Strong result sees Cabletalk pay maiden dividend
May 30, 2005
For Immediate Release
Strong result sees Cabletalk Group paying maiden dividend
Cabletalk Group, the listed telecommunications and technology company, is paying a fully imputed dividend of 3c per share. The company achieved a net tax-paid profit of $2.25 million for the year to March 31, 2005.
The result was after a tax provision of $1.1 million, which compares with the previous year when the company received a tax benefit of $0.20 million.
Pre-tax profit for the year at $3.39 million was double the previous year $1.68 million.
Financial highlights for the year were:
Net profit after tax $2.25
million (previous year $1.88 million).
Pre-tax profit $3.39 million (previous year $1.68 million).
EBITDA at $4.14 million up 47.3% (previous year $2.81 million)
Net cash flow from operating activities $4.3 million, cash balance at year end $4.8 million.
Earnings per share 7.1c (previous year 5.9c).
Shareholders’ equity $7.07 million (previous year $4.81 million).
Net asset backing per share 22c (previous year 17c).
Company chairman Ross Keenan says the result was an excellent one in terms of earnings growth, the strengthening of the company’s equity position and the improvements achieved in the efficiency of business operations.
“Over the course of the year we have made a number of strategic investments in the equipment and training needed to lift our productivity and this has been reflected in the level of margins we have been able to achieve from core business activities.
“The company is now well placed with a spread of earnings across key service areas emphasising rapid response call centre-based technology servicing operations.
“The result for the year has also validated management’s focus on completing commitments in respect of previous servicing contracts and in lifting the efficiency and standards of services under the Telstra Clear arrangements.
“Management is to be commended for delivering such strong results in this year of transition.”
Mr Keenan says extensive work and effort have been put into the company’s plans to expand through strategic acquisitions. Due diligence is nearing completion on one acquisition.
“As we have indicated our approach to acquisitions is to continue to seek businesses, which present the opportunity to deliver synergy benefits from the application of our proven installation and service delivery skills.”
He says the board is pleased to announce a fully-imputed dividend of 3c per share, payable on July 28 2005.
The Annual General Meeting of Cabletalk will be held in Auckland on Tuesday 26 July at which time a further update on the company’s development will be presented.
Ross B Keenan
On behalf of the Board