- BGI continues to explore innovative new initiatives in order to secure more funding with the view to continue growing the finance company operation.
- VGL responded to the challenging circumstances presented by coronavirus pandemic by taking wide-ranging measures to strengthen the balance sheet to ensure it is well-positioned to weather significant downside scenarios.
- MHJ is possessing resilient balance sheet and its digital sales reached new highs.
On 17th July 2020, S&P/NZX50 rose by 0.69% to 11,584 while S&P/NZX20 witnessed an increase of 0.78% to 7,720. On the same day, S&P/NZX All Health Care rose by 0.49% while S&P/NZX All Communications Services fell by 0.32%.
In this article, we are going to look at five stocks under the investors’ radar.
Southern Charter Financial Group Limited (NZX: SNC)
For the year ended 31 March 2020, the company reported a net loss attributable to shareholders of $159,877. This compares with a net loss attributable to shareholders of $112,997 for the previous year. The financial results consisted mainly of expenditure relating to the maintenance of the listed company and interest earned on short term cash deposits, as well as activities related to work undertaken on the evaluation of suitable businesses for acquisition.
Future Growth Strategy
The company remains in a position with a strong balance sheet which includes significant cash resources. It has considered a number of possible acquisitions and the Board intends on securing a suitable acquisition prior to the 31 March 2021 year-end.
The stock of SNC closed the day’s trading at NZ$0.002 per share on 17th July 2020. The company has a market capitalisation of around $1.030 million as on 17th July 2020.
Blackwell Global Holdings Limited (NZX: BGI)
Blackwell Global Holdings Limited is a New Zealand incorporated financial service company, listed on the main board of New Zealand Stock Exchange.
Double-Digit Decline in Revenue
For the 12 months ended 31st March 2020, the company reported total revenue of NZ$0.43 million, down by 47 per cent from the previous year. The company reported a loss from ordinary activities after tax attributable to a security holder of NZ$0.69 million, down by 18.5 per cent. The ongoing challenge for the company in respect of growing its finance company operation continues to be the ability to raise debt finance from third party wholesale investors which can then be deployed towards funding loan receivables, and generating interest and fee income, and ultimately a profit margin for the company.
The loan book as at 31 March 2020 was $1.57 million. All loans were secured by first mortgages over residential properties.
Financial Results (Source: Company Reports)
The stock of BGI closed the day’s trading at $0.050 per share on 17th July 2020, an increase of 11.11% on an intraday basis. The company has a market capitalisation of around $25.11 million as on 17th July 2020.
Michael Hill International Limited (NZX: MHJ)
MHJ Registers Strong Growth in Digital Sales
Michael Hill International Limited has provided trading highlights for the fourth quarter. Key highlights have been mentioned below:
- Adjusted same store sales for the quarter declined by 4.1%, as compared to the previous year, underpinned by the initiatives gathering momentum throughout business;
- Online sales were up by 193% against the prior year, delivering some of the highest weeks in the company’s history;
- In Q4FY20, the margin increased by 200 bps against the prior year, to deliver flat profit dollars for the quarter on an adjusted same store sales basis.
The stock of MHJ closed the day’s trading at NZ$0.330 per share on 17th July 2020, reflecting a fall of 2.94% on an intraday basis. The company has a market capitalisation of around $127.964 million as on 17th July 2020.
Vista Group International Limited (NZX: VGL)
Update on Impacts of COVID-19 on Operations
The company’s major workforce continued to work from home during the lockdown period. A few employees returned to work at the company’s New Zealand head office. The company has taken several measures to help its customers in the lockdown:
- Movio has launched Movio Research 2.0 in the USA and the UK and Australia, focused on increased self-service and capability for studios;
- Vista Cinema has worked with cinemas in the USA to re-configure mobile apps to enable their customers to purchase popcorn and other items through kerb-side pickup;
- Vista Cinema has partnered with Shift72, a local New Zealand company, to enable cinemas to implement their own branded TVOD platforms, with customers already live in the USA and New Zealand.
The company has also undertaken a thorough review of its businesses against future scenarios to determine the extent to which further cost reduction actions need to be implemented. The result of this review is that it has started the discussion with its staff around a proposed new structure for the core companies (Vista Cinemas, Vista Group and Movio).
The stock of VGL closed the day’s trading at NZ$1.280 per share on 17th July 2020, reflecting a decline of 4.48% on an intraday basis. The company has a market capitalisation of around $292.627 million as on 17th July 2020.
Green Cross Health Limited (NZX: GXH)
Green Cross Health Limited is a trusted New Zealand primary health care provider with multi-disciplinary health care teams with the purpose of working together to support healthier communities.
GXH Witnessed Reduction in Net Debt
For the year ended 31st March 2020, the company has reported revenue of $568.5 million, consistent with the previous year. The company has also reduced its net debt by $10 million. Other key highlights:
- Operating Profit (EBIT) stood at $31.0 million up by 5.5%;
- The company reported net profit after tax attributable to shareholders of $13.5 million, down by 16.2%;
The stock of GXH closed the day’s trading at NZ$1.050 per share, down by 3.67% on 17th July 2020. The company has a market capitalisation of around $150.310 million as on 17th July 2020.