SEL s8 limited

good company

  1. 48 Posts.
    this company is growing very fast, is involved in managment rights in Qld and is buying more pays quarterly dividends of 11%
    and with terrorism, sars, Australians will holyday more at home read today announcment:

    S8 LIMITED 2003-05-16 ASX-SIGNAL-G

    HOMEX - Brisbane

    +++++++++++++++++++++++++
    PLACEMENT AND 2:3 OPTION ISSUE

    S8 Limited today announced that it has completed a placement of 1.32
    million shares raising $2.5 million. The shares were placed at $1.90
    per share through broker Grange Securities Limited.

    Jenny Hutson, Chairperson of S8 said that the shares had been placed
    with a range of high profile institutional investors and high net
    worth individuals.

    Hutson said that:

    'S8 is and will continue to be successful because:

    * it has a strong and clear market niche;

    * it has a well structured and disciplined distribution strategy;

    * a focused approach to acquisitions; and

    * a robust cash flow and profit'.

    UTILISATION OF FUNDS

    S8 Limited has focused on growth through strategic acquisitions over
    the past 18 months.

    S8 Limited now manages 22 property management services businesses.
    The total number of apartments under management is in excess of 2,436
    (which is the equivalent of approximately 3,000 rooms).

    The S8 Group has established itself as the major property management
    services owner in the country and intends to expand its business
    through the acquisition of further property management services
    businesses.

    The company is in discussions with a range of potential vendors of
    suitable property management services businesses and anticipates
    making further acquisitions within the next 2 to 6 months. The
    capital raised will ensure that S8 is well placed in this regard.

    DIVIDEND POLICY AND FINANCIAL PERFORMANCE

    As previously indicated S8 Limited pays quarterly dividends. The most
    recent interim dividend will be paid in May 2003. The board
    anticipates that quarterly dividends will be 3.75 cents per quarter
    (15 cents per annum) per ordinary share payable in around May,
    August, November and February of each year.

    This represents a forecast grossed-up dividend in excess of 11% based
    on current trading prices.

    The net profit after tax for S8 Limited for the period ended 31
    December 2002 was $2,501,172. This was an increase of 32% over the
    net profit reported for the period ended 31 December 2001. S8 Limited
    remains well placed to meet its forecast 20% increase in profit for
    the year to 30 June 2003.

    OPTION

    S8 Limited today announced a 2 for 3 option issue to placees. The
    options will be exerciseable at $3.00 between 30 April 2005 and 30
    April 2007.

    This issue will result in approximately 0.88 million options over
    ordinary shares being issued. The exercise of the options will result
    in the issue of ordinary shares which will rank equally with all
    current shares on issue. Key dates in relation to the issue are as
    follows:

    * applications - due by 16 May 2003; and

    * allotment and dispatch of option statements - by 21 May 2003.

    S8 Limited has a detailed interest rate risk management strategy in
    place in relation to its debt. These arrangements expire between 2005
    and 2007. The board believes that the company will have significant
    growth in the next 2 years and that issue of options now will give S8
    Limited the full range of capital management alternatives during the
    period that its current debt arrangements 'roll over'.

    Summary of key activities and key corporate events

    S8 Limited has been focused on growth through acquisition over the
    past 18 months. The company has acquired 17 property management
    services businesses during this time. This growth strategy will
    continue.

    Key corporate events have included:

    31 October 2001 Acquisition of Enderley Gardens property management
    services business completed.

    16 November 2001 Lodged prospectus to raise $3.5m to fund the
    purchase of property management services businesses
    and property associated with St Tropez and Equinox
    Sun Resort.

    11 December 2001 Lodged supplementary prospectus to accept
    oversubscriptions of $1.5m to fund the
    purchase of property management service businesses
    and property associated with Aloha.

    13 December 2001 Acquisition of St Tropez property management
    services business completed.

    15 December 2001 Acquisition of Equinox Sun Resort property
    management services business completed.

    21 December 2001 Shares quoted on ASX.

    31 January 2002 Acquisition of property management services
    business associated with Aloha completed.

    28 February 2002 Acquisition of property management services
    business and property associated with Aruba Beach
    Resort completed.

    6 March 2002 Acquisition of property management services
    business and property associated with The Rays
    Resort completed.

    15 March 2002 Placement of 4,142,105 shares raising $7.87
    million. Announcement of 1:2 bonus 5 year options
    over ordinary shares exerciseable at $3.00 between
    year 3 and year 5.

    20 June 2003 Management agreement for the Chevron Renaissance
    entered into.

    17 September 2003 Acquisition of the Sirocco Resort and Zanzibar
    Resort, Mooloolaba, completed.

    24 September 2003 Acquisition of the South Pacific Resort, Noosa,
    completed.

    1 November 2003 Acquisition of Bel Air Resort on Broadbeach,
    completed.

    18 November 2003 Acquisition of Accom Noosa, Noosa Heads, property
    management services business, completed.

    22 November 2003 Acquisition of Dave Allen Real Estate business,
    completed.
    20 December 2003 Keys to the first tower of Chevron Renaissance
    Resort received from the Raptis Group.

    2003 Awarded 2 nd place in the BRW Fast 100 Awards for
    2002.

    3 January 2003 Acquisition of the businesses of Australian
    Holidays Pty Ltd, Australian Apartments
    & Resorts Pty Ltd, Gold Coast Booking Centre Pty
    Ltd, Sunshine Coast Booking Centre and Teenbreak
    Pty Ltd, completed.

    S8 Limited is in a very strong position to capitalise on any
    opportunities as and when they arise. This will enable the company to
    continue its growth strategies through acquisition.

    For further information please contact:
    Ms Jenny Hutson
    Chairperson
    S8 Limited
    Phone (07) 3233 8820 or 0418 734 554
 
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