Feb 2008 Financial News

AGL Releases First Quarter Results (Q108)

Feb 22, 2008

Results for the First Quarter Ended December 31, 2007

Earnings Per Share
Agostini’s Limited (AGL) for the First Quarter Ended December 31, 2007 reported Earnings Per Share (EPS) of 30 cents, up 7.1 per cent or 2 cents on the corresponding EPS in fiscal 2007.

Financials
Q108 on Q107, Turnover increased from $126.6 million to $147.3 million, up 16.4 per cent or $20.8 million. According to the Chairman, AGL’s businesses in the Trading sectors performed well. However, Agos Lighting continued to be challenged by weak US orders, but is expecting improvements in the months ahead. Operating Profit for the period amounted to $12.3 million, up 5.7 per cent or $0.7 million from $11.6 million in Q107. Net Finance Costs rose 7 per cent or $0.08 million to $1.2 million. Thus, Profit Before Taxation ended the period at $11.1 million, up 5.6 per cent or $0.6 million. Profit After Tax for Q108 totalled $7.8 million, an increase of 2.4 per cent or $0.2 million on Q107.

Recommendation
AGL’s shares are currently trading at a price of $10.00. We have forecasted an EPS of $1.15 for fiscal 2008 which at the current price translates into a multiple of 8.7 times. Additionally using a multiple of 10 times and the forecasted EPS of $1.15, this share has an expected return of approximately 15 per cent on the current price or a target price of $11.50. 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
WISE Equity Research Team