ferret's stock to watch: advent limited

Ferret's Stock to Watch: ADVENT LIMITED
08:07, Friday, 27 May 2005

A COMPANY RESHAPING ITSELF AFTER REWARDING SHAREHOLDERS

Sydney - Friday - May 27: (RWE Australian Business News)

OVERVIEW
********

Shareholders don't often receive a $3.63 million windfall from
the sale of an asset.

Advent Limited (ADT) decided to give shareholders surplus cash
from the sale of the company's stake in Tower Technology Pty Ltd which
converted into 17c a share fully franked.

Directors say they have also retained the cash required to meet
all prudent commitments of the company.

Shareholders will receive their entitlements on June 17 by post.

However, the distribution was partly foreshadowed in the
half-yearly report to the ASX on February 18 when the company forecast at
least 10c a share.

It is consistent with the board's objective to return funds to
shareholders.

The updated net tangible asset backing on Wednesday was estimated
to be about $1.25 per share prior to the payment of the 17c per share
dividend, of which the Vignette shareholding represents 71c per share.

Directors yesterday pointed out that after the dividend payment,
the NTAB will reduce to an estimated $1.08 per share.

The current estimated NTAB at $1.25 is lower than the $1.46
assessed at December 31, due to the decline in the Vignette share price.

As previously advised Tech-Rentals Pty Ltd, Advent Limited's
wholly owned subsidiary, acquired the assets and business of Bear
Communications Australia on May 1.

Advent describes Bearcom as Australia's leading Motorola dealer,
which sells and distributes two-way radio communication equipment.

This acquisition will provide an excellent growth opportunity for
the company and will leverage off the infrastructure platform
Tech-Rentals already has in place.

There are significant synergies between the two businesses that
should be realised within the next financial year.

"We are pleased to announce the appointment of Mr Kieran Callan
to the position of chief executive officer of Tech-Rentals," Advent said.

"Mr Callan has a strong track record as a successful managing
director of mid-size consumer product businesses in Australia and the
UK."

SHARE PRICE MOVEMENTS
*********************

Shares of Advent yesterday rose 12c to $1.12. Rolling high for
the year has been $1.92 and low 85c. The company is paying out 17c a
share after the sale of a major asset. A dividend rate is still to be
fixed following a reshaping of profit earning assets.

In February Advent reported an operating profit after tax of
$565,000 for the half year ended December 31, against earnings of
$907,000 for the same period a year ago.

The major components of the current half year result were:

* A reduction in the income tax provision by $5.9 million with
regard to the sale of Tower Technology.

* A decline in the value of the Vignette shareholding by $3.5
million as a result of a reduction in the share price from $US1.66 as at
June 30 2004 to $US1.39 as at December 31 2004, and

* A foreign exchange loss of $2.8 million in relation to the
Vignette shareholding due to the strengthening of the exchange rate from
US68.9c to US77.9c, or by 9c, during the same period.

The Aussie dollar value of the Vignette shareholding has declined
by 26 per cent from $24.4 million as at June 30, 2004 to $18.1 million as
at December 31, 2004.

The valuation of the Vignette shareholding received at settlement
has declined by $12 million, or 40 per cent, from $30.1 million at March
1, 2004 to $18.1 million as at December 31, 2004.

It should be noted that no Vignette shares have been sold to date
as the company seems to be making a turnaround in earnings.

BACKGROUND
**********

Advent Ltd is described as being involved in the investment of
funds in capital opportunities in Australia and overseas.

ADT's key investment is Tech-Rentals Pty Ltd while Advent
Management Group is ADT's manager.

The company wholly owns Tech-Rentals, which is mainly operating
in scientific instruments, communications and computer equipment rental.

Tech-Rentals has been actively involved in opportunities in
telecommunications, power transmission and manufacturing to counter
depressed conditions in its traditional markets.

It has also invested to build up its business equipment product
offerings, particularly in monitors, printers, presentation equipment and
digital video cameras.

Advent has developed an extensive stock of desktop and notebook
computers.

It has a stake in Vignette, the software and expertise help
organisations which harnesses the power of information and Web for
measurable improvements in business efficiency.

As efficiency experts, Vignette helps increase productivity,
reduce costs, improve user experiences and manage risk.

Vignette's intranet, extranet and internet solutions incorporate
portal, integration, enterprise content management and collaboration
capabilities that can rapidly deliver unique advantages through an open
scalable and adaptable architecture.

Vignette experienced an operating loss for the quarter of $US11.9
million and an operating loss for the year of $US54.3 million on a US
GAAP basis.

ENDS

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I don't hold ADT