Dec 2007 Financial News

AGL Year End Update

Dec 14, 2007

Agostini’s Limited
(Fiscal Year Ended September 30, 2007)

Agostini’s Limited (AGL) for the Year Ended September 30, 2007 reported Earnings Per Share (EPS) of $1.03, up 27.16 per cent or 22 cents on the corresponding EPS of FY06. Q407 on Q406, the Company’s EPS, however, was down 17.65 per cent or 6 cents from 34 cents to 28 cents.

The Board has recommended a final dividend of 29 cents per share, which will bring the total dividend payable for FY07 to 44 cents (35 cents – FY06). The proposed final dividend will be paid on January 28, 2008 to shareholders on record on December 19, 2007.

AGL’s shares are currently trading at a price of $10.50. We are forecasting an EPS of $1.15 for fiscal 2008, which at the current price translates into a multiple of 9.13 times. Additionally using a multiple of 12 times and the forecasted EPS of $1.15, this share has an expected return of approximately 31 per cent on the current price or a target price of $13.80. While we continue to recommend a BUY on this share, we do caution investors that this share is tightly held with over 75 per cent held by substantial interests. As such acquiring this share may be difficult.

Nancy Chen
Research Analyst