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MILTON CORPORATION LIMITED (MLT)

MILTON CORPORATION LIMITED (MLT)

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General Information
Company Name: Milton Corporation Limited
Stock Code: MLT
Website: www.milton.com.au
GICS Sub-Industry: Other Diversified Financial Services
Market Cap ($M): 1,849
Equiv. Shares (M): 122

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 15.200 $ 14.910 $ 15.200 $ 14.750 $ 14.890 14,584 $ 0.310  2.082 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 31st Jul 2008
12 Month Target Price (average): $0
Brokers Surveyed: 1

Company Overview

Business Description:
Milton Corporation Limited (MLT) is an investment company, holding a portfolio of ASX listed shares. Milton also invests in fixed interest securities including mortgages and real property.

Strategy Analysis:
Typical of the 'traditional´ LICs, MLT is essentially a 'buy and hold´ investor, taking quite a long term view when it buys into a company. As noted above, its stated investment approach involves seeking to 'invest in well-managed companies with a profitable history and with the expectation of sound dividend growth.´ The first step in its investment process is to effectively 'screen out´ stocks with an unacceptable profit history, or dividend policies/track records that don´t suggest future dividends are likely to be an acceptable level and growth rate. From there, the team utilises a mix of broker-provided research (relied upon for financial modelling, in particular), its own analysis of company fundamentals and industry background, and contact with company management.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2011  A 89.9 80.3 5.7 20.1 81.0 5.0 100.0
2010  A 71.0 76.0 -8.2 22.8 71.0 4.1 100.0
2009  A 71.8 82.8 -40.8 19.0 78.0 5.0 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F 2009 A 2010 F 2011 F
Challenger (CGF) $1,847 M 0.1261 0.0374 0.0473 7.0270 6.7735 6.4677 0.0488 0.0524 0.0568
IOOF (IFL) $1,273 M 0.1448 -0.0970 0.1136 11.5273 12.7650 11.4629 0.0776 0.0704 0.0738
Milton Corporation (MLT) $1,811 M 0.0568 -- -- 18.5430 -- -- 0.0544 -- --
Macquarie Group (MQG) $9,112 M -0.2667 0.2384 0.2555 12.9214 10.4339 8.3105 0.0536 0.0588 0.0713
Platinum Asset Mgmt (PTM) $2,139 M 0.1281 -0.1448 0.0133 14.4757 16.9258 16.7032 0.0656 0.0528 0.0557

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth
MLT 0.85 18.9 0.94 --
Market 1.12 11.1 0.96 2.31
Sector 0.94 12.3 0.82 3.30

Directors
Name Position Start Date
Mr Kevin John Eley -- 01 December 2011
Mr Francis (Frank) Gerard Gooch Managing Director 07 October 2004
Mr Ian Alfred Pollard Non-Executive Director 06 August 1998
Mr John Frederick Church Non-Executive Director 07 April 1986
Mr Graeme Lindsay Crampton Non-Executive Director 01 June 2009
Mr Robert Dobson Millner Non-Executive Director,Non-Executive Chairman 06 August 1998

Management
Name Position
Allan R Davison Chief Financial Officer,Company Secretary

Substantial Shareholders
Holding Name
8,260,028 (6.70%) Argo Investments Ltd and Associated Companies
6,717,060 (5.45%) Washington H Soul Pattinson and Co Ltd

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