What you need to learn from trends of IOOF, Ingenia Communities, Eclipx?

  • Oct 18, 2019 AEDT
  • Team Kalkine
What you need to learn from trends of IOOF, Ingenia Communities, Eclipx?

Every day the stock market experiences some highs and lows, which brings the economy to a new level. These highs and lows are contributed by some companies, who update the market with their recent updates. By the closure of the trading session, on 18th October 2019, the benchmark index S&P/ASX 200 last traded at 6,649 points with a fall of 0.5% from its prior close. Let’s have a look at the three stock with their recent updates:

IOOF Holdings Limited

IOOF Holdings Limited (ASX: IFL) is primarily in the business of financial advice and distribution, as well as portfolio and estate administration.

Appeal deadline on Federal Court proceedings lapses

IFL updated the market on the decision taken by the Federal Court with respect to the proceedings brought by APRA for 2 IFL’s APRA regulated companies along with some directors and executives, with the release made on 20 September this year, with respect to that verdict.

The time limit for APRA for lodging an appeal was due to lapse on 18 October 2019, and APRA notified that it would not appeal the issue.

IFL would keep on working to conclude ANZ P&I business acquisition along with supporting positive member outcomes, strengthened by solid governance and better standards.

Revised Terms Regarding the Acquisition of ANZ P&I

IFL recently through a release dated 17th October 2019 notified the market that it has received acceptance of No Objection Notices from OnePath Custodians as well as Australia and New Zealand Banking Group Limited (ASX: ANZ) with respect to the handover of the ANZ Wealth Pension and Investments business to IFL. However, the release also possesses changes to the terms of the ANZ P&I acquisition that have been accepted by ANZ and IFL and are as follows:

  • The purchase price of ANZ Wealth Pension and Investments business has been revised from $950 million to $825 million, however the purchase price remains subject to a completion adjustment for the net assets of ANZ P&I.
  • The changes also contain a revised date after that any party could terminate the acquisition of ANZ Wealth Pension and Investments in the event of any outstanding conditions precedent on that date.
  • It added that the parties accepted to extend the date to 31 December 2019 from the previous date of 17 October 2019. However, the changes provide individual party with an ability to shift that date based on a month until but not after 30 June next year.
  • In addition, the receipt of approval from APRA happens to be the requirement for the acquisition of ANZ P&I to be completed. The company on 4th October 2019 has submitted its final application to APRA for approval.

IFL Became Substantial Holder

The company has recently released a series of announcement, wherein it was mentioned that IOOF Holdings Limited has ceased to become a substantial holder in SRG Global Limited and PWR Holdings Limited, which came into effect on 10th October 2019.

Financial Statistics

The company reported statutory NPAT amounting to $28.6 million in FY19, reflecting a fall of 67.7% in comparison to FY18. This comprises of remediation provision standing at $156.2 million after tax. However, the company has continued organic growth amid challenging competitive environment. Besides the industry headwinds, the resilient platform net inflows amounted $1.4 billion.

When it comes to the performance of the stock, IOOF Holdings Limited last traded at a price of $7.3 per share with a rise of 3.546% compared to its last closing price on 18th October 2019. In the time frame of six months period, the stock gave a return of 7.77 percent.

Ingenia Communities Group

Ingenia Communities Group (ASX: INA) is the owner, as well as operator that is into developing good quality and reasonable seniors living shelter for the older citizens of the country.

An Update on Entitlement Offer
  • The company comprising of Ingenia Communities RE Limited as responsible entity for Ingenia Communities Fund, and Ingenia Communities Management Trust as well as Ingenia Communities Holdings Limited made an announcement on 17th October 2019.
  • The announcement was in relation to an institutional placement as well as accelerated non-renounceable entitlement offer of new Ingenia stapled securities, each consisting of 1 ordinary share in Ingenia Communities Holdings Limited, 1 ordinary unit in Ingenia Communities Management Trust and 1 ordinary unit in the Ingenia Communities Fund, with an objective to raise an amount of $131.1 million.
  • The company would be utilising the proceeds for the acquisition of additional lifestyle communities, as well as to provide additional capital growth.

A look at the Utilisation of Funds

  • In another update, the company announced that it has successfully wrapped up the placement amounting to $21.3 million of around 5.4 million securities, as well as the institutional component of the entitlement offer at an issue price of $3.93 /security.
  • The company stated that $102.7 million would be deployed in the acquisition of 3 established communities, 2 parcels of land adjoining existing communities and a large greenfield site north of Sydney.
  • The remaining balance in funds are anticipated to be utilised as identified pipeline opportunities as well as for developments progress.

The company recently announced that it would be holding its 2019 Annual General Meeting on 12th November 2019 and following would be the key items:

  • Item 1: Amendment to the Constitution of the Trust
  • Item 2: Amendment to the Constitution of the Fund

When it comes to the performance of the stock, Ingenia Communities Group last traded at a price of $4.25 per share with a rise of 1.19% on 18th October 2019. It witnessed a rise of 37.23% return in the time frame of six months.

Eclipx Group Limited

Eclipx Group Limited (ASX: ECX) is in the business of financing, management and administration of vehicle and equipment. The company has recently in September provided an update on its strategy wherein, it outlined the following key points:

  • With respect to credit risk management, the company stated that over 32 years of unique credit insights, the company has developed market leading credit scorecard as well as sustainably low credit losses across the cycle.
  • It has well defined asset eligibility criteria that aligns with funding warehouses and securitization risk tolerance.
  • Eclipx stated that it has examined numerous monetisation alternatives, which include a sale of debtor book, internalisation of collections and forward flow arrangements.
  • ECX is extremely focused on collecting debtor book and having a priority to manage the business for capital as well as to maximise the shareholder value.

Update on Corporate Debt Facility

Recently, the company published a release, wherein it provided an update on corporate debt facility. ECX stated that it has received credit approved term sheets and inked commitment letters from its existing lenders, as well as investment committee approved commercial terms from its current US Noteholder in order to amend and extend its Corporate Debt facilities.

Sale of Commercial Equipment Finance
  • Eclipx Group Limited through a release dated 13th September 2019 announces the sale of its non-core commercial equipment finance Australia business at the consideration of $14.6 million to Grow Asset Finance.
  • The consideration amount of $14.6 million reflects a marginal premium to net tangible assets.
  • The proceeds, which would be received from the transaction would be implemented for the cut in the corporate debt, steady with ECX’s intent as summarised in its 1H19 report.

When it comes to the performance of the stock, Eclipx Group Limited last traded at a price of $1.720 per share with a rise of 1.176% from its last close on 18th October 2019. It witnessed a rise of 91.01% return in the time frame of six months.


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