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On 30 July 2019, the Australian benchmark index, S&P/ASX 200 was at 6850.7, up by 24.9 points or 0.4% (at AEST 12:08 PM). Letâs discuss the respective updates released by these four stocks on 29 July 2019:
Healius Limited (ASX: HLS)
On 29 July 2019, Healius Limited informed the market with a release related to organisational and management updates. Accordingly, it was asserted that HLS is undertaking an organisational re-design to simplify the management structure of the company. Besides, the rationale of the move extends to improve the divisional agility, autonomy while propelling efficient group functions to support the growth strategies reported during the last yearâs capital raising.
Companyâs Network (Source: Companyâs Half-Year Presentation, February 2019)
Executive Exits: It was notified that Malcolm Ashcroft, Chief Financial Officer, would be departing the company post completion of the FY 2019 financial results. Besides, Wes Lawrence would be leaving the organisation after serving twenty-five years, and lately, he served as the CEO of Pathology section. Admittedly, the company is actively looking for a successor, and the announcement is expected shortly on it.
On 30 July 2019, HLSâ stock was trading at A$2.94, up by 0.685% (at AEST 12:01 PM).
Village Roadshow Limited (ASX: VRL)
On 29 July 2019, Village Roadshow released an announcement related to iPic Entertainment Inc (NASDAQ:IPIC), in which the company holds a 24.4% ownership interest. Accordingly, IPIC has announced the market that it missed a planned interest payment on its credit facility, which could lead to an event of default being declared under the credit facility.
FY2020 Event Calendar (Source: Companyâs Strategy Presentation, June 2019)
Also, IPIC has appointed advisors to evaluate the capital & liquidity structure of the company. Besides, it has been said that the possibility of restructuring or filing of bankruptcy could be on the cards consistent with Chapter 11 of U.S. Bankruptcy Code.
Reportedly, the investment in iPic has been carried on at nil on the accounts of VRL; however, VRL has a contingent liability of US$5.6 million pertaining to iPic, which has been previously reported in VRLâs accounts. Besides, VRL anticipates that it might incur a payment of US$5.6 million (~A$8 million), which would eliminate the liability. Further, the payment to iPic would not have any material impact on the financial covenants of VRL, and there would be no further recourse related to the iPic.
On 30 July 2019, VRLâs stock was trading at A$2.8, up by 2.941% (at AEST 12:04 PM).
Credit Corp Group Limited (ASX: CCP)
On 29 July 2019, Credit Corp reported results for the 2019 fiscal year. Accordingly, the company has recorded a 9% increase in Net Profit after Tax (NPAT) to $70.3 million. Also, the consumer loan book of the company grew by 16% to $212 million. Besides, the company has delivered strong results from US debt buying backed by 69% increase in collections, 40% increase in investment, 69% increase in year-end headcount, and a near tripling in segment NPAT. Further, the company also increased investments in Australian/New Zealand debt buying.
Reportedly, following the two and a half years of subdued investment in the core Australian/New Zealand debt buying segment, it produced near-record collections and earnings. Also, the stricter lending norms adopted by prime lenders drove the consumer lending business, and Wallet Wizardâs product witnessed recognition in the cash loan segment. Besides, the investment conditions in US debt buying market has been favourably backed by prolonged growth in unsecured credit issuance and rising charge-off rates.
Outlook 2020
FY2020 First Guidance (Source: Companyâs Announcement)
Admittedly, the company anticipates growth in earnings from the US debt buying and consumer lending business would propel the profit growth in 2020, and guidance for the profit growth is pegged between 7% to 10%. Also, the company views the prospects for increased investments across all three business segments, which has been backed by the signs of competitor stress and a return to investment growth in Australian/New Zealand debt buying. Currently, the company has provided investment guidance between $220 to $240 million for PDL.
Dividend: As per the release, the company has announced a dividend of 36 cents per share, which is 100% franked. Also, the record date of the dividend is 20 August 2019, the payment date for the dividend is 30 August 2019 and the Ex-date for the dividend is 19 August 2019.
On 30 July 2019, CCP was trading at A$26.26, up by 5.887% (at AEST 12:05 PM).
OM Holdings Limited (ASX: OMH)
On 29 July 2019, OM Holdings reported the June 2019 Quarterly Production & Market Update.
Production & Sales for Quarter Ended 30 June 2019
Production & Sales - OM (Manganese) Ltd (Source: Companyâs Announcement)
According to the release, at OM Materials (Sarawak) Sdn Bhd, the company had produced 57,901 tonnes of ferrosilicon (FeSi) and 62,750 tonnes of manganese alloy comprised mainly of silicomanganese (SiMn), and high carbon ferromanganese (HCFeMn). Also, at OM (Manganese) Ltd, the company produced Manganese ore of 195,216 tonnes with an average grade of 35.73% Mn. Besides, at OM Materials (Qinzhou) Co Ltd, the company had produced 9,132 tonnes of manganese alloy and 10,034 tonnes of manganese sinter ore.
Reportedly, the company sold a total of 58,330 tonnes of FeSi and 62,333 tonnes of manganese alloy from OM Materials (Sarawak) Sdn Bhd. Also, OM Holdings shipped 184,395 tonnes of manganese ore with an average grade of 35.29% along with sales of 2,005 tonnes domestically from the OM (Manganese) Ltd. Besides, the company sold 7,260 tonnes of manganese alloys from OM Materials (Qinzhou) Co Ltd.
Trading & Marketing: As per the release, OM Holdings recorded a total transaction worth 516,018 tonnes of ores and alloys for the quarter, which was up by 23.8% from the previous quarter at 416,729 tonnes; it represents an increase from higher volumes of third party ores traded in the current quarter. Also, the Metal Bulletin reported the price of 44% Mn ore closed at US$5.74/dmtu CIF China at the end of June 2019; the price was down by US$0.72/dmtu mainly due to an increased level of port stock in China during the quarter.
Besides, Platts had notified that price of FeSi to Japan closed down at US$1,110 per metric tonne at the end of June 2019, which was at US$1,170 per metric tonne at the end of March 2019; this has been caused by escalated production by Chinese FeSi players in China, and the comparatively weaker global export market.
On 30 July 2019, OMHâs stock was trading at A$0.8, up by 0.629 percent (at AEST 12: 07 PM).
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