Shares in Melbourne-based services group and caterer, Spotless Group jumped more than 10% yesterday after the company confirmed that its full year earnings would meet market estimates, despite mixed operating outcomes for its various businesses.
The shares rose 23 cents to $2.46, a rise of 10.3% and the highest they have been since March of this year.
Spotless said in an update to the ASX that it expected earnings before interest and tax of $94.1 million for the year ended June 30, and earnings per share of 20.8 cents, prior to non-recurring items.
This was consistent with "the average of market consensus estimates", Spotless said.
Spotless said the contribution of its garment hanger and packaging solutions business, Braiform, would be above the top end of the range of market estimates of between $900,000 and $4 million.
"For Braiform, the better result reflects the continuing improvement in the Braiform business despite continued global retail market softness," the company said in Monday’s statement.
But the contribution from its Facility Services division would be "slightly below" the lower end of market estimates, ranging from $88.5 million to $95.8 million.
The company said that looking to the current year it was optimistic of an improvement.
"While Spotless will provide more comprehensive commentary on the outlook for its businesses upon the release of its full year accounts in August, the Facility Services performance will be positively impacted in 2010 (over and above normal business activity) by:
- Government stimulus maintenance work in schools and public housing in several states that is ramping up during the first half
- Contributions from the bolt on acquisitions finalised towards the end of the 2009, and
- Participation in the ceiling insulation component of the Federal Government’s Economic Stimulus Plan. Spotless is Bunnings’ exclusive installer of insulation under the program which offers eligible home owners government funded ceiling insulation capped at $1600.
- In terms of recent major customer developments, the South Australian Government has awarded a $320m Public Private Partnership contract to the Pinnacle Education consortium, which includes Spotless as facility manager and operator. Spotless will maintain six newly constructed schools over a 30 year period, with the first school to commence operation in 2010."
Spotless reports its full audited results on August 25.
News of significant board changes yesterday at building materials supplier Boral Ltd, saw the shares jump by around 4.5% to $5.13, up 22 cents on the day.
The company revealed that current board member Bob Every will become chairman incumbent Ken Moss retires in May, 2010.
Boral said Dr Every, who has been on the company’s board since late 2007, would become deputy chairman in the meantime.
Dr Moss will retire next May, after supervising the transition to a new chief executive officer at the end of 2009.
(He plans also to step down at GPT about the same time).
Dr Moss would seek reelection to the Boral board at the company’s annual general meeting on October 28 and "assuming he is re-elected, Dr Moss intends to remain as Chairman until May 2010," Boral said.
Another Boral director, John Cloney (QBE Chairman), will not seek re-election at the 2009 Annual General Meeting in October, the company said.
The company’s long time CEO, Rod Pearse, plans to step down later this year.
And shares in Queensland coal group, Macarthur Coal Co, fell 2.3% yesterday after producing what appears to be a reasonably sold 2009 production report.
The shares ended down 18 cents at $7.54, which was a bit better than the 46 cent fall in mid session trading, to $7.26
The company, which is the world’s biggest exporter of pulverized coal, said fourth-quarter sales rose 21% to a record on increased demand.
Sales jumped to 1.48 million tonnes in the June quarter compared with 1.23 million tons a year earlier.
"A combination of steel markets stabilising, the destocking phase at steel mills ending, and the emergence of new markets for metallurgical coal, has led to a more positive outlook for the metallurgical coal market over the next few months.
"Macarthur Coal is observing an improvement in shipping requests from its traditional customers seeking coal for delivery in the second half of the calendar year,” the statement said.
“While these signs are encouraging, Macarthur Coal will continue to monitor ongoing demand from all of its customers to assess whether the improved outlook for coal markets is sustainable.”
Coal shipments for the year were up 17% overall to 4.61 million tonnes, the company told the ASX.
The 2009 figure was "within the forecasted sales target of 4.5Mt to 4.8Mt provided on 18 June and exceeding the earlier forecasted sales target of 3.9Mt by 0.7Mt," directors said.
The company said the 4th quarter "records were made possible by an increase in spot sales, including thermal coal, to nontraditional customers.
"Thermal coal sales in the quarter were
