Re: PBA Peoplebank
Re: Peoplebank Australia Limited’s announcement 30 January 2007
The Continuous Disclosure announcement of 30 January 2007 generated considerable investor interest, but apparent uncertainty in the market about Peoplebank’s continuing growth prospects. Your Directors wish to be sure there is no misunderstanding as a consequence.
As advised, the reviewed interim financial statements should be ready for release in mid February. The primary contracting business grew approximately 15% in the 6 months to 31 December 2006 with a very high quality customer profile. Sales in the higher margin permanent placement business were behind expectations. The combined NPAT as a result is expected to be about $1.85 million, 5% less than comparative 31 December 2005. It should be noted that the comparative period included “record” permanent placements.
Projections are for a stronger second half of the fiscal year. Director forecasts and market conditions indicate full year profit results will be ahead of last year.
Peoplebank has a strong balance sheet, and anticipates no changes to its dividend policies.
Its expansion strategy through earnings accretive M & A has been thoroughly reviewed and reaffirmed. Substantial funding is readily available. Peoplebank considers itself very well positioned within its industry and is actively pursuing opportunities. The market will be kept informed as and when potential transactions are appropriately advanced.
The Directors confidently consider Peoplebank to be a growth stock and are committed to delivering quality earnings to shareholders.