An $86 million impairment charge saw SAI Global (ASX: SAI) announce a net loss after tax of $43.2 million on Wednesday. Underlying net profit excluding the impairment was $42.4 million, down 5.1% on the prior year. An unchanged final fully franked dividend of 8.2 cents per share was declared.
The group said the impairment charge was a result of operating issues around a compliance-learning platform and costs associated with rectification and enhanced customer support. The problematic platform is due for replacement over the next 12-18 months.
Overall the group grew sales revenue to $478.6 million up 6% on the prior year with overall earnings before income tax, depreciation and amortization (EBITA) up 5.3% to $100.7 million.
The company believes the outlook remains positive and the market didn’t disagree, sending the share price up 3.59% on Wednesday. A falling Aussie dollar is a positive, with over 40% of equivalent EBITA from overseas in FY 2013. Notably, the dollar only began to weaken against its global peers in May.
Year-on-year the stock is down around 8%, reflecting recent disappointments and some flat performance. The company will need to deliver on a consistent basis to see its star rise again.
Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”
- Three companies that could double in the next year
- 3 shares with good prospects
- 3 ASX stocks you’d love to buy, but shouldn’t
Motley Fool contributor Tom Richardson does not own shares in any of the companies mentioned in this article.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.