Tuesday 28 November 2017 by FIIG Research Company updates

Company updates – Capitol Health, Elanor Investors, SCT Logistics, Sunland

This week, SCT Logistics update with FY17 results, Elanor Investors to issue new unsecured fixed rate notes, Capitol Health and Sunland Group annual general meetings with 2018 financial guidance  

Capitol Health FY18 guidance upgrade

On 22 November 2017, Capitol Health Limited (Capitol) detailed its 2018 financial year guidance upgrade at its Annual General Meeting.

Financial performance for FY17

  • Operating revenue of AUD162.5m, up 2.6% or AUD4.1m compared to FY16
  • Core radiology EBITDA of AUD22m before one off restructuring costs
  • Transformation year commenced rebuilding shareholder value

Outlook

  • Strong underlying growth returning to market – 5-6%
  • Victoria expected to continue to grow at 5-6% during FY18
  • More stable regulatory environment
  • Return to net profitability in FY18
  • Strong organic and acquisitive growth opportunities
  • Robust balance sheet to support growth
  • Intention to pay dividends in 1HFY18 (subject to corporate and regulatory considerations)
  • Reduced interest costs through note refinancing/repayment
  • Renewed clinic focus 

Strategic investments

  • Joint venture with CITIC and Zhouxin – Capitol to contribute circa AUD600,000 for 30% stake in JV, CITIC to hold 60% and Zhouxin to hold 10%
  • Enlitic continue to make major breakthroughs in applying Deep Learning to diagnostic imaging. Currently considering opportunities to crystallise value for Capitol

FY18 guidance upgrade

  • FY18 full year guidance upgraded

  • High operational leverage and cost reductions drive EBITDA margin growth from FY16/17~13% to FY18~18%+
  • More robust market growth than expected. Revenue growth in first four months ~ 5% year on year
  • Assumptions:
    • Including revenue AUD8.6m and EBITDA AUD1.3m from two months’ contribution from NSW operations
    • Including three new clinic openings – benefit realised through FY19
    • Acquisition pipeline not included in guidance
  • FY18 interim dividend expected, share buyback on hold to take advantage of acquisition opportunities

For the full presentation, please visit the Capitol Health website

New issue from Elanor Investors 

On 28 November 2017, Elanor Investors Limited (the “Issuer”) announced the issue of AUD20m unsecured fixed rate notes (Notes) with a final maturity of 17 October 2022, paying a fixed interest rate of 7.10%pa. The Notes are to be consolidated and form a single series with the Issuer’s existing AUD40m unsecured fixed rate notes due 17 October 2022, issued on 17 October 2017.

Elanor Investors Group (Elanor) is an Australian real estate funds management group with over AUD1bn of retail, office and hotel, tourism & leisure investment properties under management or on balance sheet. Listed on the Australian Stock Exchange (ASX: ENN) since July 2014, Elanor has a current market capitalisation of approximately AUD190m. Elanor invests directly in various property opportunities as well as indirectly via co-investments in the property funds that they manage. Since listing, Elanor has grown its total funds under management and balance sheet investments from AUD173m to over AUD1bn.

SCT Logistics – update after FY17 results

We have provided an update on SCT Logistics after the release of FY17 results.

The link to the full update is available here. Note the content requires a FIIG login.

Sunland provides FY18 earnings guidance

On 22 November 2017, Sunland Group Limited (Sunland) provided earnings guidance for the 2018 financial year of between AUD27m and AUD30m net profit after tax ahead of its Annual General Meeting in Brisbane.

The guidance for FY18 reflects the cyclical nature of the property market, and a number of projects scheduled to settle on the cusp of the financial year end, while increasing the core dividend profile. Sunland Managing Director, Sahba Abedian, said, “Sunland enters FY18 in an active phase of delivery, with 14 residential projects under construction in Queensland, New South Wales and Victoria … Furthermore, the Group intends to launch up to eight new projects in the year ahead, with a combined end value of AUD1.4bn.”

The group’s national development portfolio comprises 6,270 residential lots, retail, and commercial assets with a total end value exceeding AUD4.7bn.

For the full presentation, please visit the Sunland website under ASX Announcements. 

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