Capilano Honey Limited’s Stock Mounted on ASX After Release of FY18 Results and Takeover Bid from Private Equity Group

Capilano Honey Limited’s - Kalkine Media

Capilano Honey Limited’s (ASX: CZZ) shares climbed up 25.24 per cent on August 13, 2018 after the announcement of FY18 results and the receipt of takeover bid wherein the group has entered into a Scheme Implementation Agreement with Wattle Hill RHC Fund and ROC Capital Pty Ltd for the total consideration of A$189.8 Mn ($138 Mn). Under the scheme, the CZZ’s shareholders will receive A$20.06 per share cash, which represents a premium of 28.2 per cent to its last closing price.

On the financial front, Revenue from ordinary activities increased by 4 per cent and amounted to $138.5 Mn in FY18 as compared the prior year. It was mainly driven by further gains in revenue and volume in both domestic and export retail sales during the same period. However, NPAT declined by 4.9% (Y-o-Y) to $9.8 Mn in FY18, as no tax was attributable to the capital gain on the asset sale in FY17.

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As a result, Capilano achieved a $1.29 Mn positive cash flow after the impact of further increase to its honey inventory of $7.1 Mn. Net debt rose from $7.8 Mn to $11.4 Mn to fund higher inventory levels in FY18 from the prior year. Based on the robust performance, the group’s financial position remains strong with net assets of $68.3 Mn as of June 30, 2018, up by 5.98 Mn on Y-o-Y basis.

Capilano Honey Limited traded at a market price of $ 19.60 with the market capitalization of circa $148.01 Mn (AEST: 02:30 P.M.).

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