Greencross Limited

GXL Details
· Continued network expansion: Greencross Limited (ASX: GXL) stock rose 4.4% on October 12, 2016. GXL reported a revenue growth of 14% to $733.7 million in FY 16 driven by growth in same store sales and network expansion. The EBITDA rose 38% to $87.1 million while underlying EBITDA increased by 12% to $97.5 million. But, the EBITDA growth was impacted due to a subdued level of vet acquisitions in the second half and challenging retail conditions in Western Australia. On the other hand, GXL had added 21 stores, 23 clinics (including 14 in-store clinics) and 14 grooming salons in FY 16. For FY 17, GXL intends to add 20 new stores in which 7 opened YTD, and 15 new in-store clinics in which 6 are under construction YTD. In addition, for FY 17, GXL expects the underlying EBITDA and NPAT growth to be at similar levels to FY16.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of  $ 6.83
 

FY16 Financial Performance (Source: Company Reports) 

Praemium Ltd

PPS Details
·         Highest Inflows for the September 2016 quarter: Praemium Ltd (ASX: PPS) stock rose 4.3% on October 12, 2016 after the company reported record inflows of $494 million for the September 2016 quarter. PPS has reported the quarterly inflows of £81 million ($140 million) for the international business and the quarterly inflows of $354 million for the Australian business. The international funds under administration (FUA) is now over £1 billion. Additionally, the Smart Investment Management assets grew 60% on last year to £288 million and the overall SMA FUA is now over $5 billion. Therefore, FUA has grown 35% in a year. The growth in the FUA during the September quarter is due to the asset inflows, positive equity market movements and generally improved trading conditions. In addition, there was accelerated rate of financial improvement across both the Australian and UK businesses.

·         Recommendation: PPS stock has risen 42.42% in the last three months as on October 11, 2016 and we reiterate our “Buy” recommendation on the stock at the current price of  $ 0.49

Gross Inflows, FUA and funds (Source: Company Reports)

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