The Beacon Lighting Group Ltd (ASX: BLX) share price closed 2.3% lower to $1.27 today.

This came after Beacon this morning announced its interim results for the six months ending 23 December 2018, achieving modest sales and profit growth.

A summary of the financial results is provided below:

• Sales growth of 4.8% pcp
• High gross profit margins maintained at 64.9%
• EBITDA growth of 5.4% pcp
• NPAT growth of 3.2% pcp

Outlook

The company's first-half results took a hit from a slump in demand caused by the housing downturn. The company stated that trading conditions are "unpredictable", downgrading its profit guidance for the second half of the financial year. The company now expects FY19 profits to be in line with FY18, having previously anticipated "record sales and profits in FY19".

Beacon also declared a fully franked interim dividend of 2.55 cents per share, up 0.05 cents from the previous corresponding period. The company provided guidance for an annual payout ratio in the range of 50% – 60% of NPAT.

The Beacon Lighting share price has fallen over 23% in the last 12 months, compared to the S&P/ASX 200 index which has risen 2.78% in the period.

The post The Beacon Lighting share price fell on a profit downgrade today appeared first on The Motley Fool Australia.

More reading

• An ASX small-cap share to buy for its bright future
• Beacon Lighting Group share price jumps 14%: FY26 profit drops despite higher sales

The IOOF Holdings Limited (ASX: IFL) share price skyrocketed today, closing 16.42% higher at $6.17. This comes after the company posted a solid set of interim results despite a bruised reputation after the financial services provider was slammed by the Royal Commission.

IOOF achieved a 200% increase in statutory net profit after tax (NPAT) driven by one-off items including a $34 million profit from the sale of the company's corporate trust business.

The numbers were also solid on an underlying basis, with 6% growth in underlying NPAT. Acting CEO, Renato Mota said that the result was a reflection of the strength of the company's diversified business model. The acquisition of ANZ Wealth Management also benefited the result.

The company acknowledged that trust needed to be rebuilt and changes made that will lead to better outcomes for clients. "IOOF is fully supportive of Royal Commission recommendations that will lead to a better, stronger financial services industry for the benefit of all Australians," Mr Mota said.

IOOF hasn't yet felt the full impact of the Royal Commission. The company signaled additional compliance and regulatory costs in the range of $20 – $30 million which will be incurred commencing immediately and into FY20.

The post IOOF share price surges on unexpectedly solid results appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

Earthmoving equipment hire company Emeco Holdings Limited (ASX: EHL) has seen its share price crash on the release of its interim results as the company showed weaker-than-expected growth. The Emeco share price is currently down 20.3% to $2.24.

Statutory net profit after tax came in at $11.9 million, up from a net loss of $0.3 million in the previous corresponding period. Still, investors had expected more, with brokers having forecast net profit for the full 2019 fiscal year in the vicinity of $70 million, which seems like a long shot after today's results.

A brief summary of the company's results is provided below.

• $102.8m operating EBITDA, up 53.4% pcp
• Operating EBITDA margin 45.8% vs 39.2% pcp
• Operating utilisation 64% vs 57% pcp
• Leverage reduced to 2.1x vs 2.6x last period

Much of the company's growth came from two acquisitions, which helped drive a 159.8% increase in operating (non-statutory) NPAT. The results also benefited from increased operating utilisation and strong customer demand.

Margin expansion was driven by the contribution of high-margin earnings from an acquired company, new customer contracts and disciplined cost management.

"The outlook for the remainder of FY19 is positive. We expect strong market conditions to continue into 2H19, particularly in the Eastern Region, with increased bidding activity  in the Western Region for new projects expected to come online during 2019," said Managing Director Ian Testrow.

The post Why the Emeco Holdings share price crashed 20% on its profit report appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

Engineering group Monadelphous Group Limited (ASX: MND) has announced its interim results, meeting revenue guidance and signalling a positive outlook for the remainder of the fiscal year.

The group met revenue guidance of $830.5 million, which represents a 5% decrease on the previous corresponding period. This decrease was primarily due to a fall in construction revenues as a result of the completion of a major project in the prior period and the timing of new project opportunities.

Maintenance revenues saw a significant increase and there was a growing contribution from infrastructure markets with an increase in new contracts won. The group also saw increased offshore oil and gas contracts activity and growing demand in the resources sector.

Net profit after tax of $30.7 million was 18.3% lower than the previous corresponding period as a result of lower revenues, increased depreciation and a reduction in interest income.

"Overall, the long-term outlook for Monadelphous remains positive as operating conditions continue to strengthen and the pipeline of resources construction opportunities gains in number," said Managing Director Rob Velletri in a statement.

Strengthening conditions in the resource and energy sectors were highlighted, with infrastructure investment said to be at a "healthy" level.

The company stated that it is in a favourable position to secure new work on major projects going forward, which it expects will "generate significant revenue in 2019/20 and beyond".

The company announced a 25 cents per share fully franked dividend to be paid on the 29 March.

The post Why the Monadelphous share price is up 3% after meeting guidance appeared first on The Motley Fool Australia.

More reading

• 2 top ASX 200 shares tipped to return 23% to 45%
• Why these ASX shares are worth watching closely today
• 37 ASX shares going ex-dividend next week
• Monadelphous posts record FY26 profit and dividend, buoyed by growth
• 5 things to watch on the ASX 200 on Tuesday

The GWA Group Ltd (ASX: GWA) share price is up 5.47% after it announced a solid set of results for the first half of the 2019 fiscal year, showing continued top line growth while maintaining profitability. The company declared a fully franked interim dividend of 9 cents per share, up 6% on the previous corresponding period.

GWA manufactures and distributes building fixtures and fittings to households and commercial premises.

A brief summary of the group results is provided below:

• 2.6% revenue growth pcp
• A 7.3% increase in underlying net profit after tax, driven by higher EBIT and lower interest expense due to lower debt
• EBIT margin maintained at 24.9%.
• Operating cashflow up 31.6% driven by more efficient working capital management, helped by a new distribution centre in NSW

Revenue growth in spite of somewhat challenging market conditions saw the group gain market share over the period. A decline in residential construction activity dragged on GWA's detached house completions and medium to high-density dwelling completions, which together make up a third of group revenues.

GWA foresees similar market conditions in the second half of FY19, with second-half group EBIT expected to be in line with the first half.

The group also stated that its proposed acquisition of shower and tapware manufacturer Methven Limited (NZE: MVN) is expected to complete by mid-April, subject to regulatory and shareholder approvals.

The post GWA share price jumps on 7% bottom line growth appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

One of Australia's largest fund managers has managed to beat the market over the second half of the 2018 calendar year, but only just.

Perpetual Equity Investment Company Ltd (ASX: PIC) posted its interim results this morning, announcing that its investment portfolio delivered a return of -6.5% over the period, outperforming the benchmark by 0.5%. A fully franked dividend of 3.1 cents per share was also announced, which represents a 3% increase on the previous corresponding period. The Perpetual share price is up 0.5% this morning.

The second half of 2018 was a tough period for Australian equities as global growth concerns and macro risks came to the forefront, sparking a sell-off.

"The Board recognises our shareholders value a sustainable dividend stream and is pleased to announce an increased interim dividend for the first half of the year. During a time of market volatility and overall market weakness, we have achieved this for our investors through prudent management of the Company," said Chairman Nancy Fox in a statement.

The company recorded an operating loss after tax of $16.2 million for the period as a result of unrealised losses attributed to unfavourable market conditions. Perpetual noted that market conditions have since seen an upturn in the second half of the fiscal year.

A value investor's market?

Perpetual Portfolio Manager, Vince Pezzullo said: "The ongoing market volatility has been challenging for the industry and created some uncertainty. We believe value investing will return to favour as market conditions continue to change."

"We continue to focus on strategically managing our portfolio and our disciplined investment approach to deliver sustainable income for our investors over the long run."

The post Interim results: Did Perpetual Investments outperform the market? appeared first on The Motley Fool Australia.

More reading

• Perpetual Equity Investment Company delivers FY26 profit and steady dividend

It was a positive end to the week on the Australian share market, with the S&P/ASX 200 index closing 0.11% or 6.7 points higher at 6066.1. The broader All Ordinaries index also closed higher, up 0.15% or 9 points at 6148.6.

These 3 ASX real estate shares also closed higher:

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is enjoying a huge relief rally on the back of a 'solid' set of half-year results, with shares closing 21% higher at $2.53. Domain hit a record low of $2.06 earlier this month as weakness in the key Melbourne and Sydney property markets hurt investor sentiment.

Domain reported flat revenue of $186 million and a net loss after tax of $156.4 million, which included a non-cash goodwill impairment of $178 million.

"In the context of current property market cyclicality, Domain delivered a strong performance in the half, with growth in average revenue per listing," Domain CEO Jason Pellegrino said.

"Today's results are testament to Domain's strong fundamentals and competitive strength as a leading Australian property technology and services business."

Goodman Group (ASX: GMG)

The Goodman Group share price closed 2.6% higher today at $12.84 as the global industrial property group shows momentum on the back of yesterday's well-received half-year results.

The group posted an operating profit of $465 million for 1H19, up 10.4% on the previous corresponding period. This strong first-half performance led to management upwardly revising its full-year EPS guidance to 51.1 cents.

Goodman Group is a global industrial property group which owns, develops and manages industrial real estate. The Group aims to invest and develop in quality assets located in major urban centres.

REA Group Limited (ASX: REA)

The REA Group share price lifted 2.66% to $78.02 today. Alongside its rival Domain, REA bounced back after the company's warned of a negative outlook alongside the release of its half-year results last Friday.

In its interim results, the online advertising company posted 15% revenue growth and a 20% increase in net profit from core operations. These results were achieved in spite of "challenging" market conditions which caused lower volumes of listings and fewer new dwelling announcements.

REA warned that market conditions are not expected to improve in the short term and that revenue growth is expected to be lower in the second half of the fiscal year.

The post 3 ASX real estate share prices that moved higher today appeared first on The Motley Fool Australia.

More reading

• How to make $26,000 of passive income from ASX shares
• With no savings at 50, I'd follow Warren Buffett's approach to build wealth
• 9 ASX 200 shares earning strengthened buy ratings this week
• You don't need to own Nvidia to invest in AI – Here are the best Aussie artificial intelligence shares
• Why I think these are the best ASX shares to buy and hold

The Link Administration Holdings Ltd (ASX: LNK) share price has fallen 2.9% on the release of the company's interim FY19 results. While statutory results were strong, investors found the performance of the underlying business insufficient to assuage concerns about the company's uncertain outlook.

Financial results summary

• Revenue by segment:
  • Fund Administration $275.9M vs $284.3M pcp
  • Corporate Markets $116.5M vs $103.4M pcp
  • T&I $130.2M vs $116.6M pcp
  • Link Asset Services $309.3M vs $105.5M pcp (reflecting the inclusion of a full period of results from Link Asset Services)
• Operating EBITDA of $185.4 million, up 25% pcp
• Operating NPATA of $107.8 million, up 17% pcp

Link provides outsourced administration services for financial ownership data, operating in the following segments: Fund Administration; Corporate Markets; Technology and Innovation; and Link Asset Services.

The company posted revenue growth of 42% and an 187% increase in statutory net profit after tax (NPAT) on the previous corresponding period. These results were driven largely by the acquisition of Capita Asset Services (now named Link Asset Services) in late 2017 and a one-time benefit from the revaluation of the company's interest in Property Exchange Australia (PEXA).

Link's fund administration business, historically the company's core operating segment, saw a 3% contraction in revenue, largely due to the challenge posed by a changing regulatory environment in the superannuation industry (which Link Group services).

The segment has felt the impact of regulatory action stemming from the "Protecting Your Superannuation Package", the Royal Commission and the Productivity Commission, with further regulatory action likely in the future.

Most notable of these changes came in May 2018 with the proposal of legislation change regarding the treatment of inactive superannuation accounts. Link Group is set to see the number of members it administers decrease materially as inactive accounts are moved to the ATO to protect account holders from unnecessary fees and charges.

The Link Administration share price is down 19.4% from a year ago.

The post Link Administration share price falls as superannuation regulation bites appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

The Stanmore Coal Limited (ASX: SMR) share price closed 2.3% higher today with the release of the company's half-year results for the period ending 31 December 2018.

The Stanmore share price now sits at $1.10, decidedly higher than the $0.95 per share offer made by Golden Investments which expired on the 23 January.

Financial performance

The company showed record financial performance for the half year, attributable to "strong coking coal prices, increased volumes, improved sales mix between coking coal and thermal coal and a continued focus on cost control".

Underlying EBITDA of $41.6 million was in line with guidance and puts Stanmore on track to meet FY19 underlying EBITDA in the range of $140–$155 million.

A summary of Stanmore's other financial results for the half year ending 31 December 2018 is provided below:

• Profit after tax of $21.3 million (165% growth on the previous corresponding period)
• Revenue of $148.3 million (79% growth pcp)
• Gross margin of 48.1% (33.7% in pcp)
• Interim fully-franked dividend of 3 cents per share

Operating performance

• The company is on track to meet full-year coal production guidance of 2.15mt, representing a 90% increase on FY18.
• Record coal production of 978kt (91% growth pcp)
• Reduction in waste removal costs due to the relocation of operations to the new Isaac Plains East Mine, which has a more favourable strip ratio

The Stanmore Coal share price has climbed 73% higher over the last 12 months, compared to the S&P/ASX 200 index which has risen 4.4%.

The post Stanmore Coal share price lifts 2.3% on strong half year results appeared first on The Motley Fool Australia.

More reading

• Stanmore Resources to acquire Moranbah South, boosting coal resources
• Stanmore Resources posts higher revenue and steady production in 1H FY26

The European Commission has conditionally approved the proposed $9 billion merger between global packaging giants Amcor Limited (ASX: AMC) and Bemis Company, Inc (NYSE: BMS). In order to appease the EC's competition concerns, Amcor will be required to divest Bemis' entire European medical packaging business.

The EC had raised concerns about the combination of the companies' medical packaging operations, given that Amcor and Bemis are the biggest medical packaging players in the European Economic Area and have been close competitors. The combined entity would have been three times larger than the next largest medical packaging competitor.

To resolve these concerns, the merged entity will be required to divest Bemis' three healthcare packaging plants in Europe. These plants generate combined annual revenue of approximately USD $170 million. Amcor pointed out that its own "substantially larger" European healthcare packaging business will be retained, allowing continued access to "attractive, high-value end markets".

The announcement represents progress towards Amcor's acquisition of its smaller rival through an all-stock deal. Amcor will issue 5.1 of its shares as consideration for each Bemis share, which implied a 25% takeover premium at the time of the deal announcement in August.

Regulatory approval is still required in the United States and Brazil. Amcor says that it is in "advanced discussions" with the relevant regulators, and signaled that further potential divestments may be required for antitrust approval.

"Inclusive of remedies required by the European Commission, collective potential remedies would represent an immaterial proportion of the total sales for the combined company and would not impact the USD $180 million of net cost synergies expected to be delivered by the end of the third year following completion," the company said in its announcement.

The Amcor share price is 0.5% higher today to $14.62, and 10.2% higher YTD.

The post Amcor share price edges higher as European Commission grants approval for Bemis merger appeared first on The Motley Fool Australia.

More reading

• How much superannuation is needed to target $5,500 per month in passive income?
• How much do I need in my superannuation to earn $10,000 passive income every month?
• Own BHP, Woodside or Coles shares? Here's what investors should know
• 5 things to watch on the ASX 200 on Thursday
• How much superannuation do I need to earn $90,000 per year in passive income?

The Blue Sky Alternative Investments Ltd (ASX: BLA) share price is up 14.7% this morning after providing guidance for its first-half FY19 results, which are set to be released on 27 February. After months of perdition, today's market update has clearly improved investor sentiment as the fund manager continues to attempt to find its feet.

Management expects an underlying loss before tax in the range of $28 million to $32 million, with earnings being dragged down by balance sheet write-downs, restructuring costs, and reimbursements.

The embattled alternative investment asset manager has seen its share price drop from a 52-week high of $14.35 to its current price of $0.68 after US hedge fund Glaucus released a report in March outlining its short thesis on Blue Sky.

Glaucus claimed that Blue Sky vastly overstated its assets under management and misrepresented the performance of its investments while charging investors extortionate fees.

Glaucus had caught a whiff of something rotten, and it turned out to be right. Blue Sky executives dropped like flies as the extent of deception became evident. Huge write-downs wiped away earnings and the company began a comprehensive restructure.

Questions of distress arose as Blue Sky's cash looked to be drying up fast, but distressed-debt fund Oaktree Capital Management came to the rescue with a $50 million leg-up loan.

Today's announcement showed that, including the $50 million draw-down, end of period cash stood at $54.8 million. Blue Sky said: "The primary drivers of the cash position relate to abnormal expenses, restructuring expenses, fund expense recovery payments and further working capital loans, investments and co-investments of alignment capital with institutional investors in real assets and a US energy storage investment."

End of period Net Tangible Assets (NTA) is expected to be in the range of $102–106 million, including a $22 million impact from the adoption of new accounting standards.

Blue Sky exited its hedge fund business and terminated its retirement living real estate development projects. Significant cost-cutting efforts have seen headcount reductions across all remaining divisions. The company is continuing to work towards improving its investment operations, governance and risk structures.

The post Are the clouds clearing for the Blue Sky share price? appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

The Megaport Ltd (ASX: MP1) share price has jumped 3.34% higher to $3.86 this morning after announcing its results for the first half of the 2019 financial year.

The network and cloud services provider continues to show solid growth with an increase in reported revenue of 72% on the previous corresponding period.

Megaport provides "elastic interconnection services". Essentially, it provides "Network as a Service", allowing its clients to connect to cloud-based software on an on-demand basis. The fast-growing company is the leading global player of elastic interconnection services but is yet to turn a profit.

A summary of financial and operating highlights for the period is provided below:

• Increased reported revenue by 72% and Monthly Recurring Revenue (MRR) by 70%
• Net loss for the period was $16.6 million
• End of period cash balance of $38.1 million
• Total services increased by 33% on the prior period and Average Revenue per Port grew 13%

Chief Executive Officer, Vincent English said: "Megaport had a solid performance during the first half of the Fiscal Year 2019. During the period, we made significant investments in our sales and go-to-market engine while continuing to expand our footprint to new data centres and integrating with more cloud on-ramps."

"Megaport is well-positioned to capture the opportunity driven by the ever-growing demand for cloud connectivity."

The post Megaport share price jumps after posting 72% revenue growth appeared first on The Motley Fool Australia.

More reading

• Nextdc vs Megaport: Which ASX tech growth share comes out on top?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Megaport shares have surged 10% in a week to $18. I think they could hit $25
• You don't need to own Nvidia to invest in AI – Here are the best Aussie artificial intelligence shares

The Australian Agricultural Company Ltd (ASX: AAC) share price plummeted 12% today, down to a 15-year low, after the beef producer announced that the Queensland floods have taken a heavy toll on the company's livestock and infrastructure.

While an accurate assessment of the damage is not yet possible due to persistent flood waters, the impact on the company's FY2019 results is expected to be significant. The once-in-a-century deluge has seen four of AACo's 21 properties severely affected.

The Wondoola station, located 700km west of Cairns, has been hit the worst. Its herd of 30,000 head of cattle is expected to suffer "extreme" losses.

In a statement, the company said: "Our immediate focus is on our people, the welfare of our animals and the tight knit communities in which we operate. The full effects of the flood are being managed and measured in real time."

On the opposite end of the spectrum, below-average rainfall and extreme heat are affecting many of AACo's other properties located in south-western Queensland and the Northern Territory. As previously signaled, these conditions will substantially increase operating expenses, affecting profitability.

More positively, the company said: "The current operating conditions are not expected to affect the company's ability to fulfil supply obligations or the rollout of its branded beef strategy, which continues to be a key focus. While we are still assessing the impact of this tragic situation, our balance sheet and financial position remains strong."

Today's decline saw the AACo share price down more than 15% so far in 2019.

The post Queensland floods take the AACo share price to 15-year low appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

Residential property developer AVJennings Ltd's (ASX: AVJ) share price fell 3.54% today after posting an egregious set of interim results. Compared to the previous corresponding period, the company saw its revenue decline 39% and net profit after tax shrink 91%.

The market had been expecting a negative result given the weakness in Australia's housing market and prior warning that fiscal year 2019 earnings would be skewed towards the second half. The company's share price has been on a steady decline over the past six months.

AVJennings noted that consumer confidence has suffered in the face of political uncertainty, 'sensationalist' media commentary regarding Australia's housing market and a credit squeeze by the banks.

Managing Director and CEO, Peter Summers pointed to the Banking Royal Commission as having played a role in the tightening of lending conditions. Last Friday, the Reserve Bank of Australia denied that tougher lending policies were responsible for a credit crunch that was fueling the decline in house prices.

The company is optimistic, however, that currently, soft market conditions aren't here to stay, pointing to positive economic conditions, solid market fundamentals and the reduced likelihood of a rate hike in 2019. Additionally, the company predicts that stronger wage growth and inflation, positive net migration into capital cities and improving affordability will be tailwinds for housing demand.

The statement also mentioned loosening of lending conditions as a potential upside: "Importantly, the banking regulator APRA has acknowledged that some of the curbs imposed upon bank lending over the past few years have done their job and must be reconsidered to avoid unintended consequences, particularly as new construction activity diminishes, and developers pare back supply."

Today's declines saw the AVJennings share price down almost 25% over the last 12 months.

The post Housing malaise sees AVJennings' share price drop as profits suffer appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

Motley Fool contributor Cale Kalinowski has no position in any of the stocks mentioned. 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.

The Sigma Healthcare Ltd (ASX: SIG) share price has jumped 5.36% higher on Monday afternoon after the company provided a market update, announcing that it has found room for over $100m per annum in cost savings.

The announcement follows the completion of a four-month business review which has identified cost efficiencies of over $100m per annum to be realised over the next 18–24 months.

The company also confirmed its FY19 underlying EBIT guidance in the vicinity of $75m, while stating that it expects FY20 underlying EBITDA in the range of $55 – $60 million.

Contingent on the successful implementation of its cost reduction program, the company has signalled underlying EBITDA growth for FY21–FY23 in excess of 10% per annum.

Sigma Healthcare Ltd manufactures and distributes pharmaceutical products, operating through the Amcal, Guardian, PharmaSave, Chemist King, and Discount Drug Stores retail brands.

In December 2018, Australian Pharmaceutical Industries Ltd (ASX: API) announced that it had picked up a 12.95% stake in the company and approached the Sigma Board with a merger proposal. API and Sigma have since been conducting reciprocal due diligence.

Sigma Chairman, Brian Jamieson said: "We are open to continuing discussions on identifying potential merger opportunities, but this needs to be assessed in the context of what is in the best interests of Sigma shareholders."

"Importantly, independent of API's proposal, we have a clear vision of where we are heading as a standalone business and are committed to implementing the transformational program to capture the benefits for our shareholders."

With a market capitalisation of around $625 million, the Sigma share price currently trades on a P/E ratio of 11.3.

The post Sigma share price jumps 5% after announcing cost reductions appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

The DWS Ltd (ASX: DWS) share price dropped 3.3% this morning after the company announced its interim results for the first half of the 2019 financial year.

DWS provides IT services to large corporate entities and government agencies. It offers products and services including systems development, application-managed services, business process automation, and business analytics.

Although the company saw a 33% increase in revenue on the prior corresponding period, underlying EBITDA was down 13% and the net profit after tax was 34% lower.

The revenue result was bolstered significantly by the acquisition of Projects Assured, a management consultancy firm based in Canberra. Headwinds included lower than expected demand in some sectors, as well as acquisition costs relating to Projects Assured.

The Board has declared a 4.0 cent fully-franked interim dividend, down from the 5.0 cent interim dividend in the previous corresponding period.

CEO and Managing Director of DWS Limited, Danny Wallis said: "DWS was impacted by variable and lower than expected demand in the Banking & Finance sector and lower than expected demand in the IT&C and Utilities sectors which led to lower staff utilisation. In response, we have continued to invest in licensed products and Robotic Process Automation as well as supporting Projects Assured in their growth."

Over the last 12 months, the DWS share price has fallen by over 25% lower, compared to a gain of 3.5% for the S&P/ASX 200 index.

The post Why the DWS share price fell 3.3% lower this morning appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

The Cooper Energy Ltd. (ASX: COE) share price is down 3.0% to $0.48 in early trade on Monday.

This comes after the Oil and gas company this morning announced its interim results for the half year ending 31 December 2018, posting a statutory loss of $12.6 million despite solid profit growth on an underlying basis.

The statutory loss was largely due to a $16.5 million non-cash expense from a reassessment of a provision for the restoration of the Patricia Baleen gas field.

The company's performance looked better on an underlying basis, which was largely attributable to higher oil and gas prices. Underlying profit after tax of $3.1 million was 41% higher than the $2.2 million for the previous corresponding period.

Highlights from the results are provided below:

• Underlying profit up 41%, driven largely by a 32% increase in gas sales revenue
• Higher oil and gas prices led to a 16% growth in total sales revenue despite a 15% decrease in production
• Underlying EBITDA improved 6% to $13.8 million

In a statement, Managing Director David Maxwell pointed to the emerging value of the gas business as well as the execution of the Sole Gas Project, which is 86% complete and within budget.

Cooper Energy said that production for the second half of the fiscal year is expected to be greater than that of the first half, largely due to higher production from the Casino Henry gas project.

The Cooper Energy share price has climbed over 51% higher in the last 12 months, compared to the S&P/ASX 200 index which has risen 3.67% in the period.

The post The Cooper Energy share price is down 3% on interim results appeared first on The Motley Fool Australia.

More reading

• 2 ASX energy companies Macquarie says can jump more than 37%
• Macquarie tips this ASX gas company to jump more than 50%

The S&P/ASX 200 Index rose 3.6% or 208.7 points this week in its biggest weekly gain in more than two years. Here are some of the biggest movers which helped shape this week in equity markets.

Beach Energy (ASX: BPT)

The Beach Energy share price plummeted 9.7% on Friday to close at $1.64 on the back of a slide in the oil price. While Beach Energy was by far the worst hit, it wasn't alone; the Santos Ltd (ASX: STO) share price fell 4.4%, while Oil Search Limited (ASX: OSH) share price closed 3.5% down and the broader S&P/ASX 200 Energy sector fell 2.6%.

The oil price was weighed by renewed trade angst and fears of a global slowdown spurred by comments from White House economic adviser Larry Kudlow. He said that while Trump remained optimistic on a deal being struck, there was still a "pretty sizeable distance" from that being achieved. The March 1 deadline is fast approaching, with the threat of new tariffs being implemented on March 2.

The Big Four Banks

The real reason for the strong performance in the ASX this week lies in the huge gains from the Big Four banks after they faced an overall better-than-expected outcome from the Royal Commission.

• Westpac Banking Corp (ASX: WBC) gained 8.99%
• Australia and New Zealand Banking Group (ASX: ANZ) finished the week up 7.86%
• Commonwealth Bank of Australia (ASX: CBA) lifted 7.15%
• National Australia Bank Ltd. (ASX: NAB) gained 4.04%

James Hardie Industries plc (ASX: JHX)

Industrial building material company James Hardie finished the week with an even bigger gain than any of the banks. The James Hardie share price finished the week 9.25% higher after posting positive quarterly earnings, improving investor sentiment around the stock. Like many others, James Hardie suffered from a broader construction malaise in 2018, with its share price still 32% down from its 52-week high.

The post Big movers on the ASX 200 this week appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• 3 ASX shares I'd buy for income and growth in retirement
• James Hardie says it doesn't need a US housing recovery. Can it prove it?
•  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27?
• Here are the top 10 ASX 200 shares today

Nickel Mines Limited (ASX: NIC) is a little-known nickel producer which floated on the ASX in August of last year. Nickel Mines has seen its share price rise over 50% in the past month coinciding with the announcement of first production at the company's new furnaces and a rally in the price of nickel.

Below is a summary of the Nickel Mines situation.

• The company owns an 80% economic interest in the Hengjaya Nickel Mine located in Indonesia.
• The company is focused on producing nickel pig iron, which is used in the production of stainless steel.
• Nickel Mines has collaborated with Tsingshan, the world's largest stainless steel producer, to construct a Rotary Kiln Electric Furnace (RKEF) plant. This plant has developed as an expansion of an existing production facility owned by Tsingshan, the Indonesian Morowali Industrial Park (IMIP).
• Nickel Mines holds a 60% interest in the RKEF plant which is currently in the latter stages of development, with full-scale production set for later this year.

There are several reasons why I think Nickel Mines is strongly positioned for the future.

Low operating costs

Nickel Mine's production costs for nickel pig iron are expected to be in the first cost quartile of global nickel pig iron producers.

Firstly, the RKEF plant's integration with Tsingshan's existing production facilities allows for reduced electricity costs, stemming from Tsingshan's purpose-built power plant which offers cheaply priced electricity.

Secondly, the use of RKEF electric furnaces in the nickel production process results in lower average production costs.

And lastly, the vertically integrated nature of the Hengjaya Nickel Mine and RKEF furnace allows for cheap nickel sourcing. Indonesian Government bans on the export of raw materials prevent cheap nickel from being exported elsewhere.

Low capital intensity

The RKEF plant is an extension of Tsingshan's existing facilities, which has the consequence of significantly reducing capital intensity. Through this collaboration, Nickel Mines is saving on capital expenditure that would typically be spent on supporting infrastructure and site preparation.

Nickel price tailwinds

Nickel prices have been on the rise lately, gaining 15% in the past month. Additionally, resolution in US-Sino trade relations would likely fuel further increase in the price of nickel, provided that the Chinese or global economy doesn't experience an unexpected slowdown.

Innovations in battery technology have been predicted to be long-term drivers of the nickel price in the future, with nickel metal hydride batteries having applications in electric vehicles.

The post This little-known ASX small cap is on fire appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares

Advanced manufacturing company Titomic Ltd (ASX: TTT) announced this morning that it has gained exclusive rights to two patents related to the production of pipe and pipe components, which it says will open the door to significant revenue opportunities. The Titomic share price is up 4.8% this morning to $2.19.

The patents, exclusively licensed with CSIRO, will grant Titomic more than eight years of innovative additive manufacturing techniques, background IP and kn0w-how for the production of pipe and continuous pipes.`

Titomic specialises in additive manufacturing (metal 3D printing) using its Titomic Kinetic Fusion (TKF) process, which allows for the manufacture of industrial-scale titanium parts for various industries, purportedly in a faster and more cost-efficient manner than with traditional techniques.

Titanium's corrosion resistance and strength-to-density ratio is the highest of any metallic element, making it a highly attractive material for many applications.

The patents announced today set the stage for Titomic to efficiently manufacture high quality pipe without the typical constraints of traditional techniques. Titomic says that pipe produced using its TKF process has superior wear and corrosion resistance properties which make it applicable to industries such as Oil and Gas, Marine, Defence, and Mining.

Titomic Managing Director, Jeff Lang said: "To capitalise on the significant $300+ billion global interest Titomic has received from the Oil & Gas, Mining and Marine industries to provide more sustainable and cost-effective additive manfucaturing, these new TKF technologies enable Titomic to provide viable digital manufacturing capabilities leading to significant short, mid and long-term revenue opportunities."

Titomic listed in mid-2017 at $0.20 per share and has since seen its share price gain 985%.

The post Why the Titomic share price is up 5% after securing patents appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares boosted by brokers this week
• South32 shares fall 10% from all-time high: Is the rally over?
• Why Macquarie's $321 million Shield problem is back in court
• ASX shares investors are still buying despite volatility: survey
• Buy, hold, sell: Aurizon, Car Group, Guzman y Gomez shares