Pinned straw:
Adding further info to my comment on why the share price fell. I won't worry about drawing the graph as the numbers show the trend well enough.
My last comment mentioned margins fell, but it was only minor about 2% 2H2022 versus 2H2023
However of most concern is the revenue growth. It was only 4% from end of 1H2023 to 2H2023 versus 16% from end of 1H2022 to 2H2022.
Also earnings between 1H2023 and 2H2023 was only 5% growth versus 22% growth between 1H2022 to 2H2022
In summary it seems both revenue and growth stalled from the beginning of the 1st half to the end of June 2023 down to single digits.
The market reacted as expected, even though the numbers looked good,because the growth from previous period was not as much as opposed to the corresponding period. I think market wanted consistent double digit growth but unless I did something wrong above, it looks like growth is becoming marginal.
[held]
jcmleng
@edgescape, thanks for your table showing the HY-on HY comparison. It helped explain what seemed to be to a strange market reaction to another sterling set of XRF results.
The numbers do indeed show 2HFY23 revenue growth of 4% vs 1HFY23. But 1HFY23's revenue growth of 26% vs 2HFY22 seems abnormal vs the "normal" revenue growth of prior half's of between 9% to 16%.
The proportion of revenue growth across both half's (just applying simple math, proportion of each half's growth/total % growth across the half's):
FY21: 57% 1H vs 43% 2H
FY22: 45% 1H vs 55% 2H
FY23: 86% 1H vs 14% 2H
Rather than this being a 2HFY23 growth stalled situation, it looks more like a timing difference issue where the growth occured mostly in 1HFY23 instead of being spread across both half's as in FY21 and FY22. Not only that, XRF then grew that already significant revenue jump from 1HFY23 by a further 4% in 2HFY23, to arrive at FY23's results where revenue was up 38% YoY.
Not sure if my logic above is correct, but it feels irrational that the market penalises XRF for 38% YoY revenue growth because of this timing difference ...
Discl: I topped up IRL this week ...