Territory Stories

The Centralian Advocate Tues 23 Aug 2022



The Centralian Advocate Tues 23 Aug 2022


Centralian Advocate; NewspaperNT




Made available via the Publications (Legal Deposit) Act 2004 (NT)




Community newspapers -- Northern Territory -- Alice Springs; Tennant Creek (N.T.) -- Newspapers; Alice Springs (N.T.) -- Newspapers; Australia, Central -- Newspapers

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News Corp Australia

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Copyright. Made available by the publisher under licence.

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News Corp Australia



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12 BUSINESS Tuesday August 23 2022 NTNE01Z01MA - V1 The majority of these costs are not expected to carry into future years Mark Ronan worst is over REAL estate boss John McGrath (pictured) believes the property market has already endured the worst of the current cycle. We believe that, realistically, in the metropolitan markets of Australia, most of them anyway, were at least 10 per cent, more like 15 per cent down from the peak, he said. McGraths net profit for the year to June 30 fell 38 per cent to $11.7m due to previously flagged one-off, significant items. It declared a 1c a share final dividend. The stock dropped 2.5c, to 41.5c. Vote yes AERIAL mapping provider Nearmap has urged investors to vote in favour of a $1.1bn takeover offer by private equity giant Thoma Bravo at a meeting in November, saying it is in their best interests. The offer is $2.10 cash a share. Nearmap shares rose 5.3 per cent to $2.07 on Monday. Healthy outlook SHARES in NIB surged more than 7 per cent to $7.78 on Monday, after it announced it outpaced the industry in new membership growth. But its net profit sank 16 per cent to $133.8m in the year, following losses across its investment portfolio. It will pay a final dividend of 11c a share. Strategic review EML Payments boss Emma Shand says she is absolutely committed to the fintechs current regulatory footprint, as she kicks off a strategic review of the business. EML on Monday announced a $20m on-market buyback as it suffered a $4.8m annual loss. Shares in EML rose 6.1 per cent to $1.125. fell 30 per cent in the year to June 30. Nick Scali also blamed the rising freight costs for getting its furniture, sofas and home furnishings out from its Asian factories for an 11 per cent drop in net profit to $74.9m for the year to June 30. The inclusion of its recently acquired, lower margin Plush retail chain also diluted earnings. Revenue increased 18.2 per cent to $440.96m. Nick Scali declared a 35c final dividend, up 40 per cent on a year ago. Nick Scali chief executive Anthony Scali said on a positive note the retailer ended the year with a significant order bank which will translate to revenue in 2023. Nick Scali expects the overall gross margin and cost of doing business to improve as the synergies of Plush acquisition are realised. The retailer said July trading was positive with total written sales orders for the group of $43.2m, up 64.1 per cent on last year. However, given the current global economic environment, the business expects to face challenges in respect of potential rising freight costs and infla tionary pressure on operating costs over the next 12-24 months. The Shaver Shop reported a 4.2 per cent increase in revenue to $222.7m for the year to June 30 as it benefitted from people buying personal grooming products as they returned to the office and socialised more. Net profit was down 4.5 per cent to $16.69m for the year but was still the second highest in the companys 36- year history and the top end of guidance provided in June. In a trading update, Shaver Shop said between July 1 and August 18, total sales for the retailer were up 19.2 per cent on the same period last. It declared a final dividend of 5.5c a share. Freight costs take polish off profits HOME furnishings retailer Adairs disappointed investors with a sharp drop in annual profit as rocketing global supply chain costs continue to hit. Adairs shares tumbled 13.7 per cent to $2.20 but other retailers which also reported lower profits on Monday fared better. Nick Scali rallied 5 per cent to $10.51 and The Shaver Shop closed flat at $1.17. Adairs on Monday reported a 12.9 per cent rise in annual revenue to $564.476m for the 12 months to June 26, while the blowout in cost of doing business, generated particularly by higher sea freight costs saw net profit slump nearly 30 per cent to $44.89m. It will pay a 10c final dividend. Adairs chief executive Mark Ronan said the company, which also owns the brands Mocka and Focus on Furniture, produced another year of record sales. But he said significant operational disruptions related to Covid-19 impacted the groups cost base and meant the growth did not translate into an increase in profits. The majority of these costs are not expected to carry into future years and while a number of macroeconomic headwinds have emerged in recent months, we are confident that this tougher environment will favour companies such as Adairs, Mocka and Focus all of whom provide a strong value proposition to the large and growing middle-market consumer. Adairs said it is expecting an improvement in sales for 2023, targeting group sales of $625m to $665m, although group earnings before interest and tax (EBIT) would be flat to slightly higher at between $75m to $85m. Underlying group EBIT of $76.4m r e ta i l ELI GREENBLAT Surging global supply chain costs hurt Adairs profit in the 2022 financial year. Picture: Richard Walker Ampols dividend up on record result AMPOL has doubled its dividend payout after delivering the strongest half-year replacement cost operating profit in its history of $734m. The result includes $693.1m from continuing operations. Statutory net profit after tax for the six months to June 30 was $695.9m, an increase of 114 per cent compared to the prior corresponding period. The group results included two months of trading from its NZ acquisition Z Energy and a full six months of sold business Gulls earnings. Total sales vol umes increased to 11.5 billion litres. The interim dividend of 120c per share will be paid on September 28 and is more than double 2021s interim dividend. Ampol shares rose 2.3 per cent to $34.92 on Monday. Managing director Matt Halliday says the result was the groups strongest against the backdrop of increased market volatility due to the global energy shock, Covid-19 outbreaks and extreme weather. Since the end of the half, global crude and product markets have continued to experience significant levels of volatility, falling in mid-July, Mr Halliday said. ASX slides as earnings weigh on investors THE Australian sharemarket endured its worst session in six weeks on Monday as a number of weak corporate earnings and fears of more aggressive rates hikes in the US made investors nervous. The ASX 200 index closed 67.6 points, or almost 1 per cent lower at a six-day low of 7046.90 points. Halfway through the reportings season, CommSec chief economist Craig James said growth in revenue had outpaced rising expenses for the majority of companies and that all but two ASX 200 companies had issued a dividend. Construction materials business Adbri was the worst per former on Monday, with its shares down 16.9 per cent to $2.21 as its interim profit fell 15 per cent to $48.1m. The Star Entertainment Group also disappointed, its shares sliding 2.4 per cent to $2.84 after it reported a $198.6m loss for the year to June 30 and revenue fell 1.2 per cent to $1.53bn. Lendlease says 2024 will see better times GLOBAL development giant Lendlease has flagged that it will not hit its straps until 2024, despite taking on big projects like the $3bn One Circular Quay luxury development in Sydney. Chief executive Tony Lombardo is seeking to shift the company away from its traditional reliance on building and towards being a more active funds manager and developer. We remain on track to meet our more than $8bn completion target in fiscal 2024, along with the return on in vested capital target for the development segment of 10-13 per cent, Mr Lombardo said. The company expects its return on invested capital from its investments unit to be 6-7.5 per cent this financial year. Lendleases core operating profit after tax was $276m for the financial year to June 30. The bottom line plunged to a $99m loss, from a $222m profit the year before, as it was hit by writedowns of $333m and $42m of losses in areas which it has sold or is exiting. Revenue slumped 8.5 per cent to $9.3bn. It will pay a final distribution of 11c per security. p r o p e r t y Ben Wilmot e n e r gy Perry Williams m a r k e t s Matt Bell BOTTOM LINE 2022 FINANCIAL YEAR 29.6% Adairs net profit fell to $44.89m 11%Nick Scali net profit fell to $74.92m 4.5% The Shaver Shop net profit fell to $16.69m Source: company reports

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