Subiaco-headquartered property manager Wentworth Mutual Ltd has announced a market update on its earnings performance for this financial year, as well as forecasting record earnings for 2006-2007.
Subiaco-headquartered property manager Wentworth Mutual Ltd has announced a market update on its earnings performance for this financial year, as well as forecasting record earnings for 2006-2007.
The board has confirmed that the company is on track to achieve its projected earnings before interest tax depreciation and amortisation of $800,000 for the 2005-2006 financial year and has predicted EBITDA of $6.6 million for 2006-2007.
Group Chairman Colin Cowden says "We are having a great 2005-2006 financial year second half and given that we have a number of strategic initiatives nearing finalisation and due to be announced to the market shortly, we are more than confident that we will be able to continue the momentum and achieve the projected '06/'07 EBITDA, which will be a record result for the Company."
The board has also resolved to conduct a share consolidation of 1 share for 20, resulting in the current issued capital of 2.7 billion shares being reduced to 135 million shares on issue and lower share related expenses for the Group.
Wentworth's board will seek approval to change the company name from Wentworth Mutual Ltd to Wentworth Holdings Ltd and will also seek shareholder approval to amend the company's constitution to enable non-marketable parcels to be purchased by Wentworth Mutual Ltd.
As at 1055 WST, shares in Wentworth were at 2.3 cents.
Below is the full announcement:
WENTWORTH SETS ITS SIGHTS ON RECORD 2006-2007
Wentworth Mutual Ltd (ASX:WWM) is pleased to announce a market update on its
earnings performance and future share capital initiatives.
"Given the progress we have made on a number of fronts including our corporate
restructure, our acquisition strategy, our results to date, our finalised budgets for 2006-
2007 and attracting experienced key personnel, I am pleased to announce a number of
initiatives which will further enhance our aim of building Australia's leading property
management Company," stated Kingsley Lamont, Executive Director of the listed public
Company.
The initiatives referred to span the Group's projections and share activities commencing
with a resolute confirmation of the 2005-2006 earnings before interest, tax, depreciation
and amortisation (EBITDA) of $800,000.
2005-2006 Earnings Guidance
The Board, having confirmed that the Company is on track to achieve its projected
EBITDA of $800,000 for the 2005-2006 financial year has also predicted a major
increase in the Group's EBITDA projection for the 2006-2007 financial year.
2006-2007 Record Forecast
Group Chairman Colin Cowden verified that Wentworth is projecting an EBITDA of
$6.6 million for the 2006-2007 financial year - the highest in the Company's history.
"We are having a great 2005-2006 financial year second half and given that we have a
number of strategic initiatives nearing finalisation and due to be announced to the market
shortly, we are more than confident that we will be able to continue the momentum and
achieve the projected '06/'07 EBITDA, which will be a record result for the Company."
he said.
Share Capital Initiatives
On the strength of the Group's consistent results and outstanding progress in a relatively
short period of time, the Board has also resolved to conduct a share consolidation of 1
share for 20. This will result in the current issued capital of 2.7 billion shares being
reduced to 135 million shares on issue and lower share related expenses for the Group.
Re-structure of non-marketable share parcels
Further, the Wentworth Board has resolved to seek Shareholder approval to amend the
Company's Constitution to enable non-marketable parcels to be purchased by Wentworth
Mutual Ltd. This initiative will also lower expenses involved in administering and
updating a growing share register.
Change of Name
To more accurately reflect the diversification in the Group's business activities and in
preparation for future opportunities and diversification, Wentworth's Board will also seek
approval to change the Company name from Wentworth Mutual Ltd to Wentworth
Holdings Ltd.
These initiatives will be proposed to Shareholders at the next Wentworth Shareholders
General Meeting scheduled to be held in Melbourne on Monday 7th August 2006.
"Wentworth is entering an exciting phase of its development," stated Kingsley Lamont,
"The hard work of reconstruction and setting a base is now materialising in our results.
We have developed a solid platform for growth and have established Wentworth as a
Company with a long term future. We are now regularly approached by other
professionals in the property management industry seeking to be a part of the
invigorating diversified concept that we have created within the Organisation."
Further information may be obtained by contacting WWM's media liaison consultant,
Mark Silveira on 03 98480777 or marks@funn.com.au
