ASX 200 rises, Altium up, Woolworths votes on demerger

The ASX 200 went up today. The Altium share price rose after an update.
The post ASX 200 rises, Altium up, Woolworths votes on demerger appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) went up 0.1% today to 7,369 points.

Here are some of the highlights from the ASX:

Altium Limited (ASX: ALU)

The Altium share price rose more than 3% today after giving investors a trading update and telling shareholders about its long-term vision.

Altium said that its revenue for FY21 is anticipated to be at the low end of the guidance range of US$190 million to US$195 million. The earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be at the low end of the guidance range of between 37% to 39% on an underlying basis (this excludes acquisition costs and the write-back of Solidworks mini contractual amount due to termination).

The ASX 200 software business said that China is delivering a solid performance after coming back from COVID earlier than the rest of the world. Management said that renewals are strong and Octopart is on track for a record performance. A continued increase for term based licenses is also being observed.

Altium said that the adoption of the Altium 365 cloud platform has increased and there are now more than 13,100 monthly active users and over 6,300 monthly active accounts.

Aram Mirkazemi, the CEO of Altium, said:

Electronics sit at the heart of all intelligent systems, and Altium software and services provide the unique bridges that connect electronic design to the electronics supply chain and the manufacturing of electronics products. With the strong early adoption of our cloud platform, we are evolving from our PCB design origins and are now playing an essential and growing role in the design and making smart products, that spans manufacturability, productivity, research and influence, and component sourcing.

Altium expects that by 2025, recurring revenue will grow from 60% today to 80% or higher.

RPMGlobal Holdings Ltd (ASX: RUL)

The RPMGlobal share price is up around 7% after the release of a software subscription update.

It said that the software subscriptions total contracted value (TCV) has increased beyond $40 million in this financial year, having now sold $40.4 million in the year to date, which was an increase of $9 million from $31.4 million reported by RPMGlobal on 4 May 2021.

The company also said that RPM’s current annual recurring revenue (ARR) from software subscriptions has lifted to $21.5 million.

Woolworths Group Ltd (ASX: WOW)

Woolworths held a meeting today for shareholders to vote on whether to approve the Endeavour Group demerger. The vote passed with more than 98% of shareholders voting for the proposal.

Endeavour Group includes the drinks businesses of Woolworths, including Dan Murphy’s.

The Woolworths leadership said that the business will remain an ASX 20 share. It will have a simpler and more agile operating model which will enable it to grow its food and everyday needs retail ecosystem.

Woolworths also said that Endeavour will be well positioned for success. It will have a broad mandate for growth, be able to pursue its business strategy with flexibility to invest in its best returning opportunities and respond to changing consumer behaviours and industry conditions.

The ASX 200 supermarket business also gave a response to the Fair Work Ombudsman’s Federal Court proceedings regarding underpayments of award-covered salaried managers.

It said that it’s reviewing the proceedings and pointed out that the remediation process to date has involved extensive calculations, assessment and review.

The ASX share share said to date more than $370 million has been paid to current and former salaried team members across the Woolworths Group, with work continuing to remediate affected team members.

Woolworths CEO Brad Banducci said:

Since 2019, our highest priority has been, and continues to be, addressing the issue of underpayments for our team, and to ensure that it doesn’t happen again.

We welcome the opportunity for further clarity from the court process on the correct interpretations of the relevant provisions.

The post ASX 200 rises, Altium up, Woolworths votes on demerger appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and RPMGlobal Holdings. The Motley Fool Australia owns shares of and has recommended Altium and Woolworths Limited. The Motley Fool Australia has recommended RPMGlobal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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