The ASX 200 (ASX: XJO) has fallen by more than 1% at lunch.
Famous investors in the US has said shares seem expensive and the risk reward balance doesn’t look very attractive. China is continuing to build pressure on Australia by threatening commodity exports.
Here are some of the headlines from the ASX 200:
Xero (ASX: XRO) reports
In the FY20 report the cloud accounting software company announced 30% growth of operating revenue to $718.2 million. Annualised monthly recurring revenue (AMMR) increased by 29% to $820.6 million. Total subscribers rose by 26% to 2.285 million.
Average revenue per user increased by 2% to $29.93. The gross margin percentage increased by another 1.6% to 85.2%, up from 83.6% last year. EBITDA excluding impairments jumped by 52% to $139.2 million. EBITDA increased by 88% to $137.7 million.
Net profit went from a loss of $27.1 million last year to a profit of $3.3 million this year. Free cash flow climbed 320% to $27.1 million.
Business trading in early FY21 has been impacted by COVID-19. Xero was unable to provide any guidance. It’s still aiming to be a long term focused, high growth business while being disciplined with costs and targeting allocation of capital.
The Xero share price is down almost 4%.
Breville (ASX: BRG) rockets
The Breville share price is currently up more than 10.5%.
Breville achieved 32% revenue growth from 1 January 2020 to 30 April 2020. Growth in March and April was 25% and 21% respectively. Breville has implemented “prudent, tactical actions” to manage costs and cashflows. Breville has managed to find $5 million a month in cash savings so far.
At 30 April 2020 it had net cash of $10 million with cash on hand of $74 million.
Breville also announced it was undertaking a fully underwritten $94 million institutional placement and a $10 million underwritten share purchase plan. The capital raising price is $17, which was a 9.1% discount to the last closing price of $18.70.
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Disclosure: Jaz does not own shares of any of the shares mentioned at the time of writing.
