ASX 200 rises, Altium sinks, Fortescue climbs

Fortescue shares helped the ASX 200 rise today.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.2% to 7,505 points.

Here are some of the highlights from the ASX:

Altium Limited (ASX: ALU)

The Altium share price dropped more than 14% today after delivering its FY21 result.

The ASX 200 share, which specialises in electronic PCB software, said it wasn’t able to release its audited accounts because of an audit delay which had been amplified by COVID-19 in NSW. It expects to release its audited result within a week. It’s not expecting there to be any material difference between the two sets of financial statements.

Altium said that it delivered revenue growth of 16% in the second half of FY21 to achieve full year guidance of US$191.1 million for FY21.

Recurring revenue now accounts for 65% of total revenue, up from 59% from a year ago. There was “strong” growth in term-based licenses, which management described as a positive for future recurring revenue.

Annual recurring revenue (ARR) revenue grew by 29%. Management pointed to strong adoption of Altium 365 during the year with almost 13,000 monthly active users and over 6,000 monthly active accounts. Altium’s total subscription base grew 7% to 54,394.

The Octopart division generated 42% revenue growth to US$27 million. China saw second half growth of 47%, to deliver double digit growth for the full year.

Altium’s board declared a final dividend of AU$0.21 per share, bringing the total for the year to AU$0.40 – an increase of 3%.

In FY22, Altium is expecting revenue to grow by a range of 16% to 20%, to a range of US$209 million to US$217 million. ARR growth is expected to be between 23% to 27%. Altium’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be between 34% to 36%.

Altium was the worst performer in the ASX 200.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price went up more than 6% after the company released its FY21 result.

Fortescue reported that its revenue increased by 74% to US$22.3 billion. This helped increase the net profit after tax by 117% to US$10.3 billion.

The iron ore miner’s board decided to grow its total FY21 dividend by 103% to $3.58 per share. Fortescue’s final dividend was increased by 111% to $2.11 per share.

Fortescue ended the period with net cash of US$2.7 billion, after the ASX 200 miner generated almost US$9 billion of free cashflow over FY21.

The ASX 200 business allocated US$1 billion to Fortescue Future Industries in FY21, which is the miner’s green initiative business. FFI spent US$122 million in FY21. In FY22, FFI is expected to spend between US$400 million to US$600 million, with key activity areas being green fleet development and decarbonisation technologies.

Fortescue is expecting to shop 180 mt to 185 mt of iron ore shipments. C1 costs are also expected to increase to a range of between US$15 per wet metric tonne to US$15.50 per wet metric tonne.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price jumped 11% after the business released its audited financial statements and another trading update.

It told the market that there had been no changes to the FY21 result it released last month. Full year revenue increased by 85% to $326.3 million and underlying net profit after tax (NPAT) increased 165% to $14 million.

In the FY22 update, it said that the current financial year had started strongly with year on year revenue growth of 49% for the period of 1 July 2021 to 27 August 2021.

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Motley Fool contributor Tristan Harrison owns shares of Altium and Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended Temple & Webster Group 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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