Nothing decent on TV tonight, so I thought I might add in my 2c...

Nothing decent on TV tonight, so I thought I might add in my 2c worth as well....


My understanding (please correct me if I am wrong) is that there will be only ONE dividend per financial year and that it would be declared in Sep (the same as last year) and would be based on the nett profit of the preceding financial year.

Last year's nett profit was $50.5M x 30% / 104M shares = 15c dividend.


Various statements by management have given me the impression that BCI will try its best to continue paying dividends at around 30% of the annual nett profit.

Based on this, it is my belief that the next dividend will only be declared around Sep and will be based on the Nett Profit for the financial year ending 30/06/13.

Based on the above assumptions, it would mean that BCI would have to make at least $62M nett profit this financial year in order to pay a 15c dividend.
(124M shares x 15c / 30% = $62M)

With a bumper Jan-Mar qtr I think that BCI will make more which means that we could be either looking at a dividend greater than 15c OR they might choose to pay off more of the debt.

I would guess that they would rather use any extra profit to pay off the debt - which would be more beneficial to long-term holders (more profits in the future) than short-term holders.

Could the prospect of only a "possible 15c dividend" for the next year or so be one of the reasons Regent sold up?
They would have figured this out when "buying the extra 25% share from FMG" was on the cards.

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All of the above is just my speculation and intended for discussion rather than investment information.