SAI Global Limited (ASX: SAI) today announced a turnaround in statutory net profit after tax attributable to shareholders of $35.3 million, up from a loss of $43.2 million in the previous corresponding period (pcp). Underlying1 net profit, excluding significant items, was $45.0 million, an increase of 6.3% over the pcp.
Revenue continues to grow, up 10.3% to $527.7 million and 5.4% in constant currency terms. Net cash inflows from operating activities were $80.5 million, up 11.1% on FY13. Net cash inflows before significant items were $88.8 million, up 17.7% on the pcp.
The directors have declared a final dividend of 8.5 cents per share, 45% franked. This brings the total dividends for the year to 15.5 cents, up 3.3% compared to last year. The final dividend will be paid on 26 September 2014. The record date is 2 September 2014.
Expressions of Interest Process
On 26th May 2014 SAI announced that it had received an unsolicited, indicative, conditional and non-binding proposal from Pacific Equity Partners Pty Limited to acquire 100% of the Company through a recommended scheme of arrangement for an indicative price in the range of $5.10 to $5.25.
On 2nd June 2014 the Board announced that the Company had been approached by a number of other parties also expressing interest in SAI and its businesses and that the Board had determined that it was in the best interests of shareholders to conduct a formal process to review its strategic options.
The Company has responded diligently and prudently to all information requests. At the date of this announcement the process is continuing.
Outlook for FY15
Improved profitability is expected across each of SAI’s operating divisions in FY15. SAI expects Information Services and Assurance Services to grow revenue and EBITDA at improved operating margins and Compliance Services to report an increase in EBITDA from flat revenue in FY15.
On this basis Management were quite right not to engage the first offer to come along. Good work and I unreservedly withdraw my "Cardigan Central" comment. PEP have been extremely opportunistic.
SAI Price at posting:
$4.84 Sentiment: Hold Disclosure: Held
