The ASX 200 (ASX: XJO) is currently up 0.3% as the ASX follows on from another positive day with overseas markets.
Afterpay (ASX:APT) UK growth impresses
The Afterpay share price is up more than 2% to $60 after the company announced some news about its UK subsidiary, Clearpay.
Afterpay said that there are now more than 1 million active shoppers in the UK using the service after a year.
Another interesting element about the update was that the UK customer purchasing frequency in the UK is outpacing the US when it was at the same stage of the lifecycle. UK customers have transacted more than eight times within the first year compared to six times in the US.
Afterpay boasted that Clearpay is one of the fastest growing ecommerce payment companies in the European market.
In the UK there is more than 1,100 brands and retailers offering, or in the process of offering, Clearpay to their customers. Some of the brands now using Clearpay include ASOS, Marks and Spencer, JD Sports, Urban Outfitters and Boohoo.
CSR (ASX: CSR) AGM
CSR is holding its AGM today. As part of the presentation the management released a trading update for FY21.
For the first 11 weeks of FY21, building products revenue in Australia is down 3%. Including the impact of New Zealand COVID-19 restrictions, revenue is down 5%. Management were expecting a slowdown in activity, projects started before COVID-19 continue to support revenue.
However, current lead indicators are pointing negative. New home sales in Australia during April and May are down 19% compared to last year. There is a lag in demand for CSR’s products. However, the announced government stimulus measures should be a benefit, though the timing and extent of the benefit is uncertain.
Sonic (ASX: SHL) trading update
Sonic withdrew its FY20 earnings guidance three months ago due to COVID-19 uncertainty. The lockdowns caused a large fall in patient volumes and revenue.
However, the company has seen revenue stabilise in late April with a recovery during May. In recent weeks the majority of the company has returned to pre-COVID volumes and revenue.
However, base revenue in the US, the UK, Ireland and Belgium are still below pre-COVID levels but there is a positive trend there. Many of Sonic’s businesses also involved with substantial COVID-19 testing.
March 2020 and April 2020 trading results were substantially lower than forecast, but May was stronger than expected – this trend has continued through June to date.
In FY19 Sonic generated statutory EBITDA (click here to learn what EBITDA is) of $1.075 billion. Sonic’s FY20 underlying EBITDA is expected to be a similar amount, excluding the impact of the new lease accounting standard AASB 16.
However, there is still too much uncertainty to provide FY21 guidance. It will provide another update in August 2020 with the release of the FY20 result.