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AMCOM TELECOMMUNICATIONS LIMITED (AMM)

AMCOM TELECOMMUNICATIONS LIMITED (AMM)

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General Information
Company Name: Amcom Telecommunications Limited
Stock Code: AMM
Website: www.amcom.com.au
GICS Sub-Industry: Integrated Telecommunication Services
Market Cap ($M): 213
Equiv. Shares (M): 241

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 0.880 $ 0.855 $ 0.880 $ 0.855 $ 0.860 107,505 $ 0.020  2.326 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 25th Nov 2011
12 Month Target Price (average): $1.09
Brokers Surveyed: 1

Company Overview

Business Description:
Amcom Telecommunications Limited (AMM) provides fibre-based telecommunications services to corporate, government, SME, retail and other telecommunications.

Strategy Analysis:
AMM´s organic growth strategy is focused on client acquisition for its fibre network and the uptake of additional products from existing clients. Bolt-on acquisitions, similar to the acquisition of IP Systems in 2010 will strengthen its product range and services offered. Management will take a wait and see approach for Amnet given the uncertainty over the retail broadband market. Amcom Telecommunications reported NPAT up 50% to $25.85m for the year ended 30 June 2011. Revenues from ordinary activities were $87.19m, up 38% from last year. Diluted EPS was 3.55 cents compared to 2.70 cents last year. Net operating cash flow was $28.67m compared to $20.97m last year. The final dividend declared was 1 cent, taking the full year dividend to 1.6 cents compared with 1.4 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 21.1 8.8 23.7 10.0 5.5 6.3 100.0
2012  F 17.0 7.1 -21.2 12.4 3.5 4.0 100.0
2011  A 21.6 9.0 17.3 7.9 1.4 2.0 100.0
Source: Morningstar analyst 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
Amcom Telecommunications (AMM) $208 M 0.0444 0.0868 0.2250 13.5647 12.4819 10.1896 0.0398 0.0413 0.0522
Chorus (CNU) $974 M -- -- 0.3539 -- 7.6993 5.6867 0.0000 0.0668 0.0860
Telecom NZ (TEL) $3,254 M -0.0466 0.2054 -0.0061 13.7734 11.4266 11.4966 0.0651 0.0787 0.0781
Telstra (TLS) $42,058 M -0.1664 0.0943 0.0389 12.9552 11.8389 11.3958 0.0828 0.0828 0.0828
TPG Telecom (TPM) $1,191 M 0.3311 0.3925 0.1851 14.8662 10.6762 9.0090 0.0300 0.0405 0.0429

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
AMM 0.20 13.2 1.81 0.86 3.45
Market 0.82 12.5 1.38 1.18 1.90
Sector 0.39 12.1 2.26 1.28 1.09

Directors
Name Position Start Date
Mr Christopher John Ferguson Alternate Director (other) 26 February 2007
Mr Clive Stein Chief Executive Officer,Managing Director 28 April 2000
Mr Anthony James Grist Non-Executive Chairman 07 October 1997
Mr Ian K Warner Non-Executive Deputy Chairman 28 March 1994
Mr Peter John Clifton Non-Executive Director 07 October 1997
Mr Craig Evan Coleman Non-Executive Director 07 October 2008
Mr Anthony Charles Gwynne Davies Non-Executive Director 20 October 2003

Management
Name Position
P Riella Chief Executive Officer - Amcom IP Tel Pty Ltd
David Hinton Chief Finance Officer,Company Secretary
M Fiorini Group Executive - Carriers and Wholesale
A Ariti Group Executive - Information Systems
R Whiting Group Executive - Networks and Technology
M Knee Group Executive - Operations

Substantial Shareholders
Holding Name
54,439,543 (7.59%) Wyillie Group Pty Ltd
58,823,530 (10.92%) Osson Pty Ltd
66,524,975 (9.28%) Acorn Capital Limited
45,820,432 (8.50%) AJA Super IW Pty Ltd

Calendar of Events
Date Event
25 September 2012 Report (Annual)
15 August 2012 Report (Prelim)
20 February 2012 Report (Interim)
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