The ASX has dipped today. The S&P/ASX200 dropped 15.20 points or 0.19% to 8,069.30.
Over the last five days, the index has gained 0.90% and is currently 0.97% off of its 52-week high.
Bottom-performing stocks in this index are Johns Lyng Group Ltd and Lovisa Holdings Ltd, down 26.30% and 12.04% respectively.
Looking at the sectors, Energy was the only real winner in a sea of black and red up 2.53%. The worst performed sector was Information Technology down 1.15%, followed by Financials which lost 0.92%.
As for small caps, the S&P/ASX Small ordinaries lost 0.71% today to finish at 3,019.20. Over the last five trading days, the index has dropped 0.13%.
Johns Lyng falls
Johns Lyng Group reported its financial results for the year ended June 30, 2024, highlighting progress in strategic and operational initiatives and achieving record Business as Usual (BaU) earnings.
However, it wasn’t enough to stop the company from falling to an intra-day three-and-a-half-year low. Shares of the building services provider dropped as much as 32.9% at one point to A$3.740, their lowest since late March 2021
The group reported FY24 revenue of A$1,158.9 million, 5-6% below expectations and also below its own forecast of A$1.21 billion, with BaU revenue (excluding Commercial Construction) increasing by 9.7% to A$929.7 million missing its forecast of A$1.01 billion and consensus estimate of A$997 million.
BaU EBITDA saw a significant rise, increasing by 18.2% to A$111.2 million.
However, the company believes that by building on successful strategic acquisitions and organic growth during FY24, it is well-positioned for sustained growth in FY25. The group has started the first half of FY25 with a robust workflow and has projected a 15.1% increase in BaU revenue growth for the year ahead.
“We are very pleased to deliver our results for the 2024 financial year, which demonstrate the strength of our defensive growth strategy," group CEO Scott Didier AM said.
"We have focused on opportunities that are aligned with our core capabilities, provide annuity-style revenues and are predominantly unaffected by economic cycles.
“We have continued to grow amid a challenging macro-economic environment which is a testament to our people and underscores our defensive business model which gives us confidence that our growing portfolio of businesses will continue to deliver into the future.
“FY24 marked an inflection point for our growth in the United States. We grew the number of Business Partners to 25, launched our core business services lines and were appointed to AllState’s Emergency Response and Mitigation Panel.
"This single panel gives us potential access to over 16 million people across America, highlighting the scope of the opportunity we see in this market.”
Lovisa drops
While shares were down today, following the release of Lovisa Holdings Ltd’s earnings there’s nothing for the company or its shareholders to be too worried about.
It seems the market is just processing the results, but the company has gained 73% for the year.
FY24 was a pivotal year for Lovisa, marked by significant expansion and financial growth. The company opened 128 new stores, increasing its global presence to 900 stores across 46 markets. It reported nearly $700 million in revenue, reflecting a 17% year-over-year increase.
This growth contributed to a 110 basis point improvement in gross margin, which reached 81%. Consequently, net profit grew by 21%, with earnings per share (EPS) at 75.4 cents.
Lovisa also made strides in its online presence by establishing itself on marketplaces such as Tmall, ASOS (LON:ASOS) and The Iconic, aligning with its strategy to become an omni-channel retailer.
To support its expanding operations in the Americas, the company opened a new 5,000 square metre warehouse in Columbus, Ohio, now serving more than 200 stores in the region.
In terms of store management, Lovisa closed 14 franchise stores in the UAE, converting three of them to company-owned sites. Additionally, 14 other stores from its global network were also closed.
The board declared a final dividend of 37 cents per share, which may influence the Lovisa share price.
CEO Victor Herrero said, “The company has once again delivered strong sales, gross margin and profit growth at the same time as investing in the structures to support our steady global expansion.
"This positions us well to continue our growth in both existing and new markets. I want to again share my appreciation of the entire global Lovisa team for their hard work and dedication to achieve these results.”
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