The month of August is always an important one on the ASX given that the majority of companies release their full year financial results during the period.
While the just completed reporting season could be considered as lacklustre, there were a handful of companies which investors responded positively to. Adding to the headwinds which investors had to endure during August was heighted global stock market volatility which helped push the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down a total of 8.6% over the course of the month.
In comparison the following three stocks all headed higher in August.
- Village Roadshow Ltd (ASX: VRL) ended the month up 8.8% after reporting all time record Theatre Exhibition results which saw earnings jump around $10 million. While Theme Parks were a drag on earnings after experiencing record rain, Village Roadshow still managed a solid increase in earnings before interest and tax (EBIT) from $97.7 million to $105.5 million.
- Smartgroup Corporation Ltd (ASX: SIQ) ended the month up 22.5% after reporting a 33% increase in normalised profit to $11.3 million and declaring a fully franked dividend of 7.9 cents per share on the back of a 24% rise in normalised revenues to $43.1 million for the half-year ending June 30.
- SMS Management & Technology Limited (ASX: SMX) ended the month up 26.6% after the information technology (IT) services firm reported a 13% rise in revenues, a 34% surge in profits and a 33% jump in the final dividend. A particular highlight for SMS shareholders was news that the group had signed contracts worth $411 million during the year, up 18% on the prior period.
With management at all three companies providing positive guidance on the outlook for the current financial year, continued momentum is a possibility.
