ALS Ltd
Australia
Industrials
ALS Limited is a commercial services company with national and international operations. The Company's services include analytical and testing services, producing industrial and commercial chemical products, and hospitality, cleaning, and catering products.
AUB Group Ltd
Australia
Financials
AUB Group Limited provides financial services. The Company offers equity-based risk management, insurance broking, and specialist underwriting agencies, as well as focuses on risk solutions for clients and strengthening our partners risk advisory capabilities.
carsales.com Ltd
Australia
Communication Services
carsales.com Ltd owns and operates a portfolio of automotive and related industry websites, including an automotive classifieds website.
EQT Holdings Ltd
Australia
Financials
Equity Holdings Limited provides personal trust and financial services to customers in Australia. Services include will and estate planning, trustee for settlements, financial guardian, investment and property management and fund investments. Other services provided by the company include income tax services, short term share trading and mortgage loans and investments.
Hansen Technologies Ltd
Australia
Information Technology
Hansen Technologies Limited develops, supports and integrates billing systems software for the telecommunications and utilities sectors in Australia. The Company also provides IT outsourcing services such as facilities management and develops software and services for workforce management.
Lifestyle Communities Ltd
Australia
Real Estate
Lifestyle Communities Ltd Limited provides resort style housing for individuals in their fifties and older.
nib holdings Ltd
Australia
Australia
NIB Holdings Ltd. offers health insurance products. Depending on the specific product, the Company covers ambulance costs; and reimburses for costs not covered by Medicare including dental, optical, physiotherapy and natural therapies; and some hospitalization costs.
Propel Funeral Partners Ltd
Australia
Consumer Discretionary
Propel Funeral Partners Limited provides funeral services. The Company owns and operates funeral homes, cemeteries, crematoria, and related assets, as well as offers funeral, cremation, burial, and mortuary services. Propel Funeral Partners serves individuals and families in Australia and New Zealand.
Seven Group Holdings Ltd
Australia
Industrials
Seven Group Holdings Ltd. is a diversified operating and investment group. The Groups interests include media holdings that include Seven Network, a commercial television network and publishing company, a telecommunications company, and a heavy equipment dealer that operates Caterpillar dealerships in Australia and North Eastern China.
Webjet Ltd
Australia
Consumer Discretionary
Webjet Limited is engaged in a digital travel business in global consumer markets and wholesales markets. The Company offers travel shopping and reservation services to clients as an online travel agency (OTA) in Australia and New Zealand. Webjet also provides B2B business to wholesale players by helping them fulfill accommodation requirements for their consumers.
COMMENTARY
Global markets faded in August driven by concerns over the Chinese economy and fears the Federal Reserve might hold rates high for longer than feared. The US market fell 1.7%, while the Australian market showed a 1.4% decline. The A$ was down 4% on concerns over the Chinese growth outlook, which also saw copper prices fall 5%. The local share market was dominated by profit season, with most of our companies reporting solid numbers and outlook commentary. We have been busy meeting management teams and were generally pleased with performance in this critical month.
Our positive contributors in August included:
Carsales (+16%) posted solid results with profit growth of 43% and a robust outlook for growth in all four regions the company operates in. AUB Group (+8%) upgraded earnings again, with the market taking comfort from the especially strong performance in the recently acquired UK operations. Aussie Broadband (+30%) revealed 51% profit growth and an improved outlook for the current financial year. Healthia (+76%), which is a very small position for us, received a takeover offer from a private equity group at a significant premium. Seven Group (+7%) posted 18% profit growth driven by consistently strong outcomes from Westrac and Coates Hire.
Our negative contributors in August included:
Webjet (-11%) held its AGM which showed a continuation of the impressive growth reported in May, however after a 14% rally in July, the stock retraced, perhaps suggesting some short term hope of a profit upgrade that did not occur. IVE Group (-9%) drifted after revealing mild slippage in the earnings from the recently acquired Ovato operations. Kelsian (-9%) drifted following a profit result somewhat hamstrung by the ongoing shortage of bus drivers in Australia. Pinnacle Investments (-9%) underperformed a slightly weak market given the earnings leverage to asset prices. Australian Clinical Labs (-9%) revealed a lighter than expected profit outcome due to rising costs.