Teamtalk Exceeds Forecast With Solid Result

Teamtalk Exceeds Forecast With Solid Result

Listed mobile radio firm TeamTalk Ltd announced a $3.11 million full year net profit today, up 2.8% on last years $3.01 million result. The result also exceeds the company’s earlier guidance of $3.0 million.

TeamTalk will pay a final dividend of 10c per share, taking the fully imputed dividend to a healthy 19c per share, up 1c on last year. The company expects to increase its dividend to 20cps fully imputed for the 2007 year.

Managing Director David Ware said the company continues to generate strong cash flows. This strong cash flow enabled the company to reduce net debt by $1.7 million to $4.9 million, while paying dividends of $3.6 million.

Looking to the future the company is taking a cautious approach. Mr Ware anticipates that 2007 will be a more difficult year as the overall economy tightens and uncertainty remains around the Telecommunications regulatory environment.

“So while our NSAT is likely to be below the 2006 result, the forecast 20cps dividend represents less than 60% of free cash-flow,” Mr Ware said.

ENDS

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