Azzet reports on three stocks with price-moving updates today.
Iress rallies on new CEO appointment
Shares in Iress (ASX: IRE) were up 6.4% by 1:50 pm AEST (3:50 am GMT) after the large-cap fintech company told the market that former Bravura Solutions boss Andrew Russell will replace Marcus Price as CEO, a move that analysts appear to have given the thumbs up.
With Price exiting immediately, Iress’ CEO Global Trading & Market Data, Geoff Rogers, will take over the reins as acting CEO until Russell takes up the position on 17 November.
Having been with the company since 2022, Russell is credited with delivering a pivotal turnaround project for Iress, sharpening our focus, divesting non-core businesses and restoring the balance sheet.
While Russell will be charged with resetting and refocussing the business after successfully completing its transformation program, he will also have to contend with the possibility of renewed M&A interest given the board’s willingness to explore a possible buyout.
“…my focus will be to capitalise on the strong position Iress finds itself in following the strategic transformation program the Board and management team have led over the past two years,” Russell told the market.
While U.S.-based global private equity firm Blackstone previously made a $10.50 per share bid for the business, it was subsequently withdrawn.
To put that bid in context, Swedish global investment organisation, EQT made a $15.91 offer for the company in 2021 that was also subsequently withdrawn after carrying out due diligence.
While the company recently completed the transformation of its business, that’s expected to lead to higher returns, falling revenues and earnings may put a lid on how much future suitors are willing to pay for the business.
Iress’ interim revenues fell 3% to $299.5 million, while profit was flat at $17.3 million.
However, excluding the divisions it had sold through the year, revenues were 6.8% higher at $249.4 million, while the company’s underlying measure of profit showed a 19.5% increase to $31.2 million.
Following the interim result, Price told the market that Iress is well-placed to capitalise on global growth opportunities, leveraging our core capabilities while selectively investing in new … technologies.”
Meanwhile, E&P Capital told clients that Russell’s appointment was positive for the stock.
The broker values the company at $10.01, compared with the current share price of $8.95.
“We see this update as a positive given Mr Russell is very well regarded by small cap investors,” the broker noted.
“He delivered a very solid outcome at Class where he expanded the total addressable market (Class had been seen as ex growth prior to him joining) by buying into the document management space and extracted a significant premium in a scrip transaction with HUB24.”
While the broker flagged concerns that a new CEO may rebase earnings, it reminded investors that his recent track record suggests he will be able to find new growth opportunities and further optimise profitability at Iress.
While the Iress share price has recovered somewhat from the $4.99 a share slump late October 2023, it's still substantially lower than the $15.10 it was trading at in August 2021.
Iress has a market cap of $1.6 billion; the share price is up 12% in the last month.
The stock’s shares appear to be in a near-term uptrend, confirmed by its 20-day moving average.
Consensus is Moderate Buy.
Provaris Energy rallies after flagging plans to scale hydrogen shipping
Shares in Provaris Energy (ASX: PV1), formerly Global Energy Ventures, were up over 5.9% after the Hydrogen and carbon dioxide storage technology specialist signed a formal Collaboration Agreement with global technology company Baker Hughes to advance compressed hydrogen transport and storage solutions.
The partnership is understood to replace a 2024 agreement and outlines a framework for advancing hydrogen export and import projects across Europe, with a shared commitment to enabling scalable, efficient infrastructure for the regional supply of hydrogen.
Analysts expect Europe to require 7 million tonnes of low-carbon hydrogen, with Germany planning to import up to 70% of its supply.
Both companies will refine cost modelling, equipment selection, and engineering concepts to establish scalable hydrogen supply chains.
Key elements of the agreement include:
- Provaris will identify and qualify hydrogen project opportunities where Baker Hughes’ compression equipment and engineering services can be applied.
- Baker Hughes will provide technical support for equipment selection, plant layout, and cost modelling.
- The parties will continue to refine the Compression Concept Design Paper and collaborate on project-specific engineering inputs.
Provaris and Baker Hughes are already cooperating on hydrogen export opportunities identified in the Nordic region to define equipment and engineering services for Baker Hughes, underscoring the commercial potential of this collaboration.
Commenting on today’s update, Per Roed, chief technology officer at Provaris Energy told the market that the collaboration strengthens its ability to deliver scalable, efficient hydrogen transport and storage solutions.
“We are excited to work with Baker Hughes to showcase the benefits of compression using their equipment. The outcomes are already clear, and we look forward to our co-operation to continue to develop regional supply chains for hydrogen using Provaris carriers”.
Today’s update follows a $1.08 million capital raise in July to support the company’s continued expansion into Europe.
The company posted a loss in its most recent financial year of $6.1 million and a latest trailing-twelve-month loss of $3.7 million, shrinking the gap between loss and breakeven.
Provaris Energy has a market cap of $15 million; the share price is down 21% in one year and up 5% year to date.
While the medium-term picture appears bullish, with the 5-day moving average above the 50-day moving average, other indications are mixed.
Consensus does not cover this stock.
Boom Logistics falls after accusing former CEO of misappropriating $1 million
Shares in Boom Logistics (ASX: BOL) were trading 4.1% lower after the lifting solutions and crane rental small-cap revealed that former CEO Ben Pieyre had misused his company credit card and funds to the tune of up to $1 million.
Pieyre’s resignation in July coincided with initial internal inquiries into his personal use of company funds.
Internal investigations by the ASX found evidence that Pieyre was engaging in personal and unauthorised use of company credit cards and company funds, which ultimately led to his termination as CEO on 17 July.
To ensure a smooth transition, Boom’s director of operations, Lester Fernandez, has assumed the role of Interim CEO.
“At this stage, and subject to these further investigations, it appears that the amount of the misuse was less than $1 million of which the company has recovered $246,720,” Boom said today.
Boom reminded investors that the above amount is historical and does not impact Boom's cash bank or its future cash flows.
It also appears that the misuse related to purchases by Pieyre of personal items and services for himself and others was not associated with Boom's provision of services to customers or suppliers.
It’s understood that Boom’s FY25 results reflect the success of Pieyre’s strategies, notably cost controls and fleet rejuvenation, positioning the company to capitalise on growth in renewables and infrastructure sectors.
These efforts helped to mitigate risks from commodity price fluctuations in the resources market, a key challenge for logistics firms.
A Tier 1 contractor, Boom is the only publicly listed crane company in Australia and has become a trusted partner in delivering safe and efficient mine shutdowns and construction projects.
On July 17, the day of Pieyre’s announced termination, shares closed at $1.3550 and were trading this afternoon at $1.30.
Last month, the company refinanced its $57.5 million syndicated debt facility.
The company declared a FY25 statutory net profit of $23.3 million includes $14 million of deferred tax benefits.
Net capex for FY25 was $25.2 million (24% less than FY24), including $9.9 million of asset disposal proceeds on the back of our asset renewal program.
In FY26, Boom plans to grow its earnings per share by implementing its strategic goals and maintaining strong demand and tender activity across all key segments.
Boom Logistics has a market cap of $53 million; the share price is down 7% in one year.
The stock appears to have completed a medium-term rally that took the 5-day moving average above the 50-day moving average and will likely continue its bearish trend. The 20-day moving average is downward.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
