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RECAP: News and analysis from ASX companies reporting earnings season results today

The West Australian
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NRW Holdings and MACA have entered trading halts just minutes apart.
Camera IconNRW Holdings and MACA have entered trading halts just minutes apart. Credit: NRW Holdings

Thanks for joining us for another day of earning reports. Here’s your quick wrap up if you missed it.

Construction and mining group NRW Holdings approached fellow contractor MACA with a proposal to rival Thiess’ $350 million all-cash offer, but it was a “no thanks”, with MACA rebuffing the bid.

NRW had earlier in the day tipped a modest profit increase for the 2022-23 financial year.

Insurance giant Medibank’s profit tumbled almost 11 per cent to $393.9m on the back of volatility in financial markets, and Evolution Mining’s profit plummeted 22 per cent lower than the previous year. It said costs increased due to a mix of acquisitions, increased activities and higher input costs.

Origin Energy reported a statutory loss of $1.429 billion on the back of “an almost unparalleled year”.

Treasury Wine Estates warned of headwinds from ongoing inflationary cost pressures as well as global supply chain risks, reporting earnings before interest and taxes of $523.7m in the 12 months to June 30 – down from $510.3m a year earlier.

WA’s labour market tightened yet again, with the State’s unemployment rate now 3.2 per cent, down from 3.4 per cent in June.

Links to the biggest stories of the day are in the Key Event feed just below.

Join us again on Friday when Newcrest Mining reports its earnings, along with Inghams Group, AGL Energy, and Stockland.

The ASX closed down 14.9 points, or 0.21 per cent, Thursday at 7112.80.

But it’s a ‘no thanks’ from MACA

NRW Holdings has confirmed it has lobbed a higher counter bid but MACA has rebuffed it.

The disclosure followed both companies entering a trading halt on Thursday, as we reported earlier, on speculation of NRW’s approach.

NRW’s non-binding indicative offer is higher that the agreed bid for MACA by Thiess.

More to come, but here’s what we know so far ...

It’s on! NRW makes its move

CONFIRMED: NRW has revealed it has approached fellow contractor MACA with a proposal to rival Thiess’ $350 million all-cash offer.

More to come, standby ...

Adrian Lowe

Myer agitator Lew back for next round

Retail king Solomon Lew’s march on department store Myer is continuing in earnest, pushing for a vote to appoint one of his key lieutenants to the department store’s board.

Representatives for Premier — whose brands also include Smiggle, Portmans, Dotti and Peter Alexander — have not responded to calls from The West Australian.

Thursday’s announcement follows notice earlier this month that two Lew entities, Metalgrove and Century Plaza, had acquired a combined 24.5 million Myer shares, pushing voting power up to 22.87 per cent from 19.88 per cent.

Myer has been under siege for years from Premier and Mr Lew, who has repeatedly criticised Myer’s performance and the direction of the company.

Read the full story here ...

Sezzle looks to be in black by year’s end

US buy now, pay later player Sezzle says cost-cutting initiatives will help the business become profitable and free cashflow positive by the end of 2022.

In a market update release to the ASX on Thursday, Sezzle said it reduced cash burn, defined as total transaction income minus related costs and adjusted operating expenses, to $US1.8 million ($2.6m) as of July 31.

Sezzle reported underlying merchant sales for July increased 9.5 per cent month-on-month to $US141.2m, with total income growing 4 per cent month-on-month to $US10.2m.

Read the full story here ...

MACA, NRW Holdings in trading halts amid bid rumours

Mining contractors NRW Holdings and MACA have entered trading halts just minutes apart.

The pause comes amid speculation that NRW could look to lob a competitng offer for fellow contractor MACA, which late last month agreed a $350m all-cash takeover bid from Queensland-based Thiess.

But there has been talk NRW has been eyeing up a competing offer.

Earlier on Thursday, NRW tipped a modest profit increase for the 2022-23 financial year on the assumption on ongoing labour shortages and supply chain issues.

The company said net profit for the completed year to June 30 jumped to $97.4 million from $54.3m, including a 30.1 per cent rise in earnings before interest, tax and amortisation to $157m.

“In providing this forecast, we have assumed that projects will still be subject to current resource and supply chain pressures, although we expect this to ease through the year,” NRW said.

Revenue is seen rising from $2.4 billion to between $2.6b and $2.7b.

NRW shares were up 6.3 per cent to $2.38 just before the trading halt was called.

Here’s how the MACA and Thiess deal came about in late July ...

Evolution Mining sees inflation easing, but not in WA

Inflation is at last easing across Evolution Mining but the gold miner has warned that WA remains a costs outlier.

Announcing an expected fall in full-year profit that was impacted by rampant inflation, Evolution executive chairman Jake Klein said costs for the likes of energy, oil and steel had started to come off in recent weeks.

Further improvement would likely see Evolution better the costs guidance provided in its June production downgrade given those numbers assumed higher expenses.

Evolution chief financial officer Lawrie Conway said on Thursday that while operating costs had improved noticeably over the past 6-7 weeks, construction costs still varied by region and remained high in WA.

Read more here:

Is that the far-off jingle bells of a Santa rally?

Commodities have broadly pulled back from their recent peaks, but Wall Street analysts say the fundamentals are pointing to another rally by year-end.

Are they right?

You can read more from our friends at CNBC here.

Adrian Lowe

WA pay gap well above national average

WA men are the highest earners in the country — but the spoils don’t extend to women, who are earning less than their counterparts in NSW and the ACT, new data shows.

Men in WA are marginally better paid each week than those in the ACT — $2103 compared to $2099.60 — but WA women earn on average $1631.30, about $230 less than in the ACT and $20 less than in NSW.

Read the full story ...

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