More positive earnings updates yesterday.
TPG Telecom, formerly known as SP Telemedia, says it’s on track to achieve profit guidance, and is looking for a $70 million capital injection.
The company told the ASX yesterday unaudited results for the first five months of it fiscal 2010 year show it is on track to achieve its annual profit guidance.
According to the statement, unaudited net profit for the five months to December 31 was $22.5 million.
Its full year profit is forecast to be between $52 and $57 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the first five months was $65 million and full year EBITDA is forecast to be between $140 and $150 million.
Five month EBIT was $35.9 million, on track to achieve full year EBIT of $78 million to $86 million.
The earnings update came as the company revealed plans to raise around $70 million to help lower debts after the $350 million proposed acquisition of PIPE Networks Ltd.
PIPE Networks owns and operates internet exchanges across Australia.
TPG said the updated results "take no account of the impact of the proposed acquisition of PIPE Networks".
The capital raising will consist of a share placement by book build to sophisticated and professional investors and an offer to existing shareholders.
TPG shares have been placed in a trading halt ahead of the book build.
They last traded at $1.675 each on Monday.
FlexiGroup Ltd, the consumer finance group, says full year profit is likely to top earlier guidance.
The company said yesterday the upgrade was after a fall in bad debts, higher earnings and the positive impact of a tax ruling.
The shares jumped 12.5 cents, or 8.7%, to $1.55.
The company said that first half bad debts fell 3% on the same period of last financial year, while growth in core business net profit after tax (NPAT) for the half was up 30% at $19 million.
FlexiGroup said based on the first half, it expects full year NPAT to be in the range of $39 to $41 million, up from prior guidance of $37 to $39 million.
And, in addition to the profit upgrade, the company said it had received a positive tax ruling in relation to its December 2006 public offering.
The tax ruling is expected to add another $15 million to the 2010 full year NPAT and cash position, which will be used to retire debt.
"Strong volume growth with assets financed and transaction volumes increased by 44 per cent and 70 per cent respectively in 1H10 (2010 first half), primarily as a result of the contribution from Certegy and BLiNK Mobile Broadband," the company said in a statement.
"With the Australian economy improving, Australian lease volumes increased by 6 per cent, while New Zealand and Ireland lease volumes were down due to a more cautious approach to credit in those economies," it said.
And shares in nickel miner, Mincor Resources NL finished up 8.5%, or 12 cents, at $1.53 after the company produced an earnings upgrade yesterday.
The company told the ASX in a one page statement that net after tax profit will be around $14 million (based on pre-tax earnings of nearly $20 million and revenues of around $94 million).
"These figures are approximate, based on internal management accounts, and un-audited," the company said.
"This strong profit result compares to an after-tax loss of $22.7 million, on revenues of $100.4 million, for the previous corresponding period (the six months to December 31, 2008).
"The latter period was marked by the global financial crisis and a collapse in the nickel price, and Mincor’s financial statements also included the recognition of one-off non-cash impairment charges against certain of its mining assets.
"Mincor’s financial statements for the half year will be released to the ASX before the end of February, following completion of the half-yearly audit review. At that time shareholders will also be advised of the details of the interim dividend payment," the company added.
