It was yet another busy day on the market on Monday as the end of earnings season draws closer.
Two results which may have slipped under the radar today are summarised below. Here's why I think they are worth knowing about:
The Fleetwood Corporation Limited (ASX: FWD) share price climbed 7% to $3.05 after the provider of accommodation solutions and recreational vehicles, parts, and accessories returned to profit. Fleetwood posted a 16% increase in revenue to $330 million and net profit after tax of $9.4 million. I felt this was an impressive turnaround from last year's loss of $11 million and can't say I'm surprised to see its shares charge higher.
The main driver of growth for the company was demand from the affordable housing sector. This was complemented by continued growth in education markets and sound working capital management. Although the company provided no formal FY 2018 guidance, management was confident enough in its outlook to declare a fully franked 5 cents per share dividend.
The Noni B Limited (ASX: NBL) share price climbed 5% to a multi-year high of $2.10 after the retailer posted a 187% increase in full-year revenue to $316.8 million. This strong top line result came courtesy of a ten-month contribution from the Pretty Girl business and continued strong growth in the rest of the Noni B business. Like-for-like sales grew 2.4% in FY 2017 thanks largely to a particularly strong performance in the second-half.
Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at $22.9 million. This came in ahead of the earnings guidance of $20.9 million that management issued when it acquired the Pretty Girl business. Pleasingly, despite the competitive environment, management expects the company to generate a substantially higher financial result in FY 2018. In light of this, I continue to believe Noni B is one of the best investment options in the retail industry right now.
