NPAT fell by 5 per cent over the prior year to $91.3 million. While lending segment earnings grew strongly, the impact was offset by continued run-off in the core AU/NZ debt buying business and costs arising from increased US resourcing.
Conclusion:
FY23 earnings were 5% lower on FY22, as rising wage costs and lower labour productivity more than offset a 15% growth in revenue. Nonetheless, the results were in line with consensus expectations. However, management's FY24 earnings guidance is ~10% below consensus expectation.
Share price reaction down ~ 11% ...Good for ones looking to purchase some more.
Reducing Exposure: Voting power back to 7.60%
6 signs you should sell | Wilson Asset Management
- Large investors exit
A shareholder owning more than 5% of a company must notify the market if they cease being a substantial shareholder.* We closely watch substantial shareholder notices announced on the ASX to identify if large investors are entering or exiting a company. When one of these large investors announces it is no longer a substantial shareholder, it may indicate they are planning to completely exit their holding. As large positions can take many weeks (or even months) to unwind, this may put downward pressure on the company’s share price in the short-term.
While we can only make inferences from substantial shareholder announcements, they can provide valuable insights which may feed into our investment decisions. Investors should note that when large shareholders announce they are no longer a substantial shareholder, they may only be temporarily exiting, or modestly reducing, their holding in the company.
For example, fund managers of open-ended investment vehicles may be forced to sell some of their shares in order to fund redemptions.
As previously advised, the DOCA includes the transfer of all shares of CLH to Credit Corp (or its nominee), subject to the Deed Administrators obtaining an order from the Court pursuant to section 444GA of the Corporations Act 2001 (Cth) (“444GA Order
