Equity Development10 May 2014 15:20
http://www.equitydevelopment.co.uk/doc/1206.pdf
Some info on SAL, the final bit "Looking ahead" Cut n pasted FYI
It is quite unusual for a quoted company to have publicly aired its expectations of
future profits; the market will now want to see those forecasts at least matched.
Further disappointment, after the recent painful adjustment to prior levels of
optimism, would be brutal indeed.
Nonetheless, as discussed, the balance sheet is secure and the RNS talks of the
2014 and 2015 PBT being £1.5m and £2-2.5m respectively. That equates to EPS
of roughly 5.3p and 7.2p (at lower end of the range).
The dividend has historically been set on a payout ratio of 41%. If that is
maintained, that would suggest dividends of 2.2p in 2014, and 3.0p in 2105.
With the shares at 81p after the sharp correction, that puts them on a 2015E PER
of 9.9x and yield of 4.2% At first glance, undemanding ratings for an
entrepreneurial company that defines its nascent sector, but after the recent
shock we do think that confidence will take time to recover, a process that will be
much dependent on better news on contract wins and boosts to revenue.