The ASX is flat, albeit slightly higher, for a second day in a row.
The S&P/ASX200 gained 15.40 points or 0.19% to 7,995.80. Over the last five days, the index has gained 2.16%and is currently 1.88% off of its 52-week high.
Top-performing stocks in this index are Monadelphous Group Ltd and Judo Capital Holdings Ltd up 10.70% and 10.47% respectively.
Looking at the sectors, Utilities led the way with a 1.31% bump, followed by Information Technology which gained 1.14%. The main drag was Real Estate which lost 1.54%.
Meanwhile, the S&P/ASX Small Ordinaries (XSO) gained 0.11% today to 3,022.90. The index is 2.24% higher over the past five days.
Monadelphous reports
Monadelphous reported that key indicators for long-term resources and energy demand remained strong despite recent fluctuations in commodity prices.
The engineering services giant posted an 11% increase in FY24 revenue, reaching $2 billion, and a 16% rise in profit, totalling $62.2 million. However, Monadelphous did not provide specific earnings guidance for FY25.
The group's work in hand for FY25 was reduced by $200 million due to Albemarle's cancellation of its Kemerton expansion project in Western Australia.
Monadelphous is optimistic about continued investments by Australian iron ore miners, the progression of several new gas construction projects and an increasing share of decarbonisation projects in capital expenditure forecasts.
The company also sees growth potential in the renewable energy sector.
Monadelphous managing director Zoran Bebic said despite some recent commodity price volatility, key indicators of long-term resources and energy demand remained robust.
“Prospects remain positive in resources and energy, with Australian iron ore miners anticipated to continue investing, several new gas construction projects progressing, decarbonisation projects making up an increasing share of capital expenditure forecasts and the pipeline of renewal energy opportunities expanding.”
For FY24, Monadelphous recorded record revenue of $1.32 billion in its maintenance and industrial services segment, while engineering construction revenue increased by 31.5% to $712.7 million.
The group will distribute a final dividend of 33 cents per share on September 27, bringing the total annual dividend to 58 cents per share.
Monadelphous plans to leverage its strong balance sheet to explore acquisition opportunities to expand services and diversify its market presence.
Judo Bank reports profit
Judo Bank reported a $70 million profit, slightly surpassing expectations amid a 5% decline in earnings.
Analysts had predicted the business lender would achieve $69 million in cash earnings, driven by a $46 million profit in the first half. The bank's net interest margin (NIM), a key indicator of lending profitability, decreased to 2.85% from 3.02% in the first half, though this was above the anticipated 2.77%.
Judo Bank stated that its results met or exceeded its 2024 guidance. Total loans and advances increased by 20%, reaching $10.7 billion, while arrears fell from 2.63% in March to 2.31% in June.
Judo CEO and managing director Chris Bayliss said, “FY24 has been another year of strong financial and operational performance, delivering to our guidance targets, and growing our bank.
"This year we celebrated several milestones that highlight the incredible progress we have made since our inception in 2016, including marking our five-year anniversary as a fully licensed bank and surpassing $10 billion in lending. Judo is now an established player in the Australian business banking market.
“We have achieved lending growth of 130% per annum since obtaining our banking licence in April 2019. Our above-system growth is supported by our unique customer value proposition, which continues to resonate with SME customers, evidenced by our sector-leading net promoter score.”
The bank reaffirmed its 2025 target, aiming for 15% pre-tax profit growth and maintaining a NIM between 2.8 and 2.9%. Additionally, Judo plans to hire 20 more bankers across 10 new locations by June 2025, while expecting its cost-to-income growth to slow and improve over the next year. No dividend was declared, and shares last traded at $1.38.
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