this company is growing very fast, is involved in managment rights in Qld and is buying more pays quarterly dividends of 11% and with terrorism, sars, Australians will holyday more at home read today announcment:
S8 LIMITED 2003-05-16 ASX-SIGNAL-G
HOMEX - Brisbane
+++++++++++++++++++++++++ PLACEMENT AND 2:3 OPTION ISSUE
S8 Limited today announced that it has completed a placement of 1.32 million shares raising $2.5 million. The shares were placed at $1.90 per share through broker Grange Securities Limited.
Jenny Hutson, Chairperson of S8 said that the shares had been placed with a range of high profile institutional investors and high net worth individuals.
Hutson said that:
'S8 is and will continue to be successful because:
* it has a strong and clear market niche;
* it has a well structured and disciplined distribution strategy;
* a focused approach to acquisitions; and
* a robust cash flow and profit'.
UTILISATION OF FUNDS
S8 Limited has focused on growth through strategic acquisitions over the past 18 months.
S8 Limited now manages 22 property management services businesses. The total number of apartments under management is in excess of 2,436 (which is the equivalent of approximately 3,000 rooms).
The S8 Group has established itself as the major property management services owner in the country and intends to expand its business through the acquisition of further property management services businesses.
The company is in discussions with a range of potential vendors of suitable property management services businesses and anticipates making further acquisitions within the next 2 to 6 months. The capital raised will ensure that S8 is well placed in this regard.
DIVIDEND POLICY AND FINANCIAL PERFORMANCE
As previously indicated S8 Limited pays quarterly dividends. The most recent interim dividend will be paid in May 2003. The board anticipates that quarterly dividends will be 3.75 cents per quarter (15 cents per annum) per ordinary share payable in around May, August, November and February of each year.
This represents a forecast grossed-up dividend in excess of 11% based on current trading prices.
The net profit after tax for S8 Limited for the period ended 31 December 2002 was $2,501,172. This was an increase of 32% over the net profit reported for the period ended 31 December 2001. S8 Limited remains well placed to meet its forecast 20% increase in profit for the year to 30 June 2003.
OPTION
S8 Limited today announced a 2 for 3 option issue to placees. The options will be exerciseable at $3.00 between 30 April 2005 and 30 April 2007.
This issue will result in approximately 0.88 million options over ordinary shares being issued. The exercise of the options will result in the issue of ordinary shares which will rank equally with all current shares on issue. Key dates in relation to the issue are as follows:
* applications - due by 16 May 2003; and
* allotment and dispatch of option statements - by 21 May 2003.
S8 Limited has a detailed interest rate risk management strategy in place in relation to its debt. These arrangements expire between 2005 and 2007. The board believes that the company will have significant growth in the next 2 years and that issue of options now will give S8 Limited the full range of capital management alternatives during the period that its current debt arrangements 'roll over'.
Summary of key activities and key corporate events
S8 Limited has been focused on growth through acquisition over the past 18 months. The company has acquired 17 property management services businesses during this time. This growth strategy will continue.
Key corporate events have included:
31 October 2001 Acquisition of Enderley Gardens property management services business completed.
16 November 2001 Lodged prospectus to raise $3.5m to fund the purchase of property management services businesses and property associated with St Tropez and Equinox Sun Resort.
11 December 2001 Lodged supplementary prospectus to accept oversubscriptions of $1.5m to fund the purchase of property management service businesses and property associated with Aloha.
13 December 2001 Acquisition of St Tropez property management services business completed.
15 December 2001 Acquisition of Equinox Sun Resort property management services business completed.
21 December 2001 Shares quoted on ASX.
31 January 2002 Acquisition of property management services business associated with Aloha completed.
28 February 2002 Acquisition of property management services business and property associated with Aruba Beach Resort completed.
6 March 2002 Acquisition of property management services business and property associated with The Rays Resort completed.
15 March 2002 Placement of 4,142,105 shares raising $7.87 million. Announcement of 1:2 bonus 5 year options over ordinary shares exerciseable at $3.00 between year 3 and year 5.
20 June 2003 Management agreement for the Chevron Renaissance entered into.
17 September 2003 Acquisition of the Sirocco Resort and Zanzibar Resort, Mooloolaba, completed.
24 September 2003 Acquisition of the South Pacific Resort, Noosa, completed.
1 November 2003 Acquisition of Bel Air Resort on Broadbeach, completed.
18 November 2003 Acquisition of Accom Noosa, Noosa Heads, property management services business, completed.
22 November 2003 Acquisition of Dave Allen Real Estate business, completed. 20 December 2003 Keys to the first tower of Chevron Renaissance Resort received from the Raptis Group.
2003 Awarded 2 nd place in the BRW Fast 100 Awards for 2002.
3 January 2003 Acquisition of the businesses of Australian Holidays Pty Ltd, Australian Apartments & Resorts Pty Ltd, Gold Coast Booking Centre Pty Ltd, Sunshine Coast Booking Centre and Teenbreak Pty Ltd, completed.
S8 Limited is in a very strong position to capitalise on any opportunities as and when they arise. This will enable the company to continue its growth strategies through acquisition.
For further information please contact: Ms Jenny Hutson Chairperson S8 Limited Phone (07) 3233 8820 or 0418 734 554
SEL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held