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Ann: MUA Board Reconfirms Confidence In The Business, page-4

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milesy

4,729 Posts.

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26/07/17

08:56

Post #: 26079705
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Originally posted by Cleo ↑

Mitula Group Board Reconfirms Confidence in the Business The Board of the Mitula Group Limited (“Mitula Group” or the “Company”) (ASX:MUA) has today reconfirmed its confidence in the Management and the strategic direction of the Company. Combined, the Board and Management own approximately 45% of the shares in the Company. As such, the team is heavily invested in the success of the business and is confident of the long term value of its ‘Closer to the Transaction’ strategy for all shareholders. The Board fully recognises the market impact of the recent forecast downgrade and has undertaken a series of initiatives to reconfirm its support for the Company. These include: • The Short Term Incentive (“STI”) Program in place for Senior Management will not be paid in 2017; • From 1 July 2017 onwards, all Board members will take their fees in the form of shares at a price of $1.00, reflecting the pre-announcement share price and a significant premium to the closing price on 25 July 2017; and • The Directors will individually consider purchasing shares on market following the release of the half year results on 10th August 2017 and the end of a trading blackout period. Simon Baker, Chairman of the Mitula Group, commented: “We fully understand the impact that the reforecast has had on our shareholders and believe that it is only right that the Board and Management restructure their packages to reflect this reforecast and to also show their support for the Company. “Senior Management, which was already at the lower end of the pay spectrum and reliant on share price growth for true personal value creation, will not receive their 2017 short term incentive payments. “The Board has agreed to receive their fees in the form of shares at the price of $1.00 from 1 July 2017 and individual Board Members will look at buying shares on market after the release of the Company’s interim results on the 10th August 2017. “The Company is in very good shape with full year revenues forecasted to have year on year growth between 21.4 and 28.6 percent to between $34.0 million and $36.0 million and adjusted EBITDA to be between $12.0 million and $13.0 million. In addition, the Company has no debt, approximately $11.0 million in the bank, strong growth, a clear strategy and is still very profitable.

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The market got this one wrong.

Huge bounce coming today.

Let's see how long it takes to close the gap, but the $1 price target has been well and truly set.

Well done to those who bought during the carnage yesterday.

And even more well done to the board on taking these steps. Rarely do you see communication of this type.

Milesy

MUA Price at posting: 55.0¢ Sentiment: None Disclosure: Not Held
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Ann: MUA Board Reconfirms Confidence In The Business, page-4

Top Stories

Nine staff strike as Paris Olympic coverage begins

Red Hawk upgrades Blacksmith with DSO mineral resource at the Eagle Deposit

IGO kicks off earn-in copper drilling on-site Encounter's Yeneena play as it adopts new identity

Monadelphous inks $200M contract with Woodside to help build Pluto LNG – but will it make Scarborough cheaper?

MinRes jumps 5% as the company meets production guidance – depressed iron ore prices be damned

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