WA-based stockbroking firm Euroz Ltd has announced a net profit after tax of $21.9 million, up 30.3 per cent on the same time last year.
WA-based stockbroking firm Euroz Ltd has announced a net profit after tax of $21.9 million, up 30.3 per cent on the same time last year.
Increasing their pre-tax annual profit by 30.7 per cent, the company has also declared a fully franked dividend of 30 cents per share.
The company has also completed a $46.2 million capital raising through the placement of 14 million shares at $3.30 each, raising funds for the expansion of Westoz Funds Management operations.
Euroz shares were up 12.27 per cent to $4.94 at close of trade today.
The full text of a company announcement is pasted below
The Directors of Euroz Limited are pleased to announce an unaudited pre-tax profit for the year ending 30 June 2007 of $31.5m (2006: $24,105,669) - an increase of 30.7%, and a net profit after tax of $21.9 m (2006: $16,805,514) - an increase of 30.3%.
The directors have declared a fully franked dividend of 30 cents per share (equating to 35 cents for the full year). The shares of Euroz Limited will trade ex-dividend from approximately 6 July and the dividend will be paid on 18 July 2007.
This record result has been achieved through strong contributions from all divisions of the Group:
- Euroz Securities - Completed a record $786 million in capital raisings and $5 billion in ASX turnover for the financial year.
- Westoz Funds Management - The Westoz Investment Company now manages approximately $150m million and achieved 44% gross returns for the financial year.
- Investments - Solid share trading returns achieved.
The Directors are particularly pleased with this record result but caution that future profitability will continue to be dependent on market sentiment and activity.
CAPITAL RAISING
The Directors of Euroz Limited would like to announce the completion of a $46.2 million capital raising through the placement of 14 million shares at $3.30 per share ex dividend.
The shares will be issued in two tranches. The first tranche of 7.5 million shares will settle on or about 20 July 2007 and the second tranche of 6.5 million shares will be subject to shareholder approval at an EGM on or around 8 August 2007 and settle the following business day.
The Company will apply these funds as follows:
- A major expansion of the operations and product offerings of Westoz Funds Management.
- Increasing capital requirements for all divisions of Euroz Securities. In particular the Corporate Finance department has significant expansion opportunities in Merger and Acquisition and ECM related activities.
- Strengthen the Euroz Limited balance sheet to enable a new focus on direct investments.
- General working capital requirements
These shares have been placed to existing large shareholders of Euroz Limited and to staff of the Euroz group of Companies.
The placement of new shares will be made on an ex-dividend basis and the core balance sheet of Euroz Limited post these events will be approximately $89 million.
