Cashed-up Sequoia looks for growth
The degree to which Sequoia’s sale of 80% of Morrison Securities has left it cashed-up has been driven home in the company’s first half results detailing an “abnormally high” net profit after tax (NPAT) of $27.8 million.
The company’s normalised EBITDA for the period adjusted for non-recurring expenses was approximately $3.6 million, which the chairman noted was slightly below its $4 million budget.
The director’s declared a dividend of 2 cents per share fully franked.
Sequoia managing director and chief executive, Gary Crole, noted that the company’s investment portfolio included a 6% stale om Centrepoint Alliance and smaller positions in listed invest companies.
He reflected that Sequoia’s original plan set in FY 20/21 was to build a sustainable group of businesses using a ‘tortoise’ rather than ‘hare’ approach.
“Since that time our share price has increased from 20 cents per share and our net cash balance has increased almost 10-fold without having to raise any new capital,” he said.
“Anyone who has been a shareholder since FY21 has received a total dividend return of 9.5 cents per share fully ranked. More importantly shareholders now have shares in a group that has reached a point where most of the foundation work has been completed.”
“Sequoia is now in a position to finance its next round of growth with cash and liquid investments of more than $23 million,” Crole said.
The company confirmed its forecast annual revenue target of $130 million for FY24 with EBITDA in the range of $8.1 million to $10 million.
“The longer-term revenue target of $300 million at 8% pre-tax operating cash flows remains the goal,” the announcement said.
Another levy on financial advisers. This is just blatant persecution.
Here comes another moral hazard. It just encourages the bureaucracy to bloat at the expense of productivity and prosperity.
Rules only apply to some, generally if your cheque book is large enough then you are ok to do whatever…
This is the sort of rubbish that comes out of the modern version of Treasury advice. The boys over in…
This just goes to show the contempt and distain by regulators for the advice sector. A never-ending pole on stuff…