AU Morning Wrap: ASX Falls, Weighed by Banks; Appen Sinks 18%

The major U.S. stock indexes slipped Tuesday as investors awaited key inflation data and worries about the U.S. debt ceiling loomed over markets.

Appen plunged 18 per cent to $2.59 after warning that it expects revenue to decline materially in FY23 compared to FY22.

CSR dropped 1.8 per cent to $5.37 following its full-year result. Mayne Pharma fell 5.8 per cent to $3.87 after announcing a share buyback.

Redbubble edged 0.5 per cent higher to 41.7¢ after announcing further cost-reduction measures to accelerate its return to cash flow positive.

This includes a contribution in the range of $4.5 million to $5 million from the company's recently acquired Asset Care business for the four month period of March 1 to June 30 this year.

The buyback will be funded from Mayne Pharma's current cash reserves.

The company said it intended to maintain a conservative balance sheet following completion of the buyback and would continue to assess the merits of this capital management plan as market conditions evolve.

The group is aiming to reduce its operating expenditure by a further $13 million to $15 million on an annualised basis. Most of the cost savings will be achieved by reducing the company’s workforce by about 23 per cent, or 75 roles.

Trading revenue of $2.6 billion was up 13 per cent, with earnings before interest and tax, before significant items, of $330 million, up 13 per cent.

For the fourth months ending April 30, the company reported revenue of $95.7 million, down 21.4 per cent on the same period last year. Gross profit was down 24.7 per cent to $35.8 million and the company reported an underlying EBITDA loss of $12.4 million.

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