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ASG GROUP LIMITED (ASZ)

ASG GROUP LIMITED (ASZ)

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General Information
Company Name: ASG Group Limited
Stock Code: ASZ
Website: www.asggroup.com.au
GICS Sub-Industry: Internet Software & Services
Market Cap ($M): 154
Equiv. Shares (M): 172

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 0.895 $ 0.895 $ 0.910 $ 0.890 $ 0.895 209,002 0%

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 29th Feb 2012
12 Month Target Price (average): $0.903
Brokers Surveyed: 3

Company Overview

Business Description:
ASG Group Limited provides technology applications and business systems integration to government agencies and private companies nationally. The company is a certified partner with many vendors, such as HP, Oracle, Microsoft and Redhat.

Strategy Analysis:
ASZ have made significant progress towards the objective of expanding the Company and broadening its service offerings. The plans called for entry into the SAP market with our traditional services as well as rapidly gaining capability in Business Intelligence and Consulting services. ASZ is alert for an opportunity for one or more acquisitions or mergers to lift them into a size range which will allow them to capture more significant business from multinational IT Services organisations. The huge proportion of IT Services businesses held by foreign companies is mainly a function of the lack of suitably large, genuinely capable, viable Australian players to provide serious competition at the top end of this market. The end objective of ASZ's current strategy is to provide Australian clients with that alternative. . ASG Group reported NPAT up 28% to $15.69m for the year ended 30 June 2011. Revenues from ordinary activities were $153.49m, up 27% from last year. Diluted EPS was 0.0965 cents compared to 0.0867 cents last year. Net operating cash flow was $19.64m compared to $15.88m last year. The final dividend declared was 5.5 cents, taking the full year dividend to 7.5 cents compared with 6.5 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 17.5 9.9 8.8 9.0 7.5 8.4 --
2012  F 15.7 9.1 -6.2 9.8 7.5 8.4 --
2011  A 15.7 9.7 11.5 12.3 7.5 6.3 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F 2011 A 2012 F 2013 F
ASG Group (ASZ) $154 M 0.1130 -0.0549 0.0888 9.2746 9.8136 9.0131 0.0838 0.0838 0.0838
Carsales.com (CRZ) $1,253 M 0.3189 0.1824 0.1352 21.9672 18.5789 16.3664 0.0371 0.0435 0.0492
SMS Management and Tech (SMX) $337 M 0.0491 0.0351 0.1204 11.5222 11.1312 9.9354 0.0610 0.0630 0.0691

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
ASZ 0.62 9.76 1.39 6.78 0.95
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.76 11.6 1.55 1.53 1.00

Directors
Name Position Start Date
Mr Ronald Baxter Chairman 30 January 1996
Mr Geoff Lewis Chief Executive Officer,Managing Director 27 June 2003
Mr John Roland McConnell Non-Executive Director 21 November 2005
Mr Trevor L O'Hoy Non-Executive Director 01 September 2010
Hon Ian Gordon Campbell Non-Executive Director 12 June 2007

Management
Name Position
D Langenbach Chief Financial Officer
Peter Patrick Torre Company Secretary
S Tull General Manager - Marketing and Effectiveness
Murray Rosa General Manager - Sales & Delivery
Gerald Strautins General Manager - Strategic Business Solutions

Substantial Shareholders
Holding Name
11,424,599 (6.76%) Michele Mary Thomas and Stephen Norman Tull
8,718,968 (5.18%) ING Group
8,505,939 (5.06%) Australia and New Zealand Banking Group Limited
8,498,552 (5.60%) Celeste Funds Management Limited (formerly Souls Funds Management Limited)
12,648,192 (7.48%) Northcape Capital Pty Ltd
14,418,752 (8.77%) Geoffrey James Lewis

Calendar of Events
Date Event
26 February 2013 Report (Interim)
16 August 2012 Report (Prelim)
16 August 2012 Report (Annual)
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