2016 SYDNEY TOP LISTED COMPANIES 31-40
Written on the 25 November 2016 by Lin Evlin, Paris Faint, Chelsey Landford, Nick Nichols & James Perkins
THIS is your access to the definitive list of Sydney's Top Listed Companies, compiled by the editorial team at Business News Australia.
This is the first of what will be an annual list of companies that are some of the heavyweights of Australia's business scene.
The top 31-40 includes retailer Harvey Norman, superannuation behemoth Challenger and the secretive TPG Telecom.
CHANGES to superannuation rules were introduced into the Federal Parliament in November, to the acclaim of providers such as Challenger.
"Challenger continues to target a normalised return on equity of 18 per cent pre-tax and expects to maintain a fully franked dividend payout ratio of 45 per cent to 50 per cent of normalised profit, subject to prevailing market conditions."
32. TPG Telecom
DESPITE resoundingly positive results for TPG this FY16, investors punished the company following the downgrade of its 2017 forecast and shares plummeted 21 per cent. The growth forecast for FY17 is 7 per cent, the lowest forecast in seven years.
33. Duet Group
DUET Group posted a 153.5 per cent jump in post-tax profits to $195.2 million in FY16, driven by its acquisition of Energy Developments Ltd (EDL) in October 2015.
34. Harvey Norman Holdings
HARVEY Norman celebrated a profit bonanza in FY16 on the back of Australia's housing boom, but the head offices' arrangements with its franchisees have been publicly called into question.
The furniture and electrical retailer delivered a full-year profit of $348.61 million, up 30 per cent from FY15 and well ahead of analysts' optimistic forecasts of $320 million.
BORAL has moved to get a piece of Donald Trump's mooted US infrastructure spending by acquiring NASDAQ-listed Headwaters Incorporated for US$2.6 billion.
36. Spark Infrastructure Services
SPARK Infrastructure has blamed its interests in the South Australian and Victorian Power Networks for a 9.4 per cent slip in underlying CY16 interim profits to $127.2 million.
37. Magellan Financial Group
MAGELLAN enjoyed a steady ride through 2016, citing scalability and a consistent business approach as the main catalyst for its growth.
This was reflected in the company's solid FY16 results, where it reported a 14 per cent increased net profit after tax of $198.4 million and a 13.5 per cent rise in earnings per share.
The global investment manager also declared that its total funds under management at the end of the financial year stood at $40.5 billion, up 11 per cent from FY15.
Hamish Douglass, Magellan CEO and chief investment officer, credits yet another good year to careful execution of company strategy.
"We are particularly pleased with the deepening penetration of our global equities and global listed infrastructure strategies with Australian retail investors, advisers and brokers," says Douglass.
"Magellan now manages $12 billion on behalf of retail investors in Australia and New Zealand and attracted net retail inflows of $2.3 billion during the year."
The company launched a replica version of its infrastructure fund on the Colonial First State platform in May 2016, and maintained solid support from its institutional clients throughout the year with net inflows from that segment totalling $1.8 billion.
38. Washington H Soul Pattinson
WASHINGTON H Soul Pattinson (WHSP) performed well despite its New Hope investment dragging on earnings in FY16. With an improvement in coal prices seen early in FY17, expect the company to perform even better this year.
39. Evolution Mining
EVOLUTION Mining's financial results were as good as gold in FY16 - its underlying profit soared by 114 per cent to a record $226.9 million and its sales revenue doubled to $1.328 billion. The gold mining company also produced a record 803,476 ounces of gold, an 85 per cent increase year-on-year.
The company's solid showing was driven by record production, a strong focus on cost controls as well as a favourable Australian-dollar gold pricing, which increased by around 14 per cent from the previous year.
The gold producer also began to reap the rewards of its acquisition of the Cowal mine located in NSW, and the Mungari mine located in Western Australia which occurred in August 2015. Together, these mines contributed more than $600 million to the company's revenue.
Evolution Mining has also acquired an $880 million stake in Glencore Australia's Ernest Henry copper-gold mine in Queensland. To help fund the deal, the company completed a $401 million accelerated retail entitlement offer.
Evolution Mining was formed in late 2011 through the merger of Catalpa Resources, Conquest Mining and the concurrent acquisition of Newcrest Mining's interests in two Queensland mines.
40. BT Investment Management
FUNDS manager BT Investment Management is putting its focus squarely on searching for and attracting top investment talent as the company posted a 33 per cent increase in cash profits to $88.6 million for the half year to 31 March, 2016.
The company recorded a 32 per cent rise in earnings per share and a 6 per cent rise in interim dividends to 18c per share despite grappling with volatile share markets.
CEO Emilio Gonzalez believes that the resilient results reflect the business' globally diversified business across geographies, channels and products which was helped along by higher fees thanks to the improved performance from its JO Hambro funds management arm as well as favourable currency movements.
BT Management is looking to add skilled funds managers with proven investment pedigree as it seeks to continue expanding its business overseas.
While the company is domiciled in Australia, 75 per cent of its revenue is already from overseas including the United Kingdom.
Author: Lin Evlin, Paris Faint, Chelsey Landford, Nick Nichols & James Perkins