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Business Description: Cabcharge Australia Limited (CAB) is a diversified Australian technology, financial services, taxi payments and passenger land transport Company. It also develops and manufactures in-taxi equipment through its associate company; ComfortDelgro Cabcharge Pty Ltd. CAB also provides bus and coach services to customers predominantly in Australia.
Strategy Analysis: Cabcharge hopes to maintain a dominant position in the taxi industry through ownership of a state of the art, information and technology network. The network is used primarily for electronic settlements and as a comprehensive payment management tool. Maintenance of leading edge technology means helps CAB defend its position against new entrants to the taxi payments system. National growth initiatives include the planned growth in taxi plate licenses by state governments. This will have a direct impact on the potential number of Cabcharge transactions as the result of an increased number of taxis on the roads. Fares are increased periodically as the State Governments review fares to allow for movements in fuel and other costs. Merchant fees may possibly be negotiated and a general switch by consumers from cash to credit transactions works in favour of CAB operations. CAB is expanding its presence in the UK market through a joint venture arrangement. The UK expansion is still in its infancy and earnings performance has been poor given the weak economic environment. The CDC bus joint venture has seen increased patronage as economic stress pushes more passengers onto buses and services are expanded, particularly in high growth regions. There is the risk that CDC loses Region 4 through NSW government tender, but we think CDC is in a strong position to retain them, albeit at tighter margins.
Cabcharge Australia reported NPAT up 28.5% to $33.34m for the half-year ended 31 December 2012. Revenues from ordinary activities were $99.77m, up 1.2% from the same period last year. Basic and Diluted EPS was 27.7 cents compared to 21.5 cents last year. Net operating cash flow was $29.35m compared to $27.94m last year. The interim dividend declared was 18.0 cents compared with 17.0 cents last year.
By Michael McCarthy (chief market strategist, CMC Markets) 19/12/2014 |
Traders and investors caught short heading into the FOMC scrambled for cover in Europe and the US, in many cases driving indices to their best one day performance for 2015.
By Betty Lam (Sales Trader, CMC Markets) 18/12/2014 |
Lead by the Fed-fervour offshore, Australians shares jumped on the Yellen cheer wagon. The material and energy stocks were back in vogue as both sectors gained over 3% in morning trade.
By Michael McCarthy (chief market strategist, CMC Markets) 18/12/2014 |
In spite of a frenzied pre-mortem, a benign statement from the US Federal Reserve‚Äôs Open Market Committee and steadying commodity markets drove investors back into share markets overnight. A calmer, stronger ruble helped offset European growth fears, highlighted in the overnight session by further declines in inflation.
By Betty Lam (Sales Trader, CMC Markets) 11/12/2014 |
Offshore jitters sent ripples through to Australian stocks. The open saw the local equities take 65 points off the index, catalysed by a mass-exit in energy stocks, yet again.
By Ric Spooner (Chief Market Analyst, CMC Markets) 10/12/2014 |
Yesterday‚Äôs news on Greek politics and China‚Äôs bond market came at a time when US and European stock markets have extended rallies and pushed valuations higher. This makes those markets vulnerable to downward corrections as profit takers act to avoid missing out.
BR Securities Australia Pty Ltd 2/12/2014 |
December 2014 could go down as a nasty moment in Australian finance. MYEFO will reveal a deteriorating budget deficit and the UNFCCC meeting in Lima, Peru will provide the agreement, to be ratified in Paris in 2015, on how much (or little) CO2 is to be allowed into the atmosphere from 2020.
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