The Seven Group Holdings Ltd (ASX: SVW) share price rocketed 12.21% higher to $19.02 per share today, following a strong half-year earnings result.
It was a mixed day on the ASX, with the S&P/ASX200 Index (ASX: XJO) closing down 0.2% to 6,096.5 points despite the likes of A2 Milk Company Ltd (ASX: A2M) and Corporate Travel Management Ltd (ASX: CTD) shooting 10.53% and 14.69% higher, respectively.
What was so good about Seven Group's half-year result?
On an underlying basis, revenue from ordinary activities increased 45% to $2.03 billion from continuing operations while NPAT from continuing operations (excluding significant items) was up 61% to $256.8 million.
Management maintained its interim dividend at 21 cents per share (cps) which is franked to 100%. The company also reported net tangible asset backing per ordinary share of $3.70, up sharply from $2.00 per share in 1H18.
Management stated that the pivots within the group's industrial services and energy businesses have delivered for the group in the half, which saw underlying Group EBIT rise 68% to $375 million in the half.
The balance sheet remains robust for the group, with total assets up marginally to $6.18 billion in the latest results while net assets also increased slightly to $2.88 billion.
Seven Group's cash flow profile is also strong with the company reporting net operating cash flows of $231.9 million, despite cash and cash equivalents falling 80% to $76.7 million in 1H19.
Foolish takeaway
The Seven Group share price is up 38.13% year-to-date and despite some headwinds, most notably the impairment of its Seven West Media Ltd (ASX: SWM) equity holding, the underlying results look strong.
In another positive for Seven Group, Beach Energy Ltd (ASX: BPT) rose 1.01% to $1.995 per share today, boosting the equity value of the company's 70% indirect stake in Beach.
For those not sold on Seven's prospects over the next 6-12 months, Fools can check out these top growth shares that have been tipped as market beaters.
