Specialist tele-management and business communication strategies player,
TeleMasters, has announced exceptionally strong returns for the third
quarter. Despite the cash purchase of Motion Telecoms and the payment of a
6c dividend for its half year results, the company remains cash flush, and
shareholders are likely to be happy.
Telemasters is the first company on the Alternative Exchange (AltX) to start
paying quarterly dividends to shareholders. Having listed on the JSE Limited
on 12 March 2007 and 3rd Quarter outstripped its initial performance
forecasts by some distance, the TeleMasters June 2008 third quarter results
reflect ongoing health and capacity for continued growth.
TeleMasters' revenue is up 19%, before tax profit up 18%, after tax profit
up 9% (inclusive of a R698 000 STC tax, which amounts to 16% of total tax
paid by the company). Gross profit is up 5% and EPS up 8.7% to 19.57c per
share. Retained Earnings are up 54%.
"It has been a good period for the company," says Mario Pretorius,
TeleMasters executive chairman. "TeleMasters is offering great value at
current price levels, with a 13,3% dividend yield. Future prospects are also
good – new technologies are being rolled out that will put in place a very
versatile platform able to deliver ongoing efficiencies and cost savings.
Our ISO certification is also pending, which means quality assurance is
becoming more and more of a strength.
"The payment of quarterly dividends has also been very well received in the
market," adds Pretorius. "This innovation has made TeleMasters attractive to
investors, and this position has been reinforced by an exceptionally strong
"With one of the highest Dividend Yields on the JSE, we offer exceptional
Pretorius says that the change in investor climate since the sub-prime
crisis has left many investors wary of investing purely for possible share
price growth. "Quarterly reporting and quarterly payment of dividends is our
way of communicating our performance regularly" he continues, "value
investing and the pursuit of real returns, as in dividends, should be top of
mind for investors."
The TeleMasters board announced a 3c dividend for the quarter, while the
cumulative TeleMasters dividend for 2008 already stands at 9c, compared to a
12c total for the 2007 financial year.