The ASX will finish the week higher as we launch into the final hour of trading.
At 3pm, the S&P/ASX200 had gained 37.40 points or 0.46% to 8,082.50. Over the last five days, the index has gained 0.73% and is currently 0.81% off of its 52-week high.
The top-performing stocks in this index at the time of writing were Downer EDI Ltd and Fletcher Building Ltd, up 18.93% and 10.27% respectively.
The best-performing sectors were Energy and Industrials, up 1.71 and 1.40% respectively. It was the Consumer sectors that were hit hardest with Consumer Discretionary and Consumer Staples losing 0.82% and 0.42% respectively.
Over on the small caps index, the S&P/ASX Small Ordinaries jumped 0.82% higher to 2,991.70. Over the past five days, the index has lost 0.83%.
Downer on the up
Downer EDI reported its financial results for the fiscal year ending June 30, 2024.
The company achieved a 34% increase in pro forma earnings before interest, taxes and amortisation (EBITA), amounting to $384.1 million, with an EBITA margin growth of 0.7 percentage points, bringing the margin to 3.3%.
Notably, the EBITA margin in the second half of FY24 rose to 4.0%, up from 3.0% in the same period last year.
The company’s statutory net profit after tax (NPAT) stood at $82.1 million. Key highlights include the return of the Utilities business to profitability, improved margins in the Facilities business, progress in cost reduction efforts, and the delivery of cash-backed profits.
Managing director and CEO Peter Tompkins said: “Over the past 18 months, we have refreshed our leadership team and made significant changes to our operating model and organisational structure, to redefine roles, authorities, and accountability for performance.
“We are making good progress in our business turnaround, delivering a cash-backed result alongside double digit underlying and pro forma EBITA and NPATA growth, whilst focusing on reducing the risk profile of our portfolio and strengthening our balance sheet.
“The result demonstrates our ability to deliver earnings and EBITA margin improvement in varied market conditions within our enhanced risk guardrails. It also highlights the resilience of our diversified and high-quality portfolio, the benefits of scale and our capacity to achieve operating and cost efficiencies.
“During the year we achieved $130 million in annualised gross cost-out, surpassing our initial target of $100 million. We are now focused on realising the full $175 million in annualised cost-out target with a clear plan to achieve the remaining $45 million by the end of FY25.”
Fletcher Building announces industry response to WA plumbing issues
Fletcher Building announced that its subsidiary, Iplex Pipelines Australia, in collaboration with the Western Australian Government and key industry stakeholders, has reached an in-principle agreement to address plumbing failures in some Western Australian homes constructed with Typlex Pro-Fit pipe.
This agreement, referred to as the Joint Industry Response (JIR), aims to rectify the issues that have arisen due to these plumbing failures. The company expects to record a pre-tax provision of some A$155 million in its FY25 financial statements, contingent upon the finalisation of the JIR.
Ramsay Health hits 52-week low amid profit decline
On the flipside, Ramsay Health Care Ltd shares declined by 8% intra-day, reaching a 52-week low of $40.94, following the release of its full-year results for FY 2024.
The company's total revenue increased by 9.4% to $16,772.1 million, driven by higher patient activity and new capacity.
However, the EBIT from continuing operations decreased by 0.4% to $997.6 million, primarily due to a decline in earnings from Ramsay Santé, despite improvements in Australia and the UK.
Notably, non-recurring items had a negative impact of $36.4 million on EBIT, contrasting with a $42.1 million benefit in the previous year. Excluding these items, EBIT rose 6.1% in constant currency to $1,034 million.
Profit after tax from continuing operations fell by 2.7% to $270.6 million. Despite the decrease in profit, the company increased its full-year dividend by 6.7% to 80 cents per share, offering a dividend yield of around 2%.
“I am pleased to report an operating result that reflects the benefits of growing patient activity and productivity improvement programs across all of our regions. We have made some progress with private sector payors on tariff indexation, however tariffs from payors remain out of touch with cost inflation,” Ramsay CEO Craig McNally.
“Margin recovery has been slowed by the significant cost inflation impacting the private hospital industry over the last few years. Wage inflation exceeding expectations remains a critical risk. Tariff outcomes for the UK and France from April 1 and March 1, 2024, respectively were well below recent inflation levels making earnings growth in both markets challenging in FY25.”
Five at five
Synertec lifts group income and revenue 26% and customer cash receipts 31% in 2024 financial year
Synertec Corporation Ltd (ASX:SOP) notched a 26% increase in revenue and other incomes to bring in $19.7 million this financial year, with the growth mostly driven by expansions to its engineering services and contracts for its standalone micro-grid renewable energy and storage solution, Powerhouse.
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Cyprium Metals enters $40 million loan facility with Glencore (LON:GLEN) to bring Nifty’s copper products to market
Cyprium Metals Ltd (ASX:CYM, OTC:CYPMF) has entered into a binding term sheet with Glencore International AG for A$40 million in offtake financing.
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Carnarvon Energy sharpens focus on Dorado project with sustainability at the forefront
Carnarvon Energy Ltd (ASX:CVN) has outlined its development pathway for the Dorado Project off the coast of Western Australia in its 2024 sustainability report, with a focus on balancing both energy demands and environmental responsibility.
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Novo Resources extends high-grade Main Lode to 500 metres at Nunyerry North, Egina Gold Camp, WA
Novo Resources Corp (TSX:NVO, OTCQX:NSRPF, ASX:NVO) has made broad progress at the Egina Gold Camp joint venture (JV) in the Pilbara region of Western Australia, extending the high-grade Main Lode at Nunyerry North to 500 metres of strike and striking high-grade gold along the Estrid Fault.
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Antipa Minerals confirms gold mineralisation at Minyari Dome Pacman targets
Diamond core drilling results have confirmed gold mineralisation at Antipa Minerals Ltd (ASX:AZY)’s 100%-owned Minyari Dome Gold-Copper Project in the Paterson Province of Western Australia.
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On your six
Regenerative medicine’s many applications are changing the face of health care
Unlike traditional treatments that aim to manage symptoms, regenerative medicine seeks to address the root cause of a condition by deploying the body’s own repair mechanisms or by introducing new, healthy cells to work with the body.
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The one to watch
archTIS reports record revenue growth and strong cash flow
archTIS Ltd CEO Daniel Lai joins Proactive’s Tylah Tully to discuss its 2024 financial year, which was highly successful with the company reporting a 54% increase in revenue and a positive operating cash flow of A$1.6 million.
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