Results season continued last week with decent results pushing the ASX higher. Rate cut expectations saw the S&P/ASX 200 (INDEXASX: XJO) hit a record high on Thursday before closing the week at 7139 points, up 8.8 points or 0.1%.
We take a look at the top 5 ASX share price gainers last week.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway shares rose 20.3% last week to finish at $2.31. The waste management company impressed investors with its half year results, which included a nearly 14% increase in profits.
Cleanaway reported that its financial results highlighted the portfolio nature of its waste services offering. Underlying profit increased despite lower commodity prices for the half and the introduction of the Queensland waste levy which reduced volumes to its Queensland landfill.
Underlying gross revenue increased 4.1% to $1,197.2 million with underlying earnings before interest tax depreciation and amortisation (EBITDA) up 2.5% to $234.6 million. Net profit after tax (NPAT) rose 13.7% to $76.2 million leading to an increase in earnings per share of 15.2% to 3.8 cents a share. An interim dividend of 2 cents per share (fully franked) was declared, an increase of 21.2% over the prior corresponding period.
During the half, Cleanaway completed the acquisition of the SKM Recycling assets and of a small solid waste collections business in western Victoria. Cleanaway expects to deliver earnings growth in 2HFY20 over 1HFY20 and 2HFY19. The waste manager is targeting EBITDA of $515 million to $525 million (post AASB 16) for FY20.
AMP Limited (ASX: AMP)
Shares in AMP rose 12.9% last week to finish the week at $2.06. While there was no news from the wealth manager last week, there were a number of director buys. Two directors bought a total of 134,108 shares, while chief executive Francesco de Ferrari acquired 1,020,408 shares, which had been converted from share rights. De Ferrari, however, also sold 1,224,488 shares at $2.05 a share.
The purchase of shares by 'insiders' such as directors can be a sign that those with the most insight into a company view its shares as undervalued. Directors often have exclusive insights into the companies they manage and are likely to purchase shares when they view them as undervalued.
Depending on the circumstances, the purchase by a director of shares can be seen as a vote of confidence in a business. Buys by multiple directors can act as a stronger signal, as can larger, rather than smaller, share purchases. The insider buying by AMP directors may be a sign that they are confident De Ferrari's transformation strategy could deliver a much needed turn around for the company.
AMP shares have started this week down 3.16% at $2.00 per share.
NRW Holdings Limited (ASX: NWH)
The NRW Holdings share price increased 12% last week to finish the week at $3.18. NWH Holdings' half year results impressed the market with revenue up 55% $808.7 million.
The mining services providers delivered first half EBITDA of $94.6 million, up 27% on the prior corresponding period. Net profit after tax and amortisation (NPATA) increased 28% to $41.2 million and an interim dividend of 2.5 cents per share (fully franked) was declared, up 25% from 1HFY19.
NRW Holdings also completed its acquisition of BGC Contracting during the half (now renamed NRW Contracting). The acquisition is predicted to drive profits even higher, with NRW Contracting winning a $138 million rail construction contract with Fortescue Metals Group Limited (ASX: FMG)'s Eliwana project in Western Australia.
"The acquisition of BGC Contracting which completed in December will make a significant contribution to the second half performance and will support further business growth," NRW Holdings chief executive and managing Director Jules Pemberton said.
The acquisition cost $270.1 million was funded through equity ($116.4 million) and assumed debt net of cash in BCG Contracting ($152.7 million). BCG Contracting has an existing contract portfolio and order book of ~$1.5 billion with ~$800 million currently scheduled for delivery in FY20.
NRW Holdings hasn't been able to hold on to all of its share price gains today, with shares dropping 4.72% in morning trade.
Viva Energy Group Ltd (ASX: VEA)
The Viva Energy share price rose 11.2% last week to close out the week at $1.89. The share price leapt on Friday morning following the announcement that Viva Energy had sold its 35.5% stake in Viva Energy REIT (ASX: VVR) at $2.66 per VVR security. On completion, Viva Energy will receive $734.3 million, for an estimated $112.9 million in pre-tax profit. The sale is expected to settle this week.
The divestment followed a strategic review of Viva Energy's equity holding in the REIT. Viva Energy completed the IPO of the Viva Energy REIT in 2016, retaining a 40% holding which reduced over time to 35.5% due to subsequent capital raisings by the REIT. Since its inception the Viva Energy REIT has performed strongly, growing its portfolio of service station assets from 425 to 469.
Viva Energy has a network of over 1260 service stations, 440 of which are held under long term leases with the REIT. As the major tenant of the REIT, Viva Energy has a strong relationship with the it and lease arrangements provide Viva Energy with long-term security of tenure in relation to leased sites.
Southern Cross Media Group Ltd (ASX: SXL)
Southern Cross Media Group shares rose 9.8% last week to close the week at 84 cents after the media group delivered better than expected half year results. Weak media markets have weighed on the Southern Cross, however it was able to deliver results in line with guidance issued in October.
Southern Cross Media saw revenue decline to $308.1 million in 1HFY20, down 8.2% from $335.7 million in 1HFY19. Excluding AASB 16 treatment of leases, EBITDA declined 27.7% to $62.2 million from $84.8 million. Underlying EBITDA was down 26.7% to $62.2 million from $84.8 million.
The media group reported NPAT of $20.4 million, up significantly from the $119.2 million loss reported in 1HFY19. Underlying NPAT, however, declined by 31.1% to $28.6 million from $41.5 million in 1HFY19. An interim dividend of 2.75 cents per share was declared, down 26.7% from 3.75 cents in the prior corresponding half year.
Southern Cross shares have lost some of their gains today, however, with the media group's share price plummeting 5.71% in morning trade.
