- WOA, ZNO, SGO and MMM have delivered over 200% return to their shareholders in the year-to-date period, as of 22 June 2020.
- Wide Open Agriculture, a regenerative food and agriculture company, has expanded product offerings across online sales portal with new partnerships.
- Stream Group has entered a deal to wholly acquire specialist engineering group, Mayfield Group Investments. It is set to pay a dividend of 2cps on 26 June.
- While Marley Spoon is expecting to reach positive operating EBITDA six months earlier than previously guided, Zoono Group has executed several distribution agreements.
Given the prolonged virus-related pandemic, governments are struggling with managing public health and reviving their respective economies. Despite the pandemic impact on stock exchanges and businesses on a global level, there have been some businesses that delivered decent returns to their shareholders in the past few months, primarily on the back of products and services offered.
Let us discuss market updates of few ASX-listed companies that have delivered excellent returns in the past three-month and year-to-date period to their shareholders.
Wide Open Agriculture Limited (ASX: WOA)
Regenerative food and agriculture company, Wide Open Agriculture Limited (ASX: WOA), on 22 June 2020, announced to have expanded and diversified its product offerings across online sales portal, on the back of new partnerships with regenerative and ethical food producers. Expanded range includes products such as flour, honey, pork, oats, eggs, milk, and bread. Moreover, ready-to-go meals have been added to the online platform from leading chefs and restaurants.
Research Agreement - Recently, the company contracted CSIRO (Commonwealth Scientific and Industrial Research Organisation) for providing research services, concerning scaling-up novel protein extraction process from lupin seeds by the Curtin University, with the total cost of the project at $115,000
Of the total project cost, WOA is committed to provide $57,500 while the remaining $57,500 would be covered through receipt of funding from the industry growth centre of Food Innovation Australia Ltd.
Completion of $3Mn Placement - In early June 2020, the company also closed a placement, receiving binding commitments from investors for $3.0 million. The placement received robust support from WOA’s numerous existing shareholders and introduced several new, high net-worth investors to its share register. With this placement and existing cash reserves, the company is placed in a decent position to implement a systematic and targeted growth strategy while generating sustained shareholder value in 2020 and beyond.
On 22 June 2020, the stock of WOA settled at $0.430 per share, inching upward by 2.381% against its previous closing price. The stock of WOA has delivered returns of 366.67% and 223.08% during the last three-month and year-to-date period, respectively.
Zoono Group Limited (ASX: ZNO)
Zoono Group Limited (ASX: ZNO) is involved in the development, manufacturing and distribution of antimicrobial solutions that are environmentally friendly, scientifically-validated, and long-lasting. As per the recent quarterly rebalance of S &P/ASX indices, the company has been added to All Ordinaries, effective from 22 June 2020.
Trading Update - In early May 2020, the company announced to have invoiced business to business (B2B) sales in excess of NZ$11.0 million (unaudited), excluding online consumer sales for the month of April 2020. ZNO signed a number of new distribution agreements in Europe as well as the United Kingdom.
The company in April 2020 inked an exclusive distribution agreement with a subsidiary of Johns Lyng Group, “RestorX Australia Pty Ltd” for the business to business market in Australia. The deal is for an initial period of five years, with a right for a further 5-year renewal. As per the agreement, all products would be distributed under the Zoono brand.
For the quarter ended 31 March 2020 (Q3 FY20), the company reported sales revenues amounting to NZ$15.7 million and positive operational cash flow of NZ$3.1 million. Its available cash resources surged to NZ$5.7 million, with a positive net receivables/payables balance of NZ$4.8 million.
Do Read: Share Price of Zoono skyrocketed.
Sales of the UK segment witnessed a rise to reach NZ$3.5 million, with significant business in the pipeline with airlines, airports, transport and commercial cleaning companies.
On 22 June 2020, the stock of ZNO closed the day’s trade at $2.890 per share, moving upward by 6.25% against its previous closing price. The stock of ZNO has delivered returns of 115.02% and 297.08% during the last three-month and year-to-date period to shareholders, respectively.
Stream Group Limited (ASX: SGO)
Australia-based IT sector player, Stream Group Limited (ASX: SGO) is engaged in the licensing of its claims management software to insurance companies.
Stream to acquire Mayfield Group Investments - On 22 June 2020, the company announced to have entered into a conditional share purchase agreement for the 100% acquisition of Mayfield Group Investments Pty Ltd and its subsidiaries for $25 million. The acquisition will be fully funded through the issue of new Stream shares, with a general meeting to obtain shareholder approval expected in mid-August 2020.
Founded in 1936, Mayfield is a specialist engineering group of companies, catering to critical infrastructure and facilities across Australia with electrical products and services.
Dividend Distribution - Recently, the company also declared a fully franked dividend amounting to 2 cents per share, with cash amount reaching $4,319,928. The issue price of shares with respect to the dividend reinvestment plan would be 0.25 cents per share.
During the March 2020 quarter, the company experienced a decline in revenues from insurance claims management software in its major market “New Zealand”, as a result of low volume of insurance claims. The company has continued its work on upgrading BuildAssist, which is its core software product.
Cash flow from investing activities during the quarter consisted of the $1.63 million earn-out payment, which was received from the purchaser of Stream’s claims management business in 2017.
The stock of SGO last traded at $0.022 per share on 19 June 2020. The stock of SGO has delivered returns of 159.50% and 224.37% during the last three-month and year-to-date period to shareholders, respectively.
Marley Spoon AG (ASX: MMM)
Operator of a global subscription-based meal kit service business, Marley Spoon AG (ASX: MMM), recently announced that Perennial Value Management Limited made a change to its substantial holding in the company on 29 May 2020 and its current voting power stands at 12.68% as compared to the previous voting power of 9.36%.
Marley in early May 2020 completed an oversubscribed placement, raising $16.6 million. The company received robust demand from new institutions and existing eligible shareholders. The proceeds raised from the placement would be used to strengthen balance sheet to accelerate the global growth strategy.
During Q1 FY20, the company experienced strong growth with a rise of 46% in revenue over pcp due to the COVID-19 crisis. MMM achieved positive operating cash flow on a global basis for the first time in Q1 2020.
The company is expecting to reach positive operating EBITDA in Q2, six months earlier than previously guided.
On 22 June 2020, the stock of MMM moved downward by 0.939% to $1.055 per share against its previous closing price. The stock of MMM has delivered returns of 217.91% and 280.36% during the last three-month and year-to-date period to shareholders, respectively.
Disclaimer: All the currencies mentioned are in AUD unless specified
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