Specialist tele-management and business communication strategy company TeleMasters delivered another set of powerful year-end results for the period up to September 2009.
Ranked in the top 10 of the Sunday Times Top 100 performing shares and famously described in 2009 by the Red Hot Penny Shares portfolio as a 'Raging Bull', TeleMasters has, since listing in 2007, delivered outstanding returns to shareholders. Its 2009 results are no exception, with revenue up an impressive 29%.
“Obviously we're very happy,” says TeleMasters CEO, Mario Pretorius. “TeleMasters has done well in challenging circumstances. Our business model, which is rooted in recurring annuity income, has positioned us strongly during the global downturn. TeleMasters remains largely un-geared and cash positive, so moving forward we are well placed to continue on the current trajectory.”
Results highlights
* Revenue +29.19%
* Net asset value per share (after dividends and distributions) +37.56% (66.98c per share from 48.69c per share)
* Headline earnings per share +9.69%
* Earnings per share +2.82%
* Dividends per share +8 cents
* Capital distribution per share +8 cents
The company continues to focus on maintaining its margins and increasing operational efficiencies, a focus which has served it well historically and which delivered HEPS growth of 9.69% during one of the worst financial markets in recent memory.
Increased operational efficiencies saw net asset value grow by an impressive 37.65% to 66.98 cents per share, after total payments to shareholders of 16c per share (representing a further 32.86% value per share) are considered.
In the last quarter, TeleMasters was forced to write off a large debt in a liquidated subsidiary of a listed financial company. The write-off saw the full year financial results ending with a 2.82% increase in earnings per share. Headline earnings were higher thanks to the add-back of the impairment to the intangible asset, necessitated by the failure. Without the write-off, TeleMasters' earnings growth would have been in the 20% region.
“We've continued with our practise of paying quarterly dividends,” adds Pretorius. “During the year we paid out 8c per share in dividends and a further 8c in capital distributions. This was in line with a special resolution passed by the company at its last AGM. This practice will be continued in the future according to our flexible dividend policy.”
The following dividends were declared during the year:
* Four cents per share dividend - paid to shareholders registered on 16 January 2009 and declared on 18 December 2008.
* Four cents per share dividend - paid to shareholders registered on 9 October 2009 and declared on 15 September 2009.
* In addition, 8 cents capital distributions of share premium were made during the year.
“Strategically speaking, our aim is to provide the most efficient telecommunications solution for our clients' businesses,” concludes Pretorius. “That means continuing to focus on improving our service levels, to mutual benefit, and ensuring that our organic growth strategy remains in place and is able to service the needs of the business - again, to everyone's benefit.”
The expected effects of the lowering of telecommunication interconnect rates will be felt from March onwards. ”We are finding new opportunities to serve our clients. In many cases revenue per client-minute can be enhanced from 25c to 72c while providing a more efficient service. That's what we're looking forward to.”
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