ASG Group Limited (ASX: ASZ) has seen its share price drop 7.2% to 96 cents today, before going into a trading halt.
The IT consulting company expects to announce a 'material contract win' before Thursday's market opening. But it was the company's disappointing results that were also announced today that saw the shares sold off.
Here's a quick summary:
- Revenues: Up 2.6% to $164.3 million compared to the previous financial year
- Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA): Down 8.1% to $20.2 million
- Net profit after tax: Up 6.3% to $9.5 million
- Earnings per share: Up 6.2% to 4.61 cents
- Dividend and yield: Zero. Zip. Nada. None.
As you can clearly see, investors may have been expecting a dividend, although ASG hasn't paid a dividend since October 2012. Growth in earnings of just 6% also appears to be lower than the market expected.
Outlook
ASG says it is targeting revenues of between $180 and $190 million, and already has $160 million of revenue already locked in. An EBITDA margin of 14% should see EBITDA come in at around $26 million – a substantial increase over this year's $20.2 million.
At the current share price of $0.96, ASG is trading on a P/E ratio of 20.8x – not exactly cheap, although growth this financial year appears strong. ASG could be one to watch.
