FlexiGroup Limited
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FXL Details
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Solid volumes and receivables growth: FlexiGroup Limited (ASX: FXL) stock made a smart rally of 7.5% on August 30, 2016 as the group came out with solid performance for fiscal year of 2016. The group’s volumes and receivables rose over 19% year on year (yoy) and 47% yoy respectively, which drove the cash NPAT to reach over $97.0 million, meeting the guidance. FXL delivered a portfolio income growth of 16% yoy to $396.4 million against the same period of last year. The group’s Cards business performed well and even got a major contract signed with Flight Centre. The group is expanding its network and even added new merchant partners to its 20,000 strong store network. Accordingly, FXL cash flow from operating activities rose 22% yoy to $147.4 million against FY15 and estimates their FY17 cash NPAT from core businesses in the range of $90 million - $97 million, after growth investments. On the other hand, FXL stock fell over 23% this year to date as they came out with weak results for the prior period. However, the latest results confirm the stock’s ability to recover in the coming months.
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Recommendation: We give a “Speculative Buy” on the stock at the current price of $2.44
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FXL cash NPAT performance (Source: Company Reports)
Skydive the Beach Group Ltd
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SKB Details
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Rise in bookings and Jumps: Skydive the Beach Group Ltd (ASX: SKB) stock surged over 6.1% on August 30, 2016 as the group’s bookings rose greater than 123% (yoy) in FY16 as compared to FY15. In fact, SKB came out with better than estimated revenues, and reported over $ 58.5 million as compared to the forecasted revenue of $ 54.9 million. The group’s Tandem jumps surged 126% on a yoy basis in fiscal year of 2016 as compared to the same period of last year driven by the better bookings and higher processing rates. On the other side, SKB finished the capital raising for $19.6 million and got good response from investors. The group also finished acquisition of NZone Skydive as well as Skydive Wanaka and improved their operational efficiencies.
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Recommendation:We recommend investors to “Hold” at the current price of $0.61, while the stock is trading close to its 52-week high price.
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Delivered better than estimated results (Source: Company Reports)
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