Reporting Season Round Up: Here’s why this ASX stock grew its post-tax profit by 441%
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Once again it was a case of small caps impressing more than large caps, with property services Millennium Services (ASX:MIL) the best performer. But another ASX stock saw it’s post tax profit grow 441%.
Millennium has a market cap of just over $25 million and provides property cleaning, maintenance and security services to varying properties including shopping centres, universities and office buildings.
The company recorded far from the highest revenue and profit gains but CEO, Scott Alomes, lauded the results as “very impressive” in light of the challenging environment and shareholders concurred sending shares up over 10%.
Its revenue grew by 7% to $275.5 million and its gross profit rose by 34% to $40.8 million.
In recent months some of its contracts were lost or reduced in light of COVID restrictions, but other new clients were bought onboard, particularly in WA and New Zealand.
SCP’s share price was little-changes following its result. But being an ASX REIT (a property owner) it benefited from broader strength in the property market, which resulted in its post tax profit rising 441%.
The company said the $354.2 million of the increase was “primarily due to an increase in the fair value of investment properties”.
Its other metrics were more modest with its portfolio occupancy at 97.4% – a slight dip from 12 months ago – and its funds from operations were $159 million, up 13%.
Although its earnings copped a $7.3 million hit from factors directly linked to COVID-19, this was lower than the $20.5 million hit in FY20.
Fellow property manager and investor Dexus only grew its profit by 17%, but it came in at a healthy $1.138 billion.
The company also credited its increase in investments, and a favourable movement in derivatives and foreign currency interest bearing liabilities.
It also commented on the so-called shift to “flexible working” in light of COVID which has potential to hit its office occupancy levels.
“It’s clear that workplace flexibility is here to stay, but to different degrees depending on the organisation,” said executive general manager Kevin George.
“Our business is well placed to accomodate workplace flexibility as it relates to physical space through our flexible product offering.”
This company is named after its flagship real estate classified site but also owns Australian Property Monitor and its own home loans outlet.
Domain increased its post tax profit by 66% to $34.3 million although its revenue only grew 10.7% to $289.6 million.
The company mentioned the confidence in the property market as one of the reasons for its performance, and it said it remained confident in the resilience of the market even with the restrictions in Sydney.
The kitchen appliance seller was yet another retailer to benefit from locked down people spicing up their homes.
The company’s revenue grew 24.7% to $1.187 billion and its net profit by 42.3% to $91 million, and it credited work from home conditions as well as geographic expansion.