The ASX 200 (ASX: XJO) is down 0.4% at lunch after initially being up first thing in the morning.
The Australia Bureau of Statistics has said the unemployment rose from 7.1% to 7.4% in June. That was the bad news. The good news is that there were 211,000 jobs added. Full-time employment decreased 38,100 to 8,489,100 people and part-time employment increased 249,000 to 3,839,400 people.
BWX (ASX: BWX) to do a capital raising
Natural beauty business has released most of its (unaudited) FY20 financial numbers and it also announced a capital raising.
The natural beauty business announced that its FY20 revenue has grown by 25% to $187.6 million. Looking at the individual brands, Sukin revenue rose 55%, Andalou Naturals revenue went up 10%, Mineral Fusion revenue went up 16% and Nourished Life revenue increased 15%.
BWX’s EBITDA (click here to learn what EBITDA means) was $30.9 million, including the AASB 16 accounting change. Excluding AASB 16, EBITDA was $27.5 million, up 30% compared to last year. The gross margin improved by 2% compared to last year, increasing to 58%.
The net profit after tax increased by 48% to $14.1 million.
Its balance sheet position was net debt of $32 million at 30 June 2020.
BWX is going to raise $50 million, with $33.7 million to fund the construction of a new manufacturing facility and support office which is expected to be completed in December 2021. It’s expected to add to earnings per share (EPS) from FY23.
There will be a fully underwritten institutional placement of $40 million, with a $10 million share purchase plan for regular retail investors.
The capital raising price will be $3.40, being a 7.1% discount to yesterday’s closing share price.
The new facility is expected to be able to produce bigger volumes in the future and enhance margins. It’s expected to improve quality and consistency of products. The new facility will enhance control over the end to end supply chain and it will reduce material waste by around 50%.
BWX shares are currently in a halt.
Pointsbet (ASX: PBH) wins again
The Pointsbet share price is up 1.4%.
The gambling business announced that it has been issued a temporary operating permit by the Illinois Gaming Board.
This approval allows Pointsbet to commence retail and online sports betting operations in Illinois as long as partner Hawthorne Race Course receives a ‘Master Sports Wagering Licence’.
On 28 June 2019 the Governor of Illinois signed sports betting legislation into law. Since then Pointsbet and HRC have been working in tandem towards building a “world-class, multi-faceted sports entertainment venue” centrally located at the Hawthorne Race Course, together with several off track betting outlets throughout the Greater Chicago Area.
At the top end of the ASX 200, IOOF (ASX: IFL) shares are up 6.2% and Breville (ASX: BRG) shares are down 5.7%.