Astute investors do not put all their eggs in one basket. While having some growth stocks and a few for passive income alone, they assign some growth plus dividend stocks also to their portfolio. Some of such growing companies to invest in are
Objective Corporation Limited (ASX: OCL)
Objective Corporation Limited has secured its first UK customer for Objective RegWorks, signing a significant $3.4 million, six-year contract with the Gambling Commission of Great Britain. This milestone marks a major expansion into the UK market and underscores the growing international presence of OCL’s regulatory solutions.
OCL has reported impressive financial results for FY24, highlighting robust growth across key metrics. Revenue increased by 6% to $117.5 million, up from $110.4 million in FY23. The company saw a remarkable 66% rise in adjusted EBITDA, reaching $44.3 million. Net Profit After Tax (NPAT) grew by 49%, totalling $31.3 million, compared to $21.1 million the previous year.
Operating cash flow saw a substantial improvement, climbing to $55.8 million from $23.4 million. Cash reserves grew by 32% to $96 million. Earnings per share (EPS) were up 43% to 32.9 cents, and dividends increased by 26% to 17 cents per share.
These results reflect OCL’s strong financial health and successful investments in research and development, positioning the company well for continued growth.
OCL is expanding its addressable market through strategic product innovation and entry into new geographies. The company recently secured its first contract for Objective RegWorks, a significant $3.4 million, six-year agreement with the Gambling Commission in Great Britain. Additionally, OCL is making notable progress with new customers using Objective 3Sixty in The Americas and, more recently, in the UK.
Aligned with its long-term growth strategy, OCL has invested 30% of its software revenue generated in FY24 into its global SaaS business. The incorporation of AI into OCL's products further enhances their capabilities, while the use of a comprehensive design language across all products ensures a pixel-perfect, consistent, and highly engaging user experience.
OCL is among High Growth Stocks that exemplify with a long-term vision and robust growth prospects. Its impressive year-on-year increase in recurring revenue and successful transition to a 100% subscription software model, with 81% of revenue now recurring, highlight its strategic focus on sustainable growth.
Bega Cheese Limited (ASX: BGA)
Bega Cheese Limited’s FY24 performance has been a period of significant rebound in operational and financial performance for BGA. The company underwent certain developments which were responsible for this performance.
Organizational Realignment: Streamlining the company's structure and optimizing operations contributed to enhanced efficiency and productivity. This realignment allowed for better resource management and decision-making.
Completion of Tasmania Acquisition Integration: Successfully integrating the Tasmania acquisition improved operational synergies and expanded the company's capabilities, bolstering overall performance.
Capacity Rationalization: Further rationalization of capacity helped in reducing operational redundancies and focusing resources on the most profitable and strategic areas, driving cost savings and efficiency.
Solid Cash Flow Generation: Strong cash flow generation provided the financial flexibility needed to support ongoing operations, reduce debt, and invest in growth initiatives.
Robust Balance Sheet: A strengthened balance sheet, characterized by reduced net debt and improved leverage ratios, underpinned financial stability and allowed for a more resilient operational framework.
Improved Planning Process: Enhanced planning and forecasting processes led to more accurate and effective operational strategies, supporting better financial and operational outcomes.
For the fiscal year ending 30 June 2024, BGA reported a remarkable turnaround, reflecting substantial improvements in productivity and operational efficiency.
Revenue rose by 4% to $3,521.6 million, up from $3,376 million in FY23. EBITDA increased by 15% to $165.1 million, compared to $144.1 million the previous year. The company turned around its EBIT performance, moving from a loss of $233.7 million in FY23 to a positive EBIT of $74.3 million in FY24. Group profit after tax (PAT) also saw a significant recovery, reaching $30.5 million from a loss of $229.9 million. Earnings per share (EPS) improved markedly to 10 cents, reversing the negative EPS of 85.6 cents in FY23, with a 2% increase on a normalized basis. Additionally, net debt was reduced by 20% to $162.4 million, and the leverage ratio fell to 1.3x. The company declared a final fully franked dividend of 4.0 cents per share, totalling 8.0 cents per share for the year, which amounts to $24.4 million.
In FY24, Bega Cheese Limited significantly improved its cash flow from operations, which surged from $8.2 million in FY23 to $134.3 million. This substantial increase reflects the company's enhanced operational efficiency and effective management of working capital, contributing to its overall strong financial performance for the year.
Bega Cheese Limited stands out with its diversified portfolio of leading brands and robust operational capabilities.
Source: Company’s Report
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