Easton share price is charging higher today by after reporting an increase of 98% in its year-on-year profits.
The post Easton Investments (ASX:EAS) share price up 8%, hits 52-week high appeared first on The Motley Fool Australia. –
Easton Investments Ltd (ASX: EAS) shares are charging higher today after the company reported an increase in its year-on-year profits. At the time of writing, the Easton share price has surged 7.89% higher to reach a new, 52-week high of $1.23.
Why has the Easton share price surged today?
The Easton share price is charging higher after the company announced its year-on-year profit has increased by 98% to $3.51 million, in the five months to 30 November. This figure is up from $1.77 million in the prior corresponding period.
Easton Investments, which owns GPS Wealth, Merit Wealth and The SMSF Expert, further reported that its Wealth Solutions division had seen a 55% rise in profits from $850,000 in 2019, to $1.31 million in the five months to 30 November this year.
Its Accounting Solutions division meanwhile, returned $2.12 million in profits for the five-month period, compared with $1.43 million at the same time last year
“Both of the company’s operating divisions, Accounting Solutions and Wealth Solutions, have reported strong revenue and earnings growth over the period, while corporate costs have remained flat,” the company said.
Despite the upbeat news, Easton remained cautious about providing a full, half-year forecast. The company advised that its final half-year results will be impacted by one-off costs associated with the proposed transaction with HUB24 Ltd (ASX: HUB).
In October, HUB24 agreed to purchase new shares in Easton Investments, while divesting its subsidiary, Paragrem, and giving the ownership to Easton.
That agreement will effectively see HUB24 become a 40% shareholder in Easton, with the combined company set to become one of Australia’s leading providers of services to accountants and financial advisers.
Easton says it expects to be in a position over the coming days to provide an update on the HUB24 transaction.
The company has also today declared a special dividend of 5 cents per share, fully franked, to be paid on 21 January 2021.
About the Easton share price
The Easton share price has increased by over 40% since the HUB24 announcement was made in October. On a year-to-date basis, Easton shares have gained around 30%, today reaching a new 52-week high.
The company commands a market capitalisation of $39 million.
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Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.