The share price of Ingenia Communities Group (ASX: INA) fell by 3.75% today after providing an update about the effects of the bushfires on its FY20 guidance.
Ingenia said that none of its tourism parks or those owned by Ingenia’s managed funds have suffered substantial fire damage, however two resident owned homes were lost at Ingenia Lifestyle Lake Conjola.
Business across the tourism parks have also been impacted as tourists and residents were asked to leave the region. Ingenia doesn’t yet know when the parks will return to normal trading conditions because of the lack of operating services and potential further negative conditions. However, Ingenia expects to be able to assess the damage later this week as more access becomes available.
Currently, Ingenia is estimating that tourism revenue across Ingenia’s three South Coast tourism parks is likely to be negatively impacted by at least $2 million. However, Ingenia does have insurance for property loss and gross profits which is expected to mitigate Ingenia’s losses.
Based on the expectation that home sales at Ingenia Lifestyle Lake Conjola will be materially impacted, with 27 settlements forecast in the second half of FY20, Ingenia expects the result to be at the lower end of the guidance range. Earnings before interest and tax (EBIT) growth was expected to be between 15% to 20% and underlying earnings per share (EPS) growth is expected to be 5% to 10%.
This Tiny ASX Stock Could Be the Next Afterpay
One little-known Australian IPO has doubled in value since January, and renowned Australian Moonshot stock picker Anirban Mahanti sees a potential millionaire-maker in waiting...
Because 'Doc' Mahanti believes this fast-growing company has all the hallmarks of genuine Moonshot potential, forget 'buy now pay later', this stock could be the next hot stock on the ASX.
Doc and his team have published a detailed report on this tiny ASX stock. Find out how you can access what could be the NEXT Afterpay today!
Returns as of 6th October 2020
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.