upgarded to strong buy, page-5

Results are actually due out tomorrow morning.

Look for EBITDA of circa $95m, and NPAT of $55m, with a final dividend declared at 8.0 cents per share.

That would place the stock on a trailing P/E multiple of 13.5x, an EV/EBITDA multiple of 8.3x and a dividend yield of 4.8%.

Including the $76m, 4.5x EV/EBITDA multiple, Broadsword acquisition, which was completed on 3 July 2013, the pro forma valuation multiples are:

P/E = 12.1x
EV/EBITDA = 7.3x, and
DY = 5.4%

Even after the first consideration tranche paid for Broadsword ($49m), SKE's balance sheet will remain in pristine condition, with NIBD-to-EBITDA < 1.0x, and EBITDA-to-Net Interest around 11.5x