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CUSTOMERS LIMITED (CUS)

CUSTOMERS LIMITED (CUS)

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General Information
Company Name: Customers Limited
Stock Code: CUS
Website: www.customers.com.au
GICS Sub-Industry: Internet Software & Services
Market Cap ($M): 168
Equiv. Shares (M): 135

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
$ 1.245 $ 1.245 $ 1.250 $ 1.245 $ 1.245 2,422,531 0%

Current Broker Consensus Recommendation more
Recommendation: Sell
Recommendation Date: 1st May 2012
12 Month Target Price (average): $1.27
Brokers Surveyed: 3

Company Overview

Business Description:
Customers Limited (CUS) is Australia's leading independent ATM operator. The company operates the nation’s largest ATM network, with more than one in five ATMs nationalwide, and a growing fleet in New Zealand.

Strategy Analysis:
CUS aims to maximise shareholder value by growing the business and extracting benefits from scale, market position and combined services. The overall strategy is to build Australia's leading listed payments business through organic growth as well as via acquisitions. In addition to expanding its traditional ATM business CUS is focused on leveraging its knowledge to developing additional automated services. Customers reported NPAT of $18.8m for the year ended 30 June 2011. Revenues from ordinary activities were $124.4m, up 6% from last year. Diluted EPS was 13.8 cents compared to 13.6 cents last year. Net operating cash flow was $46.08m compared to $47.77m last year. The final dividend declared was 2 cents, taking the full year dividend to 5 cents compared with 8 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 9.7 7.2 43.8 17.4 6.0 4.8 100.0
2012  F 6.7 5.0 -64.0 25.0 4.0 3.2 100.0
2011  A 18.7 13.9 1.2 12.7 5.0 2.8 0.0
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
Carsales.com (CRZ) $1,253 M 0.3189 0.1824 0.1352 21.9672 18.5789 16.3664 0.0371 0.0435 0.0492
Customers (CUS) $168 M 0.0311 -0.6422 0.4378 8.9440 25.0000 17.3883 0.0402 0.0321 0.0402
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
CUS 1.25 21.3 1.00 10.00 1.35
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 John Russell Chief Executive Officer,Managing Director 08 March 2012
Mr Peter Polson Non-Executive Chairman 23 November 2010
Mr Ross M Herron Non-Executive Director 04 October 2010
Mr Ross Burney Non-Executive Director 23 November 2010
Mr Charles Vincent Carbonaro Non-Executive Director 25 August 2006

Management
Name Position
P L Campigli Chief Financial Officer
C Walker Chief Operating Officer
Adam Olding Company Secretary
R Martin Corporate Affairs and Marketing Manager
A wingrove GM Corporate Business

Substantial Shareholders
Holding Name
38,095,946 (28.25%) Taverners Holdings (Aust) Group
17,677,258 (13.11%) Caledonia Investments Pty Limited & its Associated Entities
11,299,031 (8.38%) Renaissance Smaller Companies Pty Ltd
15,841,912 (11.75%) Thorney Holdings Pty Ltd and Thorney Pty Ltd and associated entities

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