- Amid uncertain and unpredictable conditions driven by COVID-19, few businesses have continued to fetch market attention for making dividend distributions.
- Monadelphous Group registered a 2.6% increase in FY20 revenue and declared a final dividend of 13cps. The engineering group entered FY21 with a solid forward workload.
- Aurizon Holdings reported solid FY20 result with EBIT of $909 million, up 10%, and a final dividend of 13.7cps. FY21 group EBIT guidance is in the range of $830 million to $880 million.
- GPT Group announced an interim distribution of 9.30cps while reporting a 23.3% decline in H1 FFO. The company remains well placed despite the current uncertainty, backed by factors like strong balance sheet and high-quality asset portfolio.
With uncertainties around the COVID-19 pandemic, dividends have been under pressure. However, there are some businesses that have been attempting to stand strong. In this article, we are discussing three ASX-listed companies that have recently released financial results and declared dividends. These companies are from the industrials and real estate sectors.
Record Performance of Monadelphous’ Maintenance and Industrial Services Division, Final Dividend at 13cps
Perth-headquartered engineering group, Monadelphous Group Limited (ASX: MND) has released results for FY20 ended 30 June 2020, registering record revenue performance in maintenance and industrial services.
FY20 result highlights included:
- Revenue amounted to $1.65 billion, reflecting a rise of 6% over pcp. The result indicated a significant rise in shutdown and maintenance work in the resources sector, mainly in 1H FY20, as well as the commencement of several large resource construction projects.
- Maintenance and industrial services division noted annual revenue of $1.05 billion, reflecting a 5.1% increase on the previous year. This is the third consecutive record annual revenue performance of the division.
- MND reported a net profit after tax amounting to $36.5 million. The earning for 2H FY20 were impacted by disruption caused by COVID-19 and disappointing levels of profitability in the Water Infrastructure business.
- Cash balance at end-FY20 stood at $208 million, reflecting a strong balance sheet despite challenging economic and operating conditions.
Since the beginning of FY20, the company secured new contracts and extensions worth around $1.2 billion, including numerous strategically important contract wins for Mondium and its rail infrastructure maintenance services business.
During 1H, the company completed a number of strategic acquisitions, adding its overseas diversification strategy into South America and expanding its service offering in the coal seam gas and rail sectors.
The Board declared a final dividend of 13 cents per share (cps), taking the full-year dividend to 35cps, fully franked. This reflects a dividend payout ratio of around 91% of reported net profit after tax.
Entering FY21 with a solid forward workload, MND is well positioned to capitalise on opportunities and address the challenges ahead, according to Monadelphous Managing Director Rob Velletri.
Stock Performance - MND stock closed the day’s trade at $11 per share on 21 August 2020, moving up by 0.733% from its previous close. MND has a market capitalisation of $1.03 billion and annual dividend yield of 3.18%. The stock has generated returns of more than 12% in the last one month and negative 35.03% in the last one year.
Aurizon Holdings Maintained FY20 Dividends at 100% for Fifth Year
Australia’s largest rail freight operator, Aurizon Holdings Limited (ASX: AZJ) reported solid FY2020 result with EBIT in line with guidance range. The company reported group underlying earnings before interest and tax amounting to $909 million, reflecting a rise of 10% over pcp.
Underlying Net Profit After Tax for the period stood at $531 million, indicating an increase of 12% from FY19. Return on Invested Capital (ROIC) experienced a growth of 1.2ppt to 10.9% against FY19.
The company experienced solid tonnages in Coal and Network with no significant volume impact from COVID-19. The bulk business outperformed during FY20, on the back of new contracts and efficiency improvement.
AZJ declared a final dividend of 13.7cps, franked to 70%, taking the full-year dividend to 27.4 cps, 70% franked. This represents 100% of continuing underlying net profit after tax for the fifth consecutive year.
Outlook - For FY2021, group EBIT guidance is in the range of $830 million to $880 million. Considering the current view of COVID-19 impact on coal demand, the company is expecting flat coal volumes of 210-220mt.
Stock Performance - At the close of session on 21 August 2020, the stock of AZJ traded flat at $4.660, with a market capitalisation of $8.92 billion and annual dividend yield of 5.88%. The stock has generated returns of 1.75% and negative 14.81% during the last three and six months, respectively.
GPT Group Well Placed to Manage through the Pandemic, Announced Interim Distribution of 9.30cps
GPT Group (ASX: GPT) is a leading property group of Australia, which owns and manages a portfolio of retail, office and logistics property assets in the country.
Recently, the company released activities report for the half-year period ended 30 June 2020, highlighting
- Funds from Operations (FFO) amounted to $244.5 million, which resulted in FFO per security of 12.55 cents, a fall of 3% over pcp.
- During 1H FY20, the company reported net tangible assets of $5.52 per security, indicating a decline of 4.8% on 31 December 2019, primarily due to decline in property valuations.
- GPT posted net loss after tax amounting to $519.1 million, mainly due to negative property valuation movements of $711.3 million.
During the half year, the company finalised three logistics developments, with a combined value of $89.1 million and a weighted average lease expiry of 7.5 years. Also, GPT acquired two logistics facilities for a consideration of $74.6 million with a weighted average lease expiry of 7.6 years.
GPT paid an interim distribution of 9.30 cents per security, which indicated a payout ratio of 99.6 per cent of free cash flow. The company closed the period with a healthy balance sheet comprising cash and undrawn bank facilities of $1.2 billion and less than $5 million of debt maturing through to December 2021.
Backed by a strong balance sheet, a high-quality asset portfolio and a very experienced management team, the company remains well placed despite the current uncertainty arising from COVID-19 pandemic, according to GPT CEO Bob Johnston.
Stock Performance - At the close of session on 21 August 2020, the stock of GPT traded flat at $3.770 per share. The company has a market capitalisation of $7.34 billion and annual dividend yield of 6.01%. The stock has generated negative returns of 6.22% and 39.39% during the last three months and six months, respectively.