By Reuters Staff
2 Min Read
(Reuters) - Shares of Australia’s Tyro Payments Ltd plunged more than 12% on Friday after a short seller said the company had under-reported the extent of outages across its payments terminals over the past week.
Tyro on Wednesday said 30% of its 32,000 customers - the majority of which use a single terminal - were facing outages caused by a software issue, and that it was collecting 2,000 terminals a day to be repaired and returned.
Short seller Viceroy Research on Friday said it estimated around 50% of Tyro’s terminals are offline based on its “extensive” checks with an undisclosed number of Tyro customers.
Based on management accounts produced for the six months to 31 December 2020, the company expects to report revenue growth of 40% to $46.5 million in its upcoming report. The annual recurring revenue rose by 30% to $70.1 million. It also said that its research and development investment went up 45% to $11.1 million.
Earnings before interest, tax, depreciation and amortisation (EBITDA) went up 74% to $11.8 million and net profit after tax (NPAT) grew by 70% to $7.2 million.
The company said that its cash balance was $27.7 million at 31 December 2020.
Objective Corporation’s CEO, Tony Walls, commented on potential customer wins: “Engaging on some new customer opportunities proved more difficult than usual in the first half of FY21, but we expect the strong momentum demonstrated in the first half to continue for the full financial year.”
Top fund managers reveal 3 top ASX shares to buy for 2021
Tristan Harrison | January 14, 2021 9:33am |
More on: Image source: Getty Images
There was a huge amount of disruption in 2020 due to the COVID-19 pandemic.
These businesses have been identified by fundies as among the best opportunities for 2021:
Downer is the choice of fund manager Matthew Kidman from Centennial Asset Management.
The ASX share boasts that it has a history dating back over 150 years. It designs, builds and sustains assets, infrastructure and facilities and it’s the leading provider of integrated services in Australia and New Zealand.
Downer is currently in the process of restructuring its business and it’s selling assets. A recent sale was a mining business. Mr Kidman said that it’s selling its lumpy, heavy capital intensive components, and going into a much more capital-light service-based business with a lot of long-term government contracts.
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