Swift’s founder reaps big gain on performance shares

Swift Media founder Robert Sofoulis is set to pocket a windfall of about $3.8 million after the vesting of performance shares, despite the company expecting its underlying earnings to fall by over 7 per cent for the 2019 financial year.

Swift provides installation services and organises content for communications infrastructure at guest accommodations, workforce communities and other large 'captive audience' environments, such as aged care facilities.

Swift said that, as of July 31, the company converted approximately 16.67 million worth of performance shares, after it achieved criteria of servicing at least 53,000 rooms that generated revenue.

The performance criteria was approved by shareholders in April 2016 to allocate the shares to Sofoulis Holdings Pty Ltd, which is owned by Robert and Wendy Sofoulis.

Soufoulis Holdings owns 37.15 per cent of the shares in Swift, making it the largest shareholder in the company by some distance.

Schroder Investment Management is the second largest with a 5.52 per cent stake.

Mr Sofoulis is currently a non-executive director of the company.

At Swift’s closing price of 23 cents per share on July 31, the shares would be worth around $3.83 million.

It’s the second time Mr Sofoulis has converted performance shares this year, as in March 16.67 million worth of performance shares were vested, after the company reached criteria of servicing at least 44,000 rooms that generated revenue.

The company’s revenue for the 2019 fiscal year rose by 11 per cent to $24.8 million.

Additionally, its annualised recurring revenue was up to $18.5 million, an 18 per cent surge.

However, its earnings before interest, tax, amortisation and depreciation is expected to fall from approximately $2.7 million in the prior corresponding period to $2.5 million.

Swift said it anticipated to win several new contracts in the resources and aged care sectors by the end of the 2019 financial year that would have increased EBITDA “significantly”, however these contracts were not finalised by the end of the fiscal year.

As a result, the company expects a boost in earnings for the first half of 2020.

Shares in Swift were flat at 3.55pm AEST to trade at 24 cents each.

A year ago, its shares were trading at 43 cents each.