The CEO owns more than half of the company/shares, the profits/ free cash flow and cash in hand of 104m make the M/Cap of 251m looks absurdly cheap, Div is extremely generous with a very high return on current SP.
He knows its a bargain.
SERVCORP REPORTS NET PROFIT BEFORE TAX OF $15.6 MILLION UNDERLYING NET PROFIT BEFORE TAX OF $37.5 MILLION UNDERLYING FREE CASH OF $66.1 MILLION
Total dividends for the 2020 financial year of 20.00 cents per share.
Resilient balance sheet Cash balances at 30 June 2020 of $101.4m, up $35.2m on 30 June 2019; driven by strong performance before the COVID-19 pandemic Cash balances currently in excess of $100.0m Underlying Free Cash 176% of Underlying FY20 NPBT, providing some buffer to navigate through COVID-19, supporting self-funded capital expenditure and dividends No external net debt
OUTLOOK
We have undertaken a detailed review of our business. For the 2021 financial year, we anticipate that, even at a low case, Servcorp will remain profitable; consequently, we expect the underlying business to continue to generate substantial underlying free cash.
Despite the COVID-19 challenges we are facing, we remain cautiously optimistic due to our unique positioning, global reach, technology platforms, longstanding track record and cash generation
SRV Price at posting:
$2.65 Sentiment: Buy Disclosure: Held
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