Tuesday 01 March 2016 by FIIG Research Company updates

Company updates – Barminco, BHP, Cash Converters, Dicker Data, Fortescue and Sunland

Barminco half year earnings increased by 10.6%, S&P affirms BHP Billiton’s investment grade credit rating, Cash Converters posts solid 1H16, Dicker Data meets $1bn revenue target, Fortescue reports with positive future guidance and Sunland meets expectations for half year

Barminco’s half year earnings increase by 10.6%

Published 24 February 2016

Last week, Barminco released its half year results. Earnings increased by 10.6% before interest, tax, depreciation and amortisation (EBITDA) on the prior corresponding period. The company has also reduced the bonds outstanding through a further buy back but financial leverage continues to remain very high. Read more  

BHP off CreditWatch with rating affirmed by S&P

Published 1 March 2016

S&P has taken BHP Billiton off CreditWatch negative and the company’s ‘A’ rating has been affirmed. As part of its 1H16 result, the company announced a change to its dividend policy to link dividends more closely to market conditions and operating performance. The change in policy materially increases the company’s financial flexibility. Read more 

Cash Converters posts solid 1H16 and announces credit positive restructure

Published 29 February 2016

Cash Converters (CCV) has posted solid 1H16 results with strong performance across all channels of its core Australian business. A six month strategic review has been completed with CCV to exit its underperforming and loss making UK and Carboodle divisions.

Further to the good result, CCV’s recent announcement of replacement financing and banking facilities has removed a key risk to the business. Read more

Dicker Data meets $1bn revenue target

Published 29 February 2016

Dicker Data has posted FY15 figures in line with guidance, recording significant growth driven by the major acquisition of Express Data as well as in the underlying business. Efficiency continues to improve as represented by improved margins which are stronger than major competitors in the region – a key strength for a high volume, low margin business. Read more

Fortescue is moving from ‘survive’ to ‘thrive’

Published 25 February 2016

Fortescue’s 1H16 results were more interesting for the guidance that the company provided, rather than the half year performance itself. The company provided guidance for a USD28.80 per tonne breakeven price by the end of FY16, which represents continued improvement on its cost position. We look at what this means for the company and the bonds going forward in the full article.

Sunland is performing as expected and reconfirmed its FY16 guidance

Published 25 February 2016

Sunland has posted its half yearly results. The group is performing in line with expectations and has reconfirmed its FY16 NPAT guidance of $25-29m. Gearing is currently rising primarily due to the Abian high rise project development. However this is as expected and the project is now fully sold. Net tangible assets, while weakening remain at a healthy $340.3m. Read more