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.
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