Today's announcement indicated an EBIT of $25.5m to $27.5m for the year which is an increase of between 18% & 27%.
The company has a history of paying a small interim dividend followed by a large final dividend.
The interim dividend was 2.0c up from 1.5c a year earlier which was an increase of 33%. Last year the final dividend was 6.5c so the final dividend this year would be expected to be at least 7.0c & possibly 7.5c or 8.0c.
If we take the total of last year's dividend which was 8.0c (1.5c + 6.5c) & multiply by 1.18 (the minimum expected result increase) the answer is 9.44c & 2.0c has already been paid in the interim dividend which leaves us with 7.44c.
Take the possible maximum indicated result of 27% increase then 8.0 multiplied by 1.27 = 10.16c less the interim dividend of 2.0c = 8.16c.
Consequently the maximum result would indicate a dividend of 8.0c & the minimum expected result would indicate a dividend of possibly 7.5c.
It is only the plans for takeovers that could influence the directors to conserve cash & minimise the dividend but the results will deserve a dividend of 7.5c or 8.0c.
ANG Price at posting:
$3.51 Sentiment: LT Buy Disclosure: Held
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