MNF Group Offers Share Purchase Plan To The Shareholders To Reduce Debt And Improve Working Capital

  • Oct 19, 2018 AEDT
  • Team Kalkine
MNF Group Offers Share Purchase Plan To The Shareholders To Reduce Debt And Improve Working Capital

The specialist from the Board of Australian communications of the MNF Group (ASX: MNF) is pleased to offer the purchase up to $15,000 in MNF shares under a Share Purchase Plan (SPP) to the shareholders of the company. Those shareholders have a registered address in Australia and New Zealand and are on MNF share register at close of business on 18 October 2018 will be considered eligible for this plan. These eligible shareholders will have an opportunity to purchase the shares at a discount of 3.3% on the prior five-day volume weighted average price (VWAP) of $4.55. These eligible shareholders will be able to purchase the shares at $4.40 per share instead of $4.55. From these raised funds, the company has decided to reduce the debt and improve the working capital. The window of this Share Purchase plan will open on Thursday, 25 October 2018 and will close on Thursday 8 November 2018. The SPP offer booklet along with the application form will be sent to all eligible shareholders and will also be lodged with ASX on 25 October 2018. During this period of SPP, there will be no further placement of shares. Also, these SPP are not underwritten.

For the period ended 30 June 2018, the revenue increased to $221 million which represents that it increased by 15% from the previous year. There was an increase in the gross margin by 18% as compared to the previous corresponding period which represents $69 million. The EBITDA has also gone up by 3%. This marginal rise was due to completion of investment into Pennytel brand launch worth $2.3 million. There was a small decrease in the net profit after tax which was impacted by the increase in the Group’s marginal tax from 27% to 29% this FY18 and also Pennytel’s brand launch. 

From the past one year, the performance of the company is negative. However, if they see the performance of the company in the past 5 years and 10 years, the results are positive. Throughout its journey, the performance of the company is 7400%. The 5 years and 10 years performance of the company is 223.74% and 5525% respectively. The YTD performance of the company is -18.33%. The YTD performance of the company is -32.63%.

The current market price of the company is A$ 4.38 (AEST 1:05 pm) with a market capitalization of A$329.9 million and PE ratio of 27.69x. If we see the chart, on 05 October 2018 the Bollinger band got narrowed which represents a strong momentum of prices to either go up or down. On 12 October 2018, we see that the moving average convergence and divergence line (MACD line) has cut the signal line from the top and has gone in a downward direction. The MACD line is still seen moving below the signal line in the downwards direction indicating the bearish nature of the price.

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