Dashboard containing:

• Monthly and annual share price movements for main listed enterprise ICT stocks
• Key earnings multiples
• Forward earnings multiples vs forward growth estimates
• Share price movements tracked over last twelve months

Commentary

Key developments

Most enterprise ICT stocks in Australia and New Zealand are down over the last year, though some stronger full year results buoyed certain stocks. Overall, economic growth is expected to be sluggish relative to 2022, creating uncertain performance for enterprise ICT equities. Some of these companies are growing through acquisition rather than organically, and are exposed to a downturn.

Webcentral

Webcentral’s stock fell 13% in November, cooling off the stock’s meteoric rise in October after the company announced plans to sell off its web and email hosting businesses for $165 million to a European investment group led by Oakley Capital. The Chairman provided an update in November stating that the transaction is expected to complete by 20th December, with proceeds used to fund acquisitions and potential share buy backs and dividends.

Data#3

Data#3’s stock had a strong November rising over 10% after the company released guidance for FY24 on the 31st of October. The company expects a FY24 pre-tax profit in the range of $27-29 million exceeding FY23’s result of $24.6 million.

Comms Group

Comms Group’s stock fell nearly 16% in November despite any price sensitive announcements by the company. The microcap is prone to extreme volatility given its small market capitalisation of around $22m.

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