PYMBLE, NSW, 26 October 2015 – Office Brands provided its shareholders with a special dividend following its announcement of an after tax profit of $310,029. In presenting the company’s full year results at its Annual General Meeting on the Gold Coast yesterday, Chief Financial Officer Tullio Cofrancesco said the result for the year indicates another solid financial performance, reflected in its distributions to licence holders and the special dividend paid to shareholders.
The special dividend of $2.10 per share, represents a return to shareholders of the excess cash accumulated from the sale of the company’s property during the financial year. While it is a “special dividend”, the payment represents a notional yield, or return on shareholder funds, of over 11.6%.
Mr Cofrancesco said: “The Financial Report shows the company is in a position to provide its shareholders with an appropriate return on funds invested, to continue its growth and provide its licensees with ever increasing initiatives that strengthen and grow their businesses.”
Consistent growth, improving cashflows, a sound Balance Sheet and greater compliance by group members, allowed Office Brands to make compliance distributions of over $1.28M for the year ended 30 June 2015. Including the distribution of volume rebates, the group’s licensees received over $6.3M in rebate distributions in the last year, another record distribution to its members.
Mr Cofrancesco said: “The significant distributions in the past year reflects the company’s core vision and values; that is, providing for its main customers – the licensees of the business.”
While revenues experienced considerable pressure amid tight and challenging trading conditions, overall revenues showed a modest increase, with rebate and advertising revenues achieving 4% growth. Effective cost management allowed also the company to achieve a significant reduction in direct costs, so that it experienced growth in its gross profit.
Mr Cofrancesco said:”Effective management of the company’s overheads allowed an increase in our operational spending to improve and upgrade our technology and e-commerce capabilities, as well as expand member engagement services provided directly to licensee stores.”
Chief Executive Officer Gavin Ward added: “The growth in rebate and advertising revenues and the reduction in overall costs, resulted in the company’s ability to make the record distributions, return a healthy profit and declare a special dividend.”
The company’s commitment to strengthening its balance sheet results in its net equity increasing to over $1.7M at 30 June 2015, or an increase of 14% compared 2014. The financial measures applied by the directors of Office Brands, means that in the last year the company achieved its aim to extinguish all bank debt and remove all borrowings from its balance sheet.
The company’s cash reserves and financial assets improved significantly over the past five years, growing by over $1.13M in the last year (or over 89%). Mr Cofrancesco said the improvement in operating cashflows assisted the company reduce its reliance on financing activities to provide liquidity and allowed the company the flexibility to bring forward compliance rebate payments into the 2015 financial year.
Fundamentally, the company remains focused on delivering value to both its customers and its shareholders. The company considers that achieving a balance between value to members and returns to shareholders is critical, as not all shareholders are members and not all members are shareholders.
Mr Cofrancesco said: “Overall, our financial performance balances continued growth in shareholder wealth, evidenced a solid balance sheet capable of responding to opportunities, while delivering a suite of initiatives that strengthen our licensee businesses.”
Office Brands Limited is Australia’s largest and most successful independent office products buying group, offering unbeatable marketing, procurement, support and services designed to improve the long term profitability of its members, creating a unique level of service and capability for their customers.
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If you would like more information about this topic, please contact Tullio Cofrancesco at 02 8599 6866 or email at email@example.com.