2013 will be remembered as a breakout year in the minds of those who rode out the GFC. Four to five years on and the US market is moving ahead, and what seemed to be almost daily updates on what European country was supposed to default are a thing of the past. China is not as wobbly as many expected, and if China's not buying up coal and iron, then Chinese investors are picking up real estate here with gusto.
The S&P ASX 100 Index (ASX: ^XTO) had many strong winners for 2013, but right at the top were the following companies.
Henderson Group (ASX: HGG) +101% ($4.17).
The UK-based fund management company had NPAT in 2013 of $155.4 million, way up from the $51.4 million after heavy abnormal charges in 2012. Last year's NPAT was back in line with previous years.
Arrium (ASX: ARI) +92% ($1.76).
Changing its name from Onesteel in June 2012, the steelmaker wrote-down assets of over $1 billion in 2013, although NPAT before abnormals was $1.15 billion, the highest since 2004. Its iron ore mining operations even hit a record 3.13 million tonnes of ore shipped in the September quarter, enjoying the higher spot iron ore prices.
Seek (ASX: SEK) +88% ($13.17).
The leading online classifieds jobs' portal raised its NPAT before abnormals from $109.2 million to $152.7 million in 2013. It moved to expand its international advertising business by taking a majority interest in Zhaopin, the Chinese employment website, which it plans to have an IPO for.
Challenger (ASX: CGF) +74% ($6.17).
Is a fund manager geared towards annuities and guaranteed retirement income solutions. It reported a record $353 million NPAT in 2013. It is expanding more into the SMSF business, acquiring Bendzulla Actuarial, the leading provider of SMSF actuarial certificates in Australia.
Flight Centre (ASX: FLT) +74% ($47.12).
Continuing its run-up in share price since June 2012 when it was around $17.80, the company has been aggressively marketing its online travel business, while beefing up its bricks-and-mortar shop fronts. It has benefited from a higher Aussie dollar that gives travelers more purchasing power while overseas. NPAT was up to $246 million in 2013 from $200 million in 2012.
Foolish takeaway
2014 is revealing a number of opportunities for investors. Will these performers be at the top in a year's time? I think consumer discretionary spending and housing related stocks hold strong possibilities with the improving economy. Also, the superannuation industry will benefit from a larger percentage of income being channeled into employee super funds, as well as the burgeoning SMSF sub-industry that is gaining popularity.
