Half Yearlies: More people want home loans and Resimac is seeing the $$ roll in
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On the third day in a row our markets have fallen over 1 per cent there were few half yearlies that excited investors. But mortgage lender Resimac (ASX:RMC) led the charge.
Shares in the company gained another 7 per cent, placing them over 200 per cent higher than a year earlier when the market was in a downturn and the Royal Commission threatened to shake up the industry.
Net interest income was up too, by 53 per cent, from $55.1m to $84.3m.
The company credited 20 per cent growth in its home loan portfolio as consumers searched for alternatives to the big four banks. But it said it was targeting more growth.
“The Australian housing market remains resilient with a strong rebound over the last six months,” CEO Scott McWilliam said.
“Whilst Resimac recorded its highest settlements in 1H20, we represent less than 2 per cent of the home loan market. A huge opportunity exists to grow market share via our third party and digital direct channels”.
The annual report that disappointed shareholders the most was Traffic Technologies (ASX:TTI) which retreated by more than 23 per cent. A net profit after tax of $1.6m swung to a $12.4m loss due to an impairment. Revenue fell too, slipping from $25m to $21.9m.
Independent maintenance labour service Mader Group (ASX:MAD) admitted its profit was slightly below expectations. But it was still $8.7m and 9.3 per cent higher than the prior corresponding period. Revenue and earnings were, however, ahead of expectations and Made reaffirmed its full-year prospectus forecasts.
Jewellery retail chain Michael Hill (ASX:MHJ) made a $21.4m net profit after tax, up 19.6 per cent from the prior corresponding period. The company said it was in a strong financial position despite a challenging retail environment.