Rather disappointing result I would have thought?
Back in February management reiterated previous guidance of 2009/2010 eps of a 25% increase and have come in with only 21.7%
Final dividend of 10c brings years total to 20c or a payout ratio of only 55% - overly conservative, below their historical average ratio and arguably insufficient to compensate for holding a small cap stock with limited capital growth potential. They could have comfortably made the final payout 12c, giving a payout ratio of a still conservative 60%.
At a 2009/2010 p.e. of about 8x the stock is fairly valued.
In view of the above I would not be surprised to see the stock sold off tomorrow to around $2.60 - $2.70
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