its TrustCo acquisition assisted the company to reduce its total operating expenses by 2% to $152.7 million.
The board declared a fully franked interim dividend of 125 cents per share for the 1H16 period, up 9% on 1H15 and in consistent with 2H15.
Macquarie Atlas Returns to Profit
The toll operator Macquarie Atlas Roads Limited (ASX:MQA) released an upbeat result for FY15 as the company returned to profit with NPAT of $85.1 million achieved on the back of 3.5% revenue growth. The board declared a full year distribution of 16 cents per share, an increase from 13.2 cents per share in 2014.
Chief Executive Officer, Peter Trent commented on the results: “MQA’s portfolio delivered another pleasing performance in 2015, building on the improvement we saw in 2014. All assets across the portfolio generated improved 2015 traffic, revenue and EBITDA."
Author: Simon Herrmann
Feb 25, 2016
Simon is a financial analyst at independent research firm Wise-owl specialised in small-mid cap growth opportunities and ethical investment opportunities. Simon's aim is to disrupt the cliché approach to investment decision making as he believes that socially and environmentally responsible behaviour is a necessity to long-term wealth creation. Simon has a deep fundamental understanding of the global financial landscape and has compiled 300+ research reports, valuations and corporate appraisals. Simon is commonly featured in major media outlets and his research is published weekly in The Australian.