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
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