Tuesday 23 February 2016 by FIIG Research Company updates

Company updates galore – News and reports from eight companies including BlueScope, Coffey, Qantas and others

Ansett Aviation Training successful in bid for Jetstar contract, BlueScope releases results and strong 2H16 guidance, Coffey to redeem floating rate notes, McPherson’s sells Homewares joint venture, Newcastle Coal Infrastructure Group on review for downgrade, NEXTDC reports first net profit in 1H16, PMP’s credit profile continues to improve and Qantas records a record profit

Ansett Aviation Training – Commercial and trading update

Published 22 February 2016

FIIG Research met with Ansett Aviation Training (AAT) to obtain an update on the business. The good news is that AAT has won the Jetstar contract tender and the contract is expected to rollover to a new 7 year fixed fee arrangement from March 2017. The revised Jetstar contract is expected to result in an 8%-8.5% reduction in forecast earnings per annum once the new contract commences, however overall we believe the retention of the Jetstar contract is positive for AAT and ensures it retains its strong competitive position in the domestic aviation training market.

Other updates and our conclusion on the key developments for the company are included in the full article 

BlueScope delivers in 1H16 and provides strong 2H16 guidance

Published 22 February 2016

BlueScope has released its half yearly results to the market and provided strong 2H16 guidance. The results were highlighted by stronger earnings off flat revenue growth, offset by an increase in leverage resulting from the North Star acquisition. The company expects leverage to reduce over the next 12-18 months through operating cashflow generation.

BlueScope has also provided guidance that 2H16 underlying EBIT will be up to 60% above the prior corresponding period (AUD131m) which translates to a guided 2H16 EBIT of AUD210m or roughly 9% below 1H16. Read more

Coffey Corporate – Notice of passing of special resolution and early redemption

Published 22 February 2016

Coffey Corporate (Coffey) has confirmed that, ‘the special resolution proposed in the notice of Circulating Resolution and Explanatory Memorandum dated 3 February 2016 was passed by the Noteholders on 17 February 2016.’ This means that the company will redeem the notes early, on 2 March 2016 at 105% together with any accrued interest. Noteholders should have received direct communication confirming all the details.  Please contact you dealer for further information.

Has Moody’s overreacted on Newcastle Coal Infrastructure Group?

Published 22 February 2016

Newcastle Coal Infrastructure Group (NCIG) was recently placed on review for downgrade by Moody’s as part of its widespread review on coal infrastructure assets. Read more (for wholesale investors only; requires login). 

McPherson's posts a solid result and confirms $20m debt reduction

Published 23 February 2016

McPherson’s has posted a good result for 1H16 and confirmed the sale of the Housewares JV which will reduce debt by an estimated $20m and improve the group’s credit profile.  However, the company has stated that it is no longer in negotiation to sell the Household Consumables/Multix division which would have materially reduced currency risks. Read more  

NEXTDC records first net profit on strong revenue growth

Published 18 February 2016 

NEXTDC has recorded its first net profit in 1H16 with revenue up 51% to $42.1m.  After two rounds of fund raising in 1H16, the group has a strong balance sheet with significant liquidity and is net cash positive. We believe the company is well placed to execute its expansion and construction of new datacenters. Read more 

PMP’s credit profile continues to improve

Published 22 February 2016

Despite operating in a challenging and declining industry, PMP’s credit profile continues to improve as the group executes its agenda of being net debt free. PMP state that trading conditions remain challenging with mixed signals in the Australian retail sector. However, industry demand for catalogues remains stable. The group has also affirmed its full year guidance provided at its AGM. Read more 

Qantas delivers a record $921m underlying profit in 1H16

Qantas has delivered a very strong result for 1H16, highlighted by a record underlying profit, improved credit metrics and asset coverage, as well as strong liquidity and cash flow generation.

Investors who bought the bonds at the low point would have earned impressive returns. Current yields available range from 4.29%pa for the bond maturing in 2020 to 4.81%pa for the 2022 bond. Read more