Sharechat Logo

Mad Butcher flags 7 cents dividends in 2014, none for this year

Thursday 28th March 2013

Text too small?

The Mad Butcher franchise business expects to pay a dividend of 7 cents per share in 2014, though nothing will be available in the current financial year.

The company, which is joining the stock exchange via a reverse listing through Veritas Investments, expects to pay between 60 percent and 70 percent of net profit, starting from 2014, according to its offer document.

The meat franchisor is forecasting net profit of $729,000 on $32.3 million in sales in the year ending June 30, rising to profit of $4.2 million on $35.8 million in revenue the following year.

Shell company Veritas is raising up to $25 million through a share offer at $1.30 apiece to fund the $40 million cash and scrip purchase. The acquisition price is below the $42 million to $48 million valuation put on the Mad Butcher by independent adviser Grant Samuel, who said the deal is fair and reasonable to minority shareholders.

The deal will make Mad Butcher owner Michael Morton the biggest shareholder in the company, and he has pledged not to sell any shares until the 2014 results are published.

The Mad Butcher franchise co-ordinates national marketing and product procurement as well as providing support for the individual franchises around the country which collectively generate more than $150 million in annual sales.

The deal has secured debt financing commitments from ANZ, and includes an underwriting agreement from Craigs Investment Partners and sub-underwriting and other equity commitments from existing shareholders, including cornerstone investor Collins Asset Management.

Veritas shares last traded at $1.80.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Asians, men more confident in financial markets than Pacific Islanders, women and poor people
June trade surplus $365M, higher than expected
Govt opts for sweeping review of 'underperforming' RMA
AFT gains Australian registration for intravenous Maxigesic
24th July 2019 Morning Report
Should Fletcher Building persist with Australia?
NZD weaker as greenback gains on news US-China trade talks to recommence
MARKET CLOSE: NZ shares extend gain as Mainfreight, A2 hit new highs
StretchSense directors appoint administrators
NZ dollar falls on news RBNZ is looking at "unconventional" policy

IRG See IRG research reports