This is not likely to be a stock to appeal to day traders but for those who are mid term high growth hunters this company is publishing some very bullish sentiments! Customers Limited own/operate about 5,500 ATMs and with deregulated transaction fee charging recently introduced withdrawals are charged at a $2 fee each! Now that IS "cash flow"! LOL
Excerpt, Annual Report 2009 (released 19 Oct 2009) Outlook The current year will be a particularly exciting time for the Company. We remain confident of the Company’s strong underlying growth prospects. The 2010 results will benefit from a full 12 months’ contribution from the Direct Charging regime. We expect continued growth in EBITDA as founded primarily in the second half of the 2009 financial period off the back of the new convenience fee regime, additional revenue opportunities and ongoing cost efficiencies.
Excerpts, Open Briefing ® 19-Oct-2009 MD Tim Wildash We’re confident our strategic plan for the next three to five years will deliver some exciting revenue opportunities and they won’t necessarily require a lot of capital. All our current initiatives can be comfortably funded out of operating cash flows. We’re already delivering under the plan: we’ve signed Bendigo and Adelaide Bank, we’ve signed a better deal with BP Australia, and we’re confident of securing several other deals in the next months. We’re in a really strong position, and that absolutely reflects all the work we’ve undertaken over the last couple of years to restructure the business. We tick all the boxes with the prudential authorities, and we’re the only independent ATM provider to have our own bailment facility and the only one to have bank branding. We’re excited about the opportunities available to us to work with financial institutions and other major companies around Australia.
CFO Peter Campigli This financial year as we continue to generate profits, we’ll be able to move to paying “traditional” dividends out of current year profits. It’s our intention to pay interim and final dividends, with the interim dividend partially franked and the final fully franked.
corporatefile.com.au What is the intended level of your dividend payout?
CFO Peter Campigli This year, which is the transitional year, we’re looking at a 50 to 60 percent payout of earnings subject to finalisation of some of our strategic growth initiatives. Next year we’d expect the payout to be a bit higher.
corporatefile.com.au You’ve indicated that your target level of gearing is debt to equity of no more than 30 percent through the cycle. Gearing was 18 percent as at the end of June 2009, down from 31 percent a year earlier. In light of the capital return, how do you expect gearing to trend in the nearer term?
CFO Peter Campigli We’d expect gearing to be below the target level, the only exception would be if we identified a number of attractive strategic opportunities at the one time. Our board has focussed intensely on debt reduction over the last 12 months and as a rule our gearing should remain very conservative.
corporatefile.com.au In August you indicated you expect “continued growth” in EBITDA in the current year ending June 2010. Year to date, how are earnings tracking versus this expectation?
CFO Peter Campigli Earnings are in line with our budgets, and we’re now moving into what are traditionally the better months for the business, with the period from the Spring racing carnival through to Christmas our strongest from both an operational and profitability perspective. We’ll provide a trading update at the time of our AGM in late November.
corporatefile.com.au Customers Limited today announced a proposal to make a capital return of 8 cents per share, subject to a favourable class ruling on its tax treatment from the Australian Tax Office.
CUS Price at posting:
$3.09 Sentiment: None Disclosure: Held
