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SAI GLOBAL LIMITED (SAI)

SAI GLOBAL LIMITED (SAI)

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General Information
Company Name: SAI Global Limited
Stock Code: SAI
Website: www.sai-global.com
GICS Sub-Industry: Diversified Commercial & Professional Services
Market Cap ($M): 950
Equiv. Shares (M): 204

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 4.650 $ 4.530 $ 4.710 $ 4.530 $ 4.540 201,508 $ 0.110  2.423 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 15th May 2012
12 Month Target Price (average): $5.318
Brokers Surveyed: 8

Company Overview

Business Description:
SAI Global Limited (SAI) is an applied information services company that helps organisations manage risk, achieve compliance and drive business improvement through its information services, compliance and assurance divisions.

Strategy Analysis:
SAI seeks to be an essential, low cost reference source for companies in relation to industry standards and other legislated codes of practice. The company will also continue to grow its compliance and assurance businesses - natural adjuncts to the core publishing business. Growth will be both organic and via acquisition with a focus on offshore opportunities. Successful execution will leverage ongoing growth in world trade and the associated need for quality control and assurance. Under new management there will be greater focus on cost containment. SAI Global reported NPAT up 32.9% to $44.81m for the year ended 30 June 2011. This result reflects the following factors: robust underlying organic growth across the company's Compliance Services, Assurance Services and non-property Information Services businesses; and a contribution from the acquisition of Integrity Interactive which the company acquired in September 2010. Revenues from ordinary activities were $428.74m, up 9.1% from last year. Diluted EPS was 23.0 cents compared to 21.5 cents last year. Net operating cash flow was $54.63m compared to $51.5m last year. The final dividend declared was 8.0 cents, taking the full year dividend to 14.3 cents compared with 12.8 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2013  F 61.1 29.8 25.1 15.6 18.0 3.9 100.0
2012  F 48.8 23.8 3.4 19.5 15.0 3.2 100.0
2011  A 44.8 23.0 7.1 19.7 14.3 3.1 100.0
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
Brambles (BXB) $9,952 M -0.1010 0.1983 0.2142 20.0358 16.7206 13.7705 0.0387 0.0402 0.0446
Downer EDI (DOW) $1,468 M 0.1845 -0.4179 0.1825 5.2350 8.9929 7.6051 0.0000 0.0058 0.0407
Mineral Resources (MIN) $1,791 M 0.2929 0.0916 0.3307 11.2023 10.2627 7.7125 0.0433 0.0488 0.0648
SAI Global (SAI) $928 M 0.1749 -0.0142 0.2436 18.4178 18.6831 15.0232 0.0315 0.0323 0.0398
Transfield Services (TSE) $1,040 M -0.0759 -0.1702 0.4191 9.6409 11.6183 8.1871 0.0714 0.0578 0.0700

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
SAI 1.09 19.1 2.85 1.78 2.11
Market 0.80 12.1 1.33 1.35 1.68
Sector 0.67 9.99 1.03 0.83 0.51

Directors
Name Position Start Date
Mr Tony Scotton Chief Executive Officer 15 October 2004
Mr Robert Joseph Wright Non-Executive Chairman 01 October 2003
Mr William Peter Day Non-Executive Director 15 August 2008
Ms Anna Buduls Non-Executive Director 01 October 2003
Mr Joran Murray Non-Executive Director 01 October 2003
Mr Andrew Dutton Non-Executive Director (other) 15 August 2008

Management
Name Position
Geoff Richardson Chief Financial Officer
Hanna Myllyoja Company Secretary
Peter Mullins Executive General Manager Property Services
Andy Wyszkowski Global Head Publishing and Compliance
Brett Lenthall Group Chief Information Officer
Andrew Jones Group Director Human Resources
Chris Jouppi Head of Assurance Americas
Duncan Lilley Head of Assurance Europe and Asia Pacific Assurance

Substantial Shareholders
Holding Name
14,342,878 (7.17%) BT Investment Management Limited
22,153,375 (11.08%) Perpetual Limited and subsidiaries

Calendar of Events
Date Event
12 February 2013 Report (Interim)
14 September 2012 Report (Annual)
15 August 2012 Report (Prelim)
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