In his most recent Chairman’s update, Alex Waislitz said overall, the stocks in the Thorney Opportunities (ASX:TOP) portfolio have continued to perform very well, meeting or exceeding market expectations.
Below are the listed investment company’s (LIC) five largest portfolio holdings, companies that all reported strong increases in revenue, earnings before interest and tax (EBIT) and earnings per share (EPS).
Service Stream Limited (ASX:SSM)
The Service Stream Limited share price has gained 20 per cent in the last 12 months, now trading at $1.77.
Service Stream is a S&P/ASX 300 company providing design, construction, installation and maintenance services across essential infrastructure networks within the Telecommunication and Utility sectors, including the NBN.
In August the company reported net profits and EPS increased 45 per cent. Service Stream increased its final fully franked dividend by 50 per cent, bringing total dividends for FY18 to 7.5 cents per share.
Looking forward, Service Stream anticipate earnings growth of at least 10 per cent in FY19. The shares trade on a price to earnings (P/E) ratio of around 16 times and a fully franked dividend yield of 4.2 per cent.
In July, The Capital Club named the company as one of the 5 best dividend shares to buy on the ASX in 2018.
AMA Group (ASX:AMA)
Another ASX 300 company, AMA Group is the Australian leader in the automotive aftercare and accessories market – vehicle repairs and panel beaters. It grows both by acquisition, and by partnering with insurers to open greenfield sites backed by a long-term contract.
In August, AMA reported revenue grew by 33 per cent, with EPS up almost 16 per cent. The AMA Group share price has gained 34 per cent over the past 12 months.
At $1.15, AMA shares trade on a P/E ratio of 25 times and fully franked dividend yield of 2.1 per cent. The company says its acquisitions pipeline is “enormous.”
Money3 Corporation (ASX:MNY)
Money3 is a national credit provider committed to servicing the needs of customers who cannot access funding from traditional lenders.
Secured car loans is its biggest and fastest growing product segment, representing over 80 per cent of the Money3 loan book. One out of 600 registered vehicles in Australia is financed by Money3.
In FY18, Money3 grew revenue by 11 per cent and EPS by a more modest 5.8 per cent. The full year fully franked dividend was 9.5 cents, up a whopping 68 per cent on the prior year.
The Money3 share price has risen 52 per cent in the past 12 months. At $2.20, Money3 shares trade on a P/E of 11 times and a fully franked dividend yield of 4.3 per cent.
OneVue Holdings (ASX:OVH)
OneVue describes itself as an emerging financial services company strongly leveraged to the superannuation sector. It is benefiting from legislated growth in the sector, and from structural disruption due to the shift to independent platforms and advisors.
In FY18, OneVue revenue grew 20 per cent with EBITDA up 67 per cent. At 74 cents, the OneVue share price has gained 25 per cent over the past 12 months. OneVue shares trade on a P/E of 27 times. The company does not pay a dividend.
Austin Engineering Limited (ASX:ANG)
Austin Engineering is a mining services company, manufacturing, assembling, repairing and maintaining products used in the mining and resources sector.
Last month, Austin said the 25 per cent revenue growth for FY17 was evidence its turnaround strategy is delivering.
Looking ahead, Austin said the outlook for capital expenditure among its client base is positive as projections for spending by the top five global mining companies indicate growth for the first time in four years. It is forecasting around 15 per cent earnings growth in FY19.
The Austin Engineering share price has only gained 2 per cent in the past 12 months. The Thorney Opportunities LIC is seeing opportunity in other mining services companies as resources companies have begun to ramp up their capex spend for projects and equipment. Other portfolio positions include MMA Offshore Limited (ASX:MRM) and Monadelphous Group Limited (ASX:MND).
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