With the opening of market on 30 November 2018, the market price of the share was A$1.10. It went as low as A$1.04 which is also the closing price for the day. At present, it is into a pending status after the buy-back announcement.
Redcape Hotel Group (ASX: RDC) made an announcement regarding market buy-back of 25,439,607 RDC stapled securities which is equivalent to 5% of the stapled securities as per the Product Disclosure Statement dated 1 November 2018 (PDS). The company is going to purchase only the stapled securities which are equal to $1.13 or less under On-market Buy-back. The board members will make any decision related to the On-Market buy-back of shares at a relevant time. Also, the announcement highlights that there will be no guarantee that the company will buy-back the shares even if the price of the share falls below A$1.13.
It is expected that the On-Market buy-back of shares will begin from 14 December 2018 and will come to an end by 29 November 2019. It also highlights that the company will try to buy back 25,439,607 RDC stapled securities during this period. The pricing of these stapled securities will be within the range of ASX listing rules.
As per the aggregate financial statement of the company from 13 June 2017 to 30 June 2018, the company made a net profit of A$1.436 million. The company maintains a healthy balance sheet. The net asset of the company is $559.285 million which indicates that the company is in a position to clear long-term obligations. The company holds total current asset of $48.860 million and total current liabilities of A$41.134 million which indicates that the company is in a position to clear its short-term obligations as well as meet the net working capital. The total shareholder’s equity is worth A$559.285 million.
From the operating activities of the company, the net cash inflow was A$48.408 million. Under this category, the main source of cash inflow was due to the receipts from the pub operations. Simultaneously, there was a cash outflow in the form of payment made to the suppliers and the employees.
From the investing activities of the company, the net cash outflow was $813.842 million. Under this category, the main source of cash outflow was due to the acquisition of a business made by the company. The other major source of cash outflow was due to payment made for property, plant, and equipment. From the financing activities of the company, there is a net cash inflow of A$800.489 million. Under this category, the company made repayment of the borrowings and also paid interest. The net cash available with the company at the end of the period was A$35.055 million.