09/10/2007 - 15:25

ISS Group plans $5.9m capital return

09/10/2007 - 15:25

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Nedlands-based information and technology company ISS Group Ltd will provide its shareholders with a capital return of 6 cents per share, subject to the approval of the plan by shareholders at a general meeting to be held on or around 16 November 2007.

Nedlands-based information and technology company ISS Group Ltd will provide its shareholders with a capital return of 6 cents per share, subject to the approval of the plan by shareholders at a general meeting to be held on or around 16 November 2007.

 

 

The full text of a company announcement is pasted below

ISS Group Limited (ASX: ISS) is pleased to announce its intention to provide all shareholders with a capital return of 6 cents per share, subject to the approval of the plan by shareholders at a general meeting to be held on or around 16 November 2007.

Following the successful take up of unlisted options at 30 September 2007, the company has significant cash reserves above its operating requirements. The board has proposed a tax free capital return of 6 cents per share in lieu of paying out a partially franked dividend for this year. The capital return will have the effect of reducing an ISS Group shareholder's cost base by the amount of the capital return.

In addition, the ISSO listed options (30 September 2008, $0.50 exercise price) will be favourably impacted by the capital return. These options will have their exercise price reduced by the amount of the capital return from 50 cents to 44 cents per option.

The capital return will reduce ISS cash by a total of $5,943,184 assuming no further options are exercised prior to the entitlement date, expected to be on or around 23 November 2007, with a payment date of 30 November 2007.

The board is satisfied that the capital reduction will not have any negative impact on the company's ability to continue funding or growing its business.

The proforma working capital position of the Company at 30 September 2007, based on unaudited management accounts is as follows:

..Before Capital ReturnAfter Capital Return
Cash at bank (at 4 Oct 2007)$9 million$3 million
Receivables(at 4 Oct 2007)$2.4 million$2.4 milllion
Total liabilities$1.4 million$1.4 million
Net working capital$10 million$4 million

The Company will shortly be forwarding shareholder meeting details together with the actual timetable for the capital return to all shareholders.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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