Adelaide Brighton accepts the nomination of Rhonda Barro made by its major shareholder Barro Properties Pty Ltd to join the ABC’s Board. The election for new Director to the Board is scheduled to be held at the Adelaide’s Annual General Meeting due on 10 May 2019.
Ms. Rhonda Barro is an Executive Director at the Barro Group, a fully integrated manufacturer and supplier of premixed concrete, quarry products and a range of associated products. The Barro Properties and its associates hold majority stakes in Adelaide Brighton Limited (ASX: ABC) that accounts to the relevant interest of 43% of the Adelaide’s issued capital.
Two of the existing Adelaide’s Directors are nominees of Barro Properties. Moreover, the company informed that two of the current independent non-executive Directors are required to retire and, if willing, seek re-election at the AGM, in accordance with its constitution. But if the new Director is appointed and the independent Directors standing for election are not re-elected, the Board will no longer consist of a majority of independent Directors.
But as per regulatory requirements, Adelaide is required to maintain the majority number of independent Directors on the Board. For this purpose, the company is reportedly in talks with Barro Properties in order to discuss Board composition and any appropriate governance protocols in the lead up to the AGM.
For the Fiscal Year ended 31 December 2018, Adelaide announced the revenue of $1,630.6 million, reflecting an increase of 4.6% underpinned by the strong demand across the residential, non-residential and infrastructure sectors. NPAT increased by 1.4% to $185.3 million, while EBIT of $265.4 million was 0.8% lower than 2017.
The management stated that “During 2018, Adelaide Brighton witnessed a strong East coast construction markets, Northern Territory and South Australia were flat and Western Australia was down, while lime demand from the resources sector was stable.”
On the back of higher income, basic earnings per share increased 1.4% to 28.5 cents. Further, the dividend declared by the Board for 2018 was 14% higher on previous corresponding period, amounting total 28 cents inclusive of a fully franked final dividend of 11.0 cents and a special dividend of 4.0 cents.
Adelaide Brighton CEO, Nick Miller, stated that increased revenue in 2018 underscores the company’s capitalising on the favourable demand environment for lime and construction materials as well as the delivery on expectations for the concrete and acquisitions made in 2017.
The Group concluded the fiscal year with a healthy balance sheet including net debt to equity gearing of 34.1%, operating cash flow up by 9.1% to $244.7 million, and a leverage ratio of 1.2 times.
ABC stock price declined by 2.737% to trade at $4.620 on 5 March 2019 (2:35 PM AEST). The stock is currently trading at a Price to Earnings multiple of 16.670 x with a market capitalisation of $3.09 billion.
Over the past 12 months, the stock has fallen 28.94% including a negative price movement of 7.41% witnessed in the past three months.
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