9.1% fully franked dividends trading below NTA

PTB GROUP

Business
Pacific Turbine Brisbane is a specialist engine workshop and sales facility located near the Brisbane Airport offering tailored solutions to its customers. It has a large inventory of turbine engines and turbine engine components with a dedicated and highly experienced team of engineers, sales and technical representatives.

The principal activities are:

• • Specialist repair and overhaul of PT6A and TPE331 turbine engines at its dedicated Brisbane facility;
  • Managing the repair and overhaul of engines at third party overhaul shops on behalf of its customers;
  • Trading in spare parts for engines and components;
  • Trading in parts (other than engines) for its customers;
  • Long-term engine management contracts for the above activities that provides our customers with a guaranteed efficient, expert, and timely service for all their engine and component needs. This also provides significant commercial benefits as our customer’s cashflow is matched to their operational activity, providing better working capital management and “peace of mind”;
  • Managing repair and overhaul and trading in non PT6A and TPE331 turbine engines and component parts; and

• Short and long term aircraft, turbine engine, and turbine engine component rental, leasing, and finance.

• 62.749m shares @ 55c = $34.5 m market cap

• Annualised revenue of circa $38m , 1H 2018 Revenue $18.9m , Mkt cap/Revenue ratio =0.91x

• Half year Net Profit Before Tax $1.9m, Annualised $3.8m , P/E of 9x

• Fully franked dividend of 5c , dividend yield of 9.09%

• NTA Backing of 66c > current share price