Australian corporate tax rate
Oper. Rev. growth of whole group
Oper. Rev. growth of advertising segment
Oper. Rev. growth of communication segment
30%
9.942% 8.547%
3.35% 3.35%
15.574% 12.518%
Income statement
($'000) Actual % of Oper. RevForecast Forecast
2014
2015
2016
214839
222036 229474
Segment revenue from Advertising Production and Media
251434
290592 326969
Segment revenue from Diversified Communications
Total Operating revenue
466273
512628 556443
Operating expenses
Cost of goods sold
45931
9.85% 50497 54813
Employee benefit expense
257122
55.14% 282684 306845
Occupancy costs
24824
5.32% 27292 29625
Depreciation expense
8757
1.88%
9628 10450
Amortisation expense
1247
0.27%
1371
1488
Research, new business and other commercial costs
9163
1.97% 10074 10935
Office and administration costs
15796
3.39% 17366 18851
Compliance,audit and listing costs
9163
1.97% 10074 10935
Finance costs
14190
3.04% 15601 16934
Total operating expenses
386193
424587 460877
Earnings before Interest and Taxes (EBIT)
80080
88041 95566
Interest revenue
711
0.15%
782
848
Interest expense
12458
2.67% 13697 14867
Earnings before income taxes (EBT)
68333
75126 81548
Income taxes
20500
22538 24464
Net income
47833
52589 57083
($'000)
Operating cash flow
Net income
Depreciation
Amortisation
Total operating cash flows
2014
47833
8757
1247
57837
2015
2016
52589
9628
1371
63587
57083
10450
1488
69022
15855
15855
13684
13684
14284
14284
CAPEX
Payment for plant and equipment
Total CAPEX
Change in NWC
Trade and other receivables
Inventories
Other current assets
Trade and other payables
Current tax payables
Provisions
Total NWC
2013
2014
###
###
0 4,877
5,328 7,134
###
###
6,054 4,172
8,239 11,124
###
###
188,310 204,405
5,362
5,820
7,843
8,514
179,077 194,383
4,587
4,979
12,230 13,275
397,410 431,376
Change in NWC
217
35,937
33,967
57837
15855
217
41765
63587
13684
35937
13967
69022
14284
33967
20771
Free Cash Flow to Firm
Operating cash flow
Less CAPEX
Less Increase in NWC
Free Cash Flow Firm (FCFF)
Forecasted growth rate in Total Assets
STW Communication Group Limited and subsidiaries
9.942% 8.547%
Consolidated Balance Sheet
AS AT 30 JUNE 2014
Actual
2013
($'000)
43,271
###
5,328
0
###
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Inventories
Total current assets
Non-current assets
Other Receivables
16,478
Investments accounted for using the equity meth ###
Other financial assets
583
Plant and equipment
33,703
Deferred tax assets
11,130
Intangible assets
###
Other non-current assets
836
Total non-current assets
###
Total assets
###
Current liabilities
Trade and other payables
###
Borrowings
215
Current tax payables
6,054
Provisions
8,239
Total current liabilities
###
Non-current liabilities
Other payables
42,325
Borrowings
###
Deferred tax liabilities
2,642
Provisions
3,059
Total non-current liabilities
###
Total liabilities
###
Net assets
###
Equity
Actual % of TA
Forecast Forecast
2014
2015
2016
($'000)
($'000) ($'000)
19,926
2.1% 21907 23779
###
18.0% 188310 204405
7,134
7843
8514
0.7%
4,877
5362
5820
0.5%
###
223422 242518
13,103
###
706
40,801
14,388
###
2,208
###
###
1.4% 14406 15637
12.8% 133664 145088
776
843
0.1%
4.3% 44857 48691
1.5% 15818 17170
58.4% 610881 663093
2428
2635
0.2%
###
###
4,172
11,124
###
17.1% 179077 194383
10.6% 110843 120317
4587
4979
0.4%
1.2% 12230 13275
27,973
111,864
3,994
3,111
###
###
###
2.9% 30754 33383
11.8% 122985 133497
4391
4766
0.4%
3420
3713
0.3%
822830 893158
1046252 1135676
306737 332954
161551 175358
468288 508313
577965 627363
Issued Capital
Reserves
Retained earnings
Equity attributable to members of the Parent
Non-controlling interests
Total equity
###
27,228
###
###
46,660
###
###
31,361
###
###
55,071
###
33.9% 354530 384832
3.3% 34479 37426
12.3% 128410 139385
517419 561643
5.8% 60546 65721
577965 627363
6.941% 4.972% 3.350%
3.35% 3.35% 3.35%
9.462%
6.046% 3.350%
Forecast Forecast Forecast
2017
2018
2019
237162 245107 253318
357906 379545 392260
595068 624652 645578
58618 58618 61532
328145 344459 355998
31681 33256 34370
11176 11731 12124
1591
1671
1727
11694 12275 12687
20159 21161 21870
11694 12275 12687
18110 19010 19647
492868 514457 532642
102200 110195 112936
907
953
984
15899 16690 17249
87208 94458 96672
26162 28337 29002
61046 66121 67670
2017
2018
2019
61046
11176
1591
73813
66121
11731
1671
79523
67670
12124
1727
81521
14556
14556
15346
15346
15990
15990
218,594 233,768 249,994
6,224
6,656
7,118
9,105
9,737 10,412
207,876 222,306 237,737
5,324
5,694 6,089
14,197 15,182 16,236
461,320 493,342 527,587
Growth rate
($'000)
0.487166 0.411291 0.096912
Forecast Forecast Forecast Forecast
2015
2016
2017
2018
13967 20771 29314 32154
FCFF
Discount rate
1.042 1.083681 1.131366 1.178883
Discounted value 13403.69 19166.81 25909.85 27275.26
Terminate value
384641.3
Intrinsic value 470396.9
Intrinsic price 1.114949
29,944
73813
14556
29944
29314
32,022 34,245
79523
15346
32022
32154
81521
15990
34245
31286
6.941% 4.972% 3.350%
Forecast Forecast Forecast
2017
2018
2019
($'000) ($'000) ($'000)
25430 27195 29083
218594 233768 249994
9105
9737 10412
6224
6656
7118
259353 277356 296608
16722 17883 19124
155159 165930 177448
901
964
1030
52071 55686 59551
18362 19637 21000
709122 758345 810985
2818
3014
3223
955156
0
0
1214508 1298813 1388969
207876 222306 237737
128669 137600 147152
5324
5694
6089
14197 15182 16236
356066 380782 407214
35700
142763
5097
3970
187531
543597
670912
38178
152673
5451
4246
200548
581330
717482
40828
163271
5829
4541
214469
621683
767286
411545
40024
149060
600629
70283
670912
440112
42802
159407
642321
75162
717482
470662
45773
170472
686907
80379
767286
-0.027
Forecast
2019
31286
SGN
SGN
EBIT/Total assets
EGG
EGG
EGG
2009
22.47
0.39
5.37
2010
24.27
0.42
6.78
2011
24
0.42
6.86
2012
23.03
0.42
6.67
2013
22.14
0.44
6.88
2014
18.95
0.47
6.3
107.41
0.84
10.51
106.72
0.7
4.56
39.24
0.93
30
-10.46
0.85
1.38
17.12
1.72
1.72
-0.53
1.63
1.5
2.69
25
20
15
10
5
0
2009
-5
-10
-15
2010
2011
2012
2013
2014
SGN
EGG
2012
2013
2014
