Image source: Shutterstock

Highlights:

  • AQZ rises 8% YoY as Alliance Aviation announces USD 62.3 million engine sale to reduce net debt.
  • CGS upgrades FY25 outlook with profit before tax expected to grow up to 97% YoY.
  • CKF shares climb 19% after FY25 earnings beat analyst forecasts despite profit decline.

In afternoon trading on the Australian Securities Exchange (ASX), the S&P/ASX 200 Index (ASX: XJO) was up 1%, reaching 8,560.3 points. Among the standout gainers were Alliance Aviation Services Ltd (ASX:AQZ), Cogstate Ltd (ASX:CGS), and Collins Foods Ltd (ASX:CKF), each moving higher on distinct operational updates and financial developments.

Alliance Aviation Services Ltd (ASX:AQZ) provides aviation and charter services to the mining, energy, and government sectors across Australia. It also operates wet-lease and aircraft sales services and maintains a fleet of Fokker and Embraer aircraft.

The shares of Alliance Aviation climbed 8% YoY to AUD 2.33 during the trading session on Tuesday following the announcement of a binding sale and purchase agreement with Beautech Power Systems. The agreement involves the sale of 12 General Electric CF34-10 aircraft engines for a total consideration of approximately AUD 62.3 million. The final amount remains subject to standard delivery condition and currency exchange adjustments. The company emphasised that this transaction will materially improve its balance sheet position by enabling a significant reduction in net debt.

Cogstate Ltd (ASX:CGS) develops digital cognitive assessment tools used in pharmaceutical trials, clinical settings, and academic research. It focuses on the detection of neurological diseases, including Alzheimer's, and operates globally with strategic partnerships in the healthcare sector.

The company’s shares surged nearly 10% YoY to AUD 1.48 after the company issued a positive trading update for FY25. The neuroscience technology company now expects revenue between USD 52 million and USD 54 million, reflecting 20% to 24% growth compared to the previous year. More notably, profit before tax is forecast between USD 12 million and USD 14 million, a significant 69% to 97% improvement over FY24. The update follows a stronger-than-anticipated close to the financial year, driven by demand for its cognitive assessment technologies used in clinical trials and health research.

Collins Foods Ltd (ASX:CKF) is a restaurant operator and franchisee, best known for managing KFC outlets across Australia and Europe. It also holds development rights for Taco Bell in Australia and operates under a franchise model with Yum! Brands.

The company saw its share price jump 19% YoY to AUD 8.64 following the release of its FY25 full-year results. The company, which operates KFC and Taco Bell restaurants in Australia and parts of Europe, reported revenue of AUD 1.52 billion, representing a 2.1% increase year-on-year.

While underlying net profit after tax fell 14.8% YoY to AUD 51.1 million, the result still exceeded market expectations, particularly those from Macquarie, which had forecast AUD 44.3 million. Investors also responded positively to the company’s FY26 outlook, which targets low to mid-teens percentage growth in underlying NPAT.