EXCELSIOR CAPITAL LTD — Earnings Release 2019

Aug 27, 2019

Excelsior Capital Limited ABN 98 050 542 553 18-20 Railway Road, Meadowbank, NSW 2114, Australia Telephone: (02) 9807 6155 Facsimile: (02) 9808 4155

28 August 2019

ASX RELEASE

Excelsior Capital Limited (ASX: ECL)

Investment and electrical components business Excelsior Capital Limited (ASX: ECL) today announced a net profit after tax of $4.1 million for the twelve months ended 30 June 2019, down 2% to the previous corresponding year.

The Board declared a final dividend of 3.0 cents per share, fully franked, remaining unchanged from the prior year.

FY19 Results Summary	FY19	FY18	Change
Revenue ($m)	59.3m	48.5m	up 22%
Investment income ($m)	0.5m	0.7m	down 30%
Statutory net profit after tax ($m)	4.1m	4.2m	down 2%
Earnings per share (cents)	14.3c	13.5c	up 5%
Return on equity (%)	8.7%	8.6%	up 0.4%
Cost to income ratio (%)	20.4%	23.4%	down 13%
Final dividend per share (cents)	3.0	3.0	Flat

Revenue was $59.3 million for the year which resulted in a statutory net profit of $4.1 million which was down 2% for the year. Export sales to Mongolia and Indonesia were in line with the previous year.

The relocation of the two Sydney plants has been delayed by two years due to the extension of the current lease arrangement being exercised in April this year. The relocation will now potentially take place in 2021.

Outlook

There continues to be pressure on margins as the mix of sales changes with revenue growth coming from lower margin cable sales. The Directors expect low single-digit growth in revenue.

With the current economic uncertainty and the potential for a slowdown in both the US and China the company has moved most of its investment portfolio to cash.

Share buy-back

The company successfully completed the off-market share buy-back of ordinary fully paid shares in Excelsior that was announced on 23 August 2018.

Under the terms of the buy-back, the Company bought back 2,372,902 shares, being approximately 7.56% of Excelsior’s issued capital, at a price of $1.44 per share for a total of $3,416,979. Payment for shares bought back was made on 23 November 2018.

The Share Buy-Back was funded from existing cash and the company continues to maintain a strong debt free balance sheet and capital position following the buy-back.

Michael Glennon Director

About Excelsior (ASX: ECL): Excelsior is a listed Investment Entity, originally established in 1991, and listed on the ASX in 1993. Excelsior Capital Limited’s operations comprise the design and distribution of electrical components and cables for resource and infrastructure applications through its Electrical Division and a substantial investment portfolio.