NZX war chest to swell to $76M by 2013, may return capital

NZX’s war chest to swell to $76 mln by 2013, may return capital

By Paul McBeth

March 7 (BusinessDesk) – NZX Ltd., the stock exchange operator, expects to build a war chest of up to $76 million by the end of 2013 and would return funds to shareholders if it finds nothing suitable to buy.

The Wellington-based company forecast its cash flow will grow over the next two years, and expects to have $75 million to $76 million by the end of the 2013 financial year. That includes some $29 million flowing into its coffers from the sale of the TZ1 carbon exchange.

The greater focus on free cash flow comes as the stock exchange operator links its dividend policy to cash flow, and it plans to boost its payment by at least 1 cent per share in the next three financial years.

NZX said it has reined in spending, and is forecasting flat expenses over the coming three years. That will help boost the earnings impact of increased sales, it said.

The shares rose 0.5% to $1.86 in trading today, and have jumped almost 21% this year. The firm posted a 19% gain in full-year earnings as it squeezed more revenue from energy and commodities trading and sales of agricultural information.

The stock exchange operator said it doesn’t have any major projects planned over the coming three years, and any capital expenditure would be to maintain existing infrastructure.

(BusinessDesk)

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