Bendigo and Adelaide Bank Ltd
(ASX:BEN) has announced a $300 million capital raising to help strengthen the bank’s capital base, after posting a big drop in full year earnings.
The bank says it plans to raise $173 million via an entitlement offer to retail shareholders and eligible institutional shareholders, and $127 million through a placement of shares to selected sophisticated and institutional investors.
The offer price is $6.75 a share, a 17 per cent discount to the banks last traded price.
The company also posted a 57.7 per cent fall in net profit for the full year to $83.8 million this morning, down from $189.1 million the year before.
Bendigo and Adelaide Bank says earnings were hurt by a slowing economy and global recession, an unprecedented drop in official cash rates and increased funding costs. Bendigo and Adelaide Bank’s 2008 net profit was its best in five years.
Building and Industrial products company Crane Group Ltd (ASX:CRG) has reported a 28.4 per cent fall in full year net profit, and says it expects conditions to remain difficult.
Net profit after tax for the 12 months to June 30 came to $43.6 million down from $60.8 million recorded in the previous year.
Net profit before significant items fell 11.6 per cent to $56.4 million inline with guidance, while revenue dropped 9.9 per cent to $2.1 billion.
Crane says conditions for the coming financial year are expected to be at least as difficult as those experienced over the past year.
However, unless sales demand during the year improves, the company says it appears unlikely that full year 2010 profit after tax before significant items will exceed that of full year 2009.
Crane declared a fully franked final dividend of 28 cents per share. Taking a look back over the past five years Crane Group has posted inconsistent results.
Premier Investments Ltd (ASX:PMV) has today issued a profit upgrade after its wholly owned subsidiary Just Group reported better than expected sales for the full year.
The investment company says it now expects its fiscal 2009 profit before tax to be between $106 million and $108 million.
Premier says sales for the full year to July 25 for Just came to $845 million, up 4 per cent on the year before, with same store sales down 1.6 per cent.
The company says Just’s fiscal 2009 earnings before interest, tax, depreciation and amortization was previously forecast to be 10 per cent lower than fiscal 2008, however given the higher sales performance it is now forecast to be between two and four per cent higher.
Premier says Just’s earnings before interest, tax, depreciation and amortization contribution to the company is expected to be within the range of $94 million to $96 million. Looking back over the past five years, 2007 was by far the company’s best result.
