While that's disappointing, it is nothing compared to the declines being recorded by the two ASX industrials shares listed below.

Here's why they are being sold off today:

Ashley Services Group Ltd (ASX: ASH)

The Ashley Services share price is down 22% to 27 cents. This morning, the integrated provider of training, recruitment and labour hire released its half-year results and reported a 10.8% increase in revenue to $290.8 million but an 83% decline in net profit after tax to $1 million. The company's profits were hit by impairments relating to the Linc business.

The ASX industrials share's managing director, Ross Shrimpton, was disappointed with the half. He said:

The first half result has been challenging. The outcome of the Linc acquisition is disappointing. As with all acquisitions, there was risk associated with the purchase of Linc. We had 18 months to renew the major customer contract or secure new customers and expand within the higher margin Oil and Gas sector. As of today, the business is ongoing, but with minor contracts in hand. Earnings from Linc in FY24 will be negligible.

The value of acquired customer relationships (originally $2.5 million) have been written off in full throughout FY23 and H1 FY24. Goodwill has also been impaired, with its value reduced to $0.35 million during H1 of FY24.

Silk Logistics Holdings Ltd (ASX: SLH)

The Silk Logistics share price is down 13% to $1.55. This follows the release of the logistics provider's half year results. Silk reported a 9% increase in revenue to $276.5 million but a 22.4% decline in underlying net profit after tax to $7.6 million. Management blamed the profit decline on additional right-of-use (property lease) depreciation expense.

Looking ahead, the company expects revenue of $540 million to $560 million and underlying EBIT of $34 million to $37 million. Though, management warned that trading conditions are tough. It said:

Trading conditions are expected to remain challenging for the remainder of FY24. Silk will focus on preserving profitability through increased operational efficiencies, driving organic growth and integration of acquired businesses to realise synergy benefits. Silk maintains a positive outlook with respect to its business development pipeline and its customer value proposition to win further new business.

The post 2 ASX industrials shares crashing up to 22% on earnings appeared first on The Motley Fool Australia.

It's important to note when buying dividend shares that the purchase must be made prior to the ex-dividend date in order to qualify for the next payment. After this date, the buyer is not eligible to receive the next dividend. Also, bear in mind the practice of dividend harvesting. This is a tactic in which investors will buy shares to get the high yield payment, and then sell immediately as the share goes ex-dividend.

Nonetheless, I am confident these shares will continue to rise over the near term. So if you are willing to hold them for 3 – 6 months, you should also see a small level of share price growth.

One share to buy today for a 6.67% yield

Ashley Services Group Ltd (ASX: ASH) is a human resources consultancy offering training, recruitment and labour hire services. It has multiple brands operating in each vertical, and is also a registered training organisation (RTO). The company published its FY20 annual report on Friday, and correspondingly its share price jumped by 6.5%.

Over the past 5 days, the Ashley share price has risen by 10.9%. Nonetheless, the company is still selling at a price-to-earnings (P/E) ratio of 9.48. From its current report, and prior history, I believe this is a good small cap to own. It continues to increase sales and to build its footprint. In addition, the company has no borrowings and plenty of cash on hand. 

Based on Friday's closing price, this ASX dividend share will yield 6.75%. However, it goes ex-dividend on 1 September, or tomorrow. So if you are going to get this dividend, there is little time to waste.

One ASX dividend yield of 12.5%

This ASX dividend share has only recently come onto my radar. Base Resources Limited (ASX: BSE) is a successful mineral sands company operating in Kenya and Madagascar. It has found an ore body that has a very low strip ratio, that is, a low waste-to-product ratio. Moreover, in the past month, the Base Resources share price has risen by 29.1%. 

The company's net profit after taxes (NPAT) for FY20 was $39.6 million. This was a slight reduction on 2019 due to reducing ore grades where it is producing. Nevertheless, the company intends to produce 700,000 tonnes in FY21, an increase of 50.2%. 

This year will be the company's maiden dividend payment. Based on Friday's closing price, this dividend will yield 12.5%, which is a large payment by any standards. From my investigations, Base Resources appears to be a company that delivers on its promises. As such, I think it's a good investment regardless of the payment. 

The share goes ex-dividend on 18 September. 

A beautiful company to buy before Wednesday!

One look into the financials, website or buildings of Sunland Group Limited (ASX: SDG) and you will see a company obsessed with beauty. The entire company and its products reflect minimalism, with sleek lines, soft angles and the reinforcement of architecture as art. This small cap is valued at $194 million and is a residential property developer with a difference. I have to admit, I find the company's aesthetics highly appealing.

However, Sunland has not had a great year due to coronavirus. It has seen statutory net profits after tax reduce to $2.4 million due to one-off write downs. Nevertheless, gearing is still low at 33%, and the company is set to see a great improvement in FY21. At present, it has a net tangible asset value of $2.56 per share, yet is selling at $1.42. 

If you purchase this ASX dividend share before Wednesday 2 September, then based on Friday's closing price, it will pay a yield of 7.04%. Aside from its dividend, I also believe Sunland Group will be a good company to own over the medium term in general. 

The post 3 ASX dividend shares to buy urgently! appeared first on The Motley Fool Australia.

An HR sector dividend share

The largest dividend opportunity over the next week is Ashley Services Group Ltd (ASX: ASH). The Ashley Services share goes ex-dividend on 1 September, which means you will have to buy it before that date. Ashley Services works in a range of areas in the HR field: provision of training through 3 sub brands, all of which are registered training organisations; recruitment for white collar positions via 2 separate brands; and labour hire services via 2 additional brands. 

The company has not yet posted its full-year report, however its H1FY20 report delivered very strong results. This included an increase in H1 revenues by 23.8% versus the previous corresponding period (pcp). Along with an increase in net profit after tax (NPAT) of 26.8% pcp. 

This ASX dividend share pays a 100% franked dividend of 2.7 cents per share. This is a yield of 7.11% on Monday's closing price. Ashley Services Group has a market capitalisation of $54.71 million.

A dividend share with a turnaround opportunity

AMP Limited (ASX: AMP) hit the headlines on Monday for all the wrong reasons. The embattled financial services company has been dealing with underwhelming performance as well as several high profile cases of alleged sexual harassment. Regardless, this company remains one of the nation's most prestigious wealth brands, despite a decade of poor returns. Moreover, if the right regime is installed, I believe the company can save its reputation and turnaround performance.

The AMP share price rose by 1.05% in Monday's trading. This was after news of the resignation of the chair, a director, and the demotion of the CEO of the AMP Capital subsidiary. Its share price is down by 24.7% in year-to-date trading. The company is unlikely to see the highs of 5 years ago anytime soon. Its recent H1FY20 report was abysmal, recording large falls in assets under management, as well as all revenue streams except banking. 

AMP shares go ex-dividend on 18 September and will pay a 100% franked dividend of 10 cents per share. This will deliver a yield of 6.92% based on Monday's closing price. Buying in today requires faith in the new Chair Debra Hazelton to mend relationships and build an executive team that can turn the ship around.

A consulting industry dividend share

RXP Services Ltd (ASX: RXP) is an interesting IT services company I have been watching for a while now. It has a market capitalisation of $64.4 million and is starting to find its feet in the digital services area, which now makes up ~90% of its revenues. For a small company in the consulting field, it was able to generate $127 million over the year. While this was down by 10% due to coronavirus, it is still impressive for a small company. 

In my analysis of this company I have found that it has a compound average growth rate for total sales of around 24.9% over a 9-year period. In addition, it has been able to grow its cash flow by approximately 51% per year on average, over the same period. This provides it with plenty of cash to grow the business. 

It is currently selling at a price-to-earnings ratio (P/E) of 8, which is below its average 8 year P/E of 9.88. RXP Services goes ex-dividend on 17 September and is paying a 100% franked dividend of 2.5 cents. At Monday's closing price, this is a yield of 6.25%.

Foolish takeaway

These ASX dividend shares are all paying above 6% if you purchase at a price similar to Monday's close, and before the ex-dividend date. However, they are not without risk. The 2 smaller companies are likely to see a fall in share price after the ex-dividend date. Nevertheless, I feel that both of them are steadily growing and should see a level of share price growth over a 6–9 month period. Moreover, you may decide to keep them in your portfolio. 

AMP on the other hand is a matter of personal choice. The company is severely ailing both in terms of culture and performance. I am sure that this is not fatal yet, and it could become a turnaround success story. But time is running out.  

The post 3 ASX dividend shares to buy before it's too late appeared first on The Motley Fool Australia.

Three small cap shares that have caught the eye today with strong gains are listed below. Here's why they are on the rise:

The Ashley Services Group Ltd (ASX: ASH) share price has surged 15% higher to 27 cents after announcing a statutory after tax profit from continuing operations of $4.8 million for FY 2018. This was a major improvement for the labour hire company after posting a loss of $5.4 million a year earlier. A 6% rise in revenue from continuing operations to $332.8 million and significant margin expansion from its Labour Hire division drove the strong result. Earnings per share came in at 3.3 cents, meaning its shares are changing hands at a reasonably cheap 8x earnings despite this strong gain.

The Gazal Corporation Limited (ASX: GZL) share price has climbed 4% to $3.50 after releasing a trading update. According to the release, unaudited first half sales and EBITDA is expected to be $128.5 million and $15.8 million, respectively. This will be an increase of 34.1% and 51.9%, respectively, on the prior corresponding period. The retailer has experienced strong like-for-like sales growth of 12.5% during the period thanks to the continued momentum of its Calvin Klein and Tommy Hilfiger businesses.

The Jumbo Interactive Ltd (ASX: JIN) share price has stormed over 13.5% higher to $5.68 after the lotteries company released its preliminary full-year results. Jumbo reported a 26% increase in total transaction value to $183.1 million, revenue growth of 23% to $39.8 million, and a 55% lift in net profit after tax from continuing operation to $11.8 million. Pleasingly, management reported that it has had a strong start to FY 2019 and believes the business is well placed for growth in the years ahead.

The post These 3 small cap shares are on the rise today appeared first on The Motley Fool Australia.

However, in this article I highlight Academies Australia Group Ltd (ASX: AKG), Redhill Education Ltd (ASX: RDH) and Ashley Services Group Ltd (ASX: ASH) as worthy of investor attention.

Now rebadged as VSL (VET Student Loans), there are signs that things have bottomed in the sector. The move by State government departments, such as Victoria, to hand out only one year contracts is now being reversed.

This is not only due to pressure from providers but also  due to the administrative burden on local departments. The new Victoria tenders are for two years. This will give providers much needed visibility.

The other thing, of course is that although VET-FEE loans shrunk last year to only $1.5 billion, there are far less competitors to share the pie, and those who survived will now have far more rigorous systems in place to take advantage of it.

The demand for vocational training has not gone away, so I see the market quietly growing over the next few years.

So which stocks do I expect to benefit?

Academies Australia Group Ltd swung from a loss of $4m to a profit of $3m in the last year. The current year should see further improvement in revenue and margins. It's worth noting that directors have been substantial buyers.

Redhill Education has already delivered a 158% jump in 2016/17 EBITDA to $3.9m and a return to the dividend list. The Company expects profits in the first half of 2017/8 to be significantly ahead of last year.

Ashley Services Group had a torrid time in its Training Division over the last two years. Luckily it had a substantial Labour Hire business to see it through. Training is now making a small profit, but that will change if its tender in Victoria is successful.

Foolish takeway

As confidence returns to a battered sector, I expect a more predictable future for those players that remain. That is not reflected in the share price ratings of the stocks listed above.

The post 3 bargain small caps to profit from the education sector appeared first on The Motley Fool Australia.

These 5 stocks saw their share prices hammered…

Ashley Services Group Ltd (ASX: ASH) share price plunged 17.1% to $0.31, after the recruitment, training and hire company announced several board changes, a strategic review and a profit forecast downgrade. Ashley now expects net profit after tax before intangible amortisation to be at least 10% below its previous forecast to the market – hence the strategic review and board changes.

Mobile Embrace Ltd (ASX: MBE) saw its share price plummet 15.6% to $0.19 after it reported that it had received a claim against one of its subsidiaries for $4 million for monies allegedly owning from a digital video advertising supply, inventory, services and technology agreement with a third party. The company denies the claim and says it will be 'vigorously defending' it while filing a cross-claim.

Origin Energy Ltd (ASX: ORG) saw its share price drop 8.9% to $5.56 after coming out of a trading halt from a highly discounted capital raising. The oil & gas producer, and wholesale and retail energy supplier is attempting to raise $2.5 billion in new capital to shore up its balance sheet, following ratings agencies' decision to cut the company's credit rating to just above junk status.

Surfstitch Group Ltd (ASX: SRF) share price dropped 7.3% to $1.39 and have now fallen 18% in the past month. The online surf, skate and ski wear retailer may be falling victim to weak Australian sales, although renowned small cap fund manager Pie Funds recently added the company to its portfolio, as we reported last month. Today's price might be an opportunity to buy shares at a cheaper price than Pie.

Panorama Synergy Limited's (ASX: PSY) share price fell 5.4% to $0.17. Shares in the tech company can be highly volatile due to low liquidity. Panorama Synergy is developing a reader which can capture the output from microelectromechanical systems (MEMS). The company has plenty of potential and could be worth multiples of its current price – but that might be in many years' time or not at all. It's currently a high-risk speculative gamble and Foolish readers might want to wait for more results to flow under the bridge before diving in.

The post 5 stocks crunched on the ASX today appeared first on The Motley Fool Australia.

Ashley Services has a very disappointing short history as a listed stock.

The company floated via initial public offering (IPO) just one year ago and since then the stock has lost over 70% of its value.

In some respects, Ashley Services' story has been similar to peer Vocation Ltd (ASX: VET), which touched a high of $3.40 in the past 12 months but whose share price is currently languishing at just 9 cents.

So What: Today's results have gone some way to restoring investor confidence in the company with the group reporting a pro forma revenue of $305.8 million and pro forma net profit after tax, but before amortisation of $13.7 million.

Net cash stood at $12.4 million, pro forma return on equity was 13.3% and a final dividend of 4.1 cents per share (cps) has been declared which takes the full year dividend payout to 6.4 cps.

Now What: Ashley Services' earnings have come in significantly below what was forecast in the group's IPO prospectus. This prospectus could now potentially become the centre of a possible court case with litigation funder IMF Bentham Ltd (ASX: IMF) recently announcing that it is proposing to fund the claims of certain Ashley shareholders against Ashley.

For most investors who purchased shares in the array of recent educational and vocational training IPOs in the hope of achieving returns like those of growth stock Navitas Limited (ASX: NVT) they have so far been disappointed.

Despite the recent past performance across much of this sector, for investors who are comfortable investing in a contrarian manner, this out-of-favour sector could in fact currently be offering significant upside potential in certain instances.

The post Ashley Services Group Ltd leaps 18.3% – Is it a buy? appeared first on The Motley Fool Australia.

While one-day movements aren't usually meaningful, it can pay to keep an eye on them. These five companies had a shocker today…

Otto Energy Limited (ASX: OEL) slumped 41% to 3.6 cents, after reporting disappointing results for its Hawkeye well offshore The Philippines, as we covered previously today. It was bad news for the company, which will now switch focus to its properties in Alaska and Tanzania.

Ashley Services Group Ltd (ASX: ASH) crumbled 11.5% to 50 cents, after IMF Bentham Ltd (ASX: IMF) announced that it was funding a shareholder class action – something we said wouldn't surprise us back in April this year. Ashley Services missed its prospectus forecasts after its training division reported falling enrolments, but perhaps it was the over-optimistic earnings forecasts doing the main damage.

Southern Cross Media Group Ltd (ASX: SXL) dropped 3.7% to 91 cents, despite no news from the company. But it could've been the consumer backlash following a multi-million dollar advertising campaign calling for the removal of the reach rule. Many social media users have questioned the real motives behind the regional TV broadcasters, which want to be able to merge with metropolitan broadcasters.

Transpacific Industries Group Ltd. (ASX: TPI) has dropped 3.7% to $0.66. The recycling and waste management company faces charges of breaching workplace safety laws over a fire in 2013 at the Wingfield chemical waste plant, according to a report by ABC News last month. Transpacific shares are down 40% in the past year, as the company attempt to recover back to where it was prior to the GFC – and a share price north of $10.

OzForex Group Ltd (ASX: OFX) has dropped 3.7% to $2.64 – again despite no news from the company. Perhaps it was short term traders following the lead of FIL Investment Management, which recently sold down its position from 10% to 8.3%. Or perhaps it was just traders taking some profits after Friday's bounce. The currency exchange company inked a deal with accounting firm Xero on Friday and shares jumped higher.

The post 5 stocks slammed on the ASX today appeared first on The Motley Fool Australia.