Ferret's Stock to Watch: SAI GLOBAL LIMITED 08:50, Friday, 11 August 2006
A COMPANY KEEPING TRACK OF LOCAL STANDARDS FOR BUSINESS
Sydney - Friday - August 11: (RWE Aust Business News) *****************************************************
OVERVIEW ********
What better time to prepare the market for a significant parcel of shares coming out of escrow in a little over a week's time as SAI Global Ltd (ASX:SAI) announces an impressive profit result and lift in dividend for the year to June 30.
The disclosure was reported to the ASX on the same day as earnings figures.
A statement from the company said that on August 21 the following escrowed shares will be released from voluntary escrow in accordance with the provisions of Escrow Deed Polls dated May 19, 2005.
The number of shares were shown to be held by Clencourt Pty Ltd, holding 5,609,240 shares as trustee for the Schascas Unit Trust and Miminella Nominees Pty Ltd holding 3,999,040.
Yesterday SAI Global lifted net profit 20.7 per cent to $14.04 million in the year ended June 30 from $11.63 million.
Revenues rose 50.2 per cent to $160.21 million from $106.66 million and reported EBITDA rose 56.2 per cent to $30.06 million from $19.24 million.
Earnings per share were up 8.7 per cent at 12.5c while underlying cash EPS rose 36.2 per cent to 17.3c.
Final dividend has been increased from 5c to 5.4c, fully franked, payable on September 21 to shareholders registered on August 25 with an ex-dividend date of August 21.
Total payout for the year is 10.4c, up from 9.2c.
The dividend reinvestment plan will be available, with the shares to be purchased on market at no discount.
Chairman George Edwards said: "This has been a year of significant growth for SAI Global and the company has continued to improve its profit and dividends, based on organic growth and acquisitions.
"We plan to continue to build our global reputation by increasing our global reach and developing a critical mass in each geographic region in our publishing, compliance and assurance businesses, supported by professional services."
Chief executive Ross Wraight said: "Our business strategy is being executed, delivering solid financial outcomes.
"SAI Global has grown revenue and profit strongly since listing in December 2003.
"These results correlate directly with our strategic intent to build a global company.
"We have now established SAI's key business capability in Europe, North America and Australia and made good progress in the high-growth Asian region," Mr Wraight reported.
Ongoing solid demand for SAI Global products and services in Australia and overseas is expected, with revenue and profit growth to continue. More acquisitions are likely.
Revenue growth in excess of 25 per cent is expected, which should translate to an increase in net profit of more than 30 per cent, but with a second-half bias.
SHARE PRICE MOVEMENTS *********************
Shares of SAI Global yesterday rose 12c to $3.25. Rolling high for the year has been $3.52 and low $2.58. Dividend is 10c to yield 3.08 per cent. Earnings per share is 11.6c while p/e ratio is 28.02. The company has 143.2 million on shares with a market cap of $448.2 million.
Last month, SAI Global distinguished itself in being approved by United Kingdom Accreditation Service (UKAS) to provide accredited certificates to its assurance clients in the Britain.
The accreditation comes following its recent acquisition of Central Certification Services.
Accreditation through the United Kingdom assurance regulator follows an extensive assessment of SAI Global's operations demonstrating the competence, impartiality and performance capability of SAI's auditors.
SAI Global continues to integrate its acquired assurance businesses around the world and according to Mr Wraight, UKAS accreditation is recognition of the ongoing success of this process.
"This achievement means that the personnel, systems, procedures and records viewed indicate that SAI's activities from the UK office are in compliance with the requirements of the accreditation standards," Mr Wraight declared.
BACKGROUND **********
SAI Global Ltd was listed on the Australian Stock Exchange in December 2003.
The company provides standards, compliance and business improvement solutions to help companies comply with the requirements that shape their business world.
SAI Global is the source for global technical content such as standards and legislation.
Its services include:
* Logicom - Search more than 150 million items in its military parts and logistics database.
* Standards Infobase - Access to more than one million engineering standards, specifications and directives.
* Eurolaw - Find the full text of European Union treaties, directives and regulations.
* Metals Infobase - Search for metal grades, standards and suppliers.
* StandardsWatch - Track and monitor more than 120,000 standards.
* Standards Online Select - Access the standards you need.
* Regulatory NewsFeeds - Track and monitor developments in the law.
* Webshop - Download the standards you need.
SAI helps companies comply with standards, technical & legislative requirements.
These include Sarbanes-Oxley, Basel ll, Anti-money laundering and CLERP 9 compliance.
SAI Global helps clients tackle: business ethics; fraud and corruption control; privacy and data protection; anti-money laundering; information security legislative compliance and financial compliance.
It also covers training and awareness solutions include such as:
* LAWLEX - Track and monitor risk and compliance across your business;
* Easy i - Train employees and monitor their ongoing learning needs;
* Learning Management System (LMS), OCCAM - deliver and manage compliance training;
* Empower company employees through training around business professionals around the world every day.
It helps a company to understand, implement and manage business systems and processes through its education and training solutions in areas such as quality environment; workplace safety, food safety, information security and lead auditing.
Public courses, seminars, workshops, instructor-led and in-house programs are tailored to a client's business.
SAI Global also offers a unique training service around business improvement methodologies such as Six Sigma.
SAI Global's expert auditors independently assess your business processes to help you drive improvement.
The company provides independent assessment, certification and registration services, offering one of the most widely recognisable symbols of excellence and assurance, the "five ticks" StandardsMark.
This mark of quality is licensed to companies and products that have met the rigorous requirements of management systems or product standards.
It offers sustainable business performance delivered by people working together as a great team in the interests of customers, shareholders and the community.
ENDS
SAI Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
