Business model should easily look after itself, NPAT exactly as stated at half yearly, maintaining of operating margins means staff and suppliers must be being squeezed badly (good for shareholders though).
Operating and free cashflow are very high. Debt to equity is quite comfortable at around 36%
Final 2010 dividend should be quite handsome given the current lift in advertising spend.
KEY THEMES 1. Hard fought result in worst year in living memory. 2. Margin firmly in control. 3. Excellent free cash flow. 4. Strong balance sheet. 5. Some exciting developments in further strengthening our portfolio of business. 6. Market share gains in 09 and a Fitter business means we are well set for any upturn. 7. Well positioned to exploit group potential strong start to 2010, on track for a return to growth.
2010 OUTLOOK RETURN TO GROWTH Strong momentum: optimistic outlook. Our businesses are stronger. Our focus is 100% external. New revenue pipeline is robust. Cost base sustainably lower. January revenues encouraging. Our goal: double digit NPAT growth.
As the advertising industry recovers SGN appears to be well positioned for strong growth.
SGN Price at posting:
80.5¢ Sentiment: Buy Disclosure: Held
