ASX 200 drops, Audinate booms, Humm falls

Although ASX 200 fell heavily, the Audinate share price jumped after an update.

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The S&P/ASX 200 Index (ASX: XJO) fell by around 0.9% today to 7,273 points.

Here are some of the highlights from the ASX:

Audinate Group Ltd (ASX: AD8)

The Audinate share price went up around 6.7% today after the business released a trading update.

Audinate announced that it generated US$25 million of revenue in FY21, up 23% from the US$20.4 million in FY20.

The company said that there was a strong finish to the year with the final quarter up 74% on the last quarter of FY20. In Australian dollar terms, FY21 saw $33.4 million of revenue, up from $30.3 million in the prior year.

Audinate also said there are uncertainties in the global supply of chips and electronic components continues to be a near-term risk for both Audiante and its original equipment manufacturer (OEM) customers. The business said it continued to meet customer demand for chips and modules over the past few months despite the minor impacts from a COVID-related shut-down of its contractor's plant in Malaysia and some under-delivery of raw material from suppliers.

The company explained that increasing component lead times and requests by chip manufacturers for demand visibility for up to 12 months out have resulted in a record backlog of committed sales orders for FY22.

Audinate co-founder and CEO Aidan Williams said:

The recent launch of the first Dante video products manufactured by our customers was another substantial milestone and market feedback has been encouraging.

The business said that the Dante video products have been met with a positive initial response from customers.

Humm Group Ltd (ASX: HUM)

The Humm share price fell around 3% today.

Humm announced that it has potential historic exposure to Forum Finance through the decommissioned FlexiGroup managed services business.

The business explained that between 2016 and 2018, FlexiGroup's decommissioned managed services business provided equipment finance to a number of vendor programs in the Australian market.

After recent investigations into Forum Finance Pty Ltd, Humm Group said it has done a review of historical records within the FlexiGroup managed services division, which was decommissioned in 2018.

Records indicate that the FlexiGroup managed services division generated business linked to Forum Finance between 2016 and 2018.

However, following the shutdown of FlexiGroup managed services, the majority of these assets were sold to a third party and transferred off the Humm Group balance sheet in 2018.

At this stage, it has not confirmed if the assets are fraudulent, but simply that they are associated with Forum Finance. Investigations are ongoing.

After an initial review, Humm has estimated that the maximum historical exposure to Forum Finance including receivables on-sold to be $12 after tax.

Abacus Property Group (ASX: ABP)

ASX 200 property business Abacus announced that it has seen valuation gains across its investment portfolio. The Abacus share price went up 0.3%. 

It said that 40 of its investment properties, or 34% of the group's portfolio by number, have been valued externally as at 30 June 2021.

The ASX 200 share's preliminary valuations have resulted in a total estimated increase of $140 million, being a 4.5% increase.

These valuations are expected to increase the pro forma net tangible assets (NTA) by around $0.17 per security to $3.43, an increase of 5.2% on the 31 December 2020 NTA.

Self storage saw the largest change in valuation, with a 10% increase in valuation.

Motley Fool contributor 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 and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended Humm Group Limited. 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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