Sanford delivers improved results before IWL buyout
Sanford Limitedhas reported continuing positive operating cash flows for the quarter to December 2002, asIWLmoves forward with its bid to buy out the online broking group.
While earnings before tax and interest rose to $156,000 from $80,000 in the previous quarter, Sanford still recorded a net loss of $75,000. However this represented a significant improvement on the $147,000 for the previous quarter, with the results for the six months to December 2002 representing a 60 per cent improvement on the same period in 2001.
Sanford’s revenue was slightly stronger at $5.4 million, and cash reserves were increased to $3.1 million from $816,000 the previous quarter.
IWL contributed $1 million to Sanford’s cash coffers when it raised its stake in Sanford to 20 percent, up from 10 percent. This move preceded the formal launch of IWL’s bid to take over the remainder of the group.
IWL has offered Sanford shareholders either one IWL share or $0.19 for each Sanford share, with the offer closing on March 21.
If the takeover is successful, IWL plans to incorporate Sanford’s online broking service into its financial planning software, Visiplan.
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