Supply Network Forecasts $19.8m Profit, Declares 32c Interim Dividend
Supply Network Limited projects a solid half-year profit of $19.8 million and announces a fully franked interim dividend of 32.0 cents per share, signaling steady financial health ahead of its full results.
- Half-year sales revenue of $171 million
- Expected profit after tax around $19.8 million
- Includes $0.4 million profit from Christchurch property sale
- Fully franked interim dividend declared at 32.0 cents per share
- Dividend Reinvestment Plan operating with 2.5% discount and $32 cap
Solid Half-Year Performance
Supply Network Limited (ASX: SNL) has provided an earnings forecast for the half-year ending 31 December 2024, revealing a robust financial position. Based on unaudited management accounts, the company expects consolidated sales revenue of $171 million and a profit after income tax (PAT) of approximately $19.8 million. This figure includes a modest $0.4 million gain from the disposal of its Christchurch property, underscoring the company’s ability to generate value from its asset portfolio.
Dividend Declaration and Shareholder Returns
In line with its earnings forecast, the board has declared a fully franked interim dividend of 32.0 cents per share. The dividend record date is set for 21 March 2025, with payments scheduled for 4 April 2025. This payout reflects Supply Network’s commitment to returning value to shareholders while maintaining a balanced capital management approach.
Dividend Reinvestment Plan Details
The company’s Dividend Reinvestment Plan (DRP) will be active for this interim dividend, allowing shareholders to reinvest their dividends into additional shares. Participants in the DRP will receive shares at a 2.5% discount to the volume weighted average market price during the five business days following the ex-dividend date. Notably, the DRP market price will be capped at $32.00 per share, providing a price ceiling that could benefit reinvesting shareholders if the market price rises above this level.
Looking Ahead to Final Results
While these figures are based on unaudited accounts, the company plans to release its final half-year results in late February 2025. Investors will be keen to see how the final audited numbers compare and whether the company can sustain or improve its profitability amid evolving market conditions. The steady dividend and positive earnings forecast suggest Supply Network is navigating its sector with confidence.
Chief Financial Officer Robert Coleman authorised the announcement, emphasizing transparency and shareholder engagement as the company moves forward.
Bottom Line?
Supply Network’s steady earnings and shareholder-friendly dividend set the stage for a closely watched final result.
Questions in the middle?
- Will the final audited results confirm the $19.8 million profit forecast?
- How will Supply Network’s asset sales strategy evolve after the Christchurch property disposal?
- What impact will the DRP price cap have on shareholder participation and share price dynamics?
