ASX 200 up on Tuesday

The S&P/ASX 200 Index (ASX:XJO) went up on Tuesday. Link Administration Holdings Ltd (ASX:LNK) shares went up after another takeover offer.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.20% to 6,688 points today.

Here are some of the highlights from the ASX:

Link Administration Holdings Ltd (ASX: LNK)

The Link share price went up 14% today after the company revealed there was another takeover offer.

This one is a conditional, non-binding indicative proposal from SS&C Technology Holdings to buy the whole business. SS&C is a NASDAQ-listed global provider of investment and financial software services and healthcare software. It’s headquartered in Connecticut and has 150 offices in 35 countries.

The cash offer price from SS&C is $5.65 per share.

Adairs Ltd (ASX: ADH)

The Adairs share price went up almost 3% today after the home furnishings business released a trading update and earnings guidance.

Adairs said that after 23 weeks in the first half of FY21, total Adairs sales were up 23.4%.

Adairs stores sales were up 5.2%. When only including open stores like for like sales were up 17.3% (which excludes Melbourne stores when they were closed). Online sales were 99.7% higher and Mocka sells went up by 45.1%. Online sales represented 39% of total sales.

Adairs said that its gross profit margin was well above FY20 after a consistent focus on that side of things.

The company gave some guidance for the first half result. It’s expecting group sales to be between $235 million to $245 million, up from $179 million.

It’s also expecting total underlying earnings before interest and tax (EBIT) to be between $62 million to $66 million, up from $23.2 million.

G8 Education Ltd (ASX: GEM)

The G8 Education share price fell by 6.6% today after the childcare operator gave a trading update.

The company said that occupancy and attendance is recovering well with current like for like occupancy at 75.5%.

Management said that costs are being well managed, supporting selective investments in resources, as well as repairs and maintenance, in the fourth quarter of 2020. Revenue and costs are underpinned by government support.

Calendar year to date (to 30 November 2020) underlying earnings before interest and tax (EBIT) was $98 million, including current year wage costs relating to the employee payment remediation program.

Total one off costs of the employee remediation program is currently estimated to be $50 million to $80 million, pre-tax.

It’s still working on an improvement program covering around 100 centres. The divestment plan for previously impaired centres is progressing to plan and the sale of the Singapore business has completed.

G8 said it has a strong balance sheet and it’s now broadly cash neutral.

Bank of Queensland Limited (ASX: BOQ)

The Bank of Queensland share price fell 1% after providing a business update for its performance and COVID-19 relief.

The CEO and managing director of BOQ George Frazis said: “BOQ continues to execute on its transformation program with the family and friends phase 1 launch of the Virgin Money digital bank going live this week. We reconfirm the FY21 outlook for BOQ to deliver broadly neutral jaws.”

As at 30 November 2020, BOQ has 2,500 housing loans remaining in deferral with balances of $889 million. This balance represents 3% of BOQ’s housing loan portfolio. BOQ has 3,300 SME loans remaining on deferral with balances of $390 million. This balance also represents 3% of BOQ’s total SME lending.

Mr Frazis said: “It is really pleasing to see the vast majority of our customers who accessed the banking relief package resuming repayments. We will continue to work with the remaining 3% of customers still accessing our banking relief packages to support them in their recovery.”

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Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and Link Administration Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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