BigAir – The growth story continues, on track for maiden dividend (BGL)

BigAir posted their HY12 numbers today, and even though I’m a true believer, I was still impressed by BigAir’s excellent result.  Let’s review:

Revenue up 115% to $10.97M

EBITDA up 161% to $4.57M

NPAT up 211% to $1.97M

Cashflow up 57% to $3.78M

 

Additionally, as at December 31, BigAir’s cash reserves sat at $4.1M.  More exciting news is that management has confirmed the business is currently on target to pay a maiden dividend at full year.  If you look at October’s EBITDA run rate of $850k, you can see even if the company doesn’t sell a thing in the intervening period, BGL will post a full year EBITDA of $9.67M – well above the FY12 guidance of $9M.  Given the synergies yet to be realised, coupled with anticipated growth, and I’d expect to see FY12 EBITDA of at least $10.5M and more likely above $11M.  The full-year impact of opex reductions, coupled with some off-net contracts expiring in FY13, means continuing upside for shareholders.

 

Future years should see less of a capex requirement for BigAir, so it makes sense that the company is beginning to pay out dividends.  I’m 98% certain that we’ll see at least 1c for full year – given there is a $4M hurdle, and my modelling predicts an NPAT of $4.7M, it would take a pretty big disaster to spoil the end of year party for BGL shareholders.