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TAMAWOOD Limited (TWD) managing director Lev Mizikovsky has sold more than $900,000 worth of shares in the company, at request from the board as part of a share buy-back scheme.
Mizikovsky, who owns 75 per cent of TWD shares with associated entities, told brisbanebusinessnews.com.au that the board decided on the buy-back as it had $9.3 million spare cash in the bank and wanted to maximise earnings on capital.
“I don’t need the cash that much but it’s what the board wanted,” he says.
“It works out well for me too because the company destroys those shares, and because there’s less shares on the market the earnings per share increases, and it will mean higher dividends.”
Mizikovsky’s recent sale amounts to almost half of the company’s buy-back of 800,000 shares it announced in June.
The company - which most notably runs Dixon Homes - separated its ‘muddled’ structure into separate businesses late last year, including AstiVita Renewables Limited (AIR).
“Since we listed AstiVita Renewables in December it went from $800,000 a year and finished it’s year as an independent company at close to $4 million,” says Mizikovsky.
“Recently we’ve doubled the area covered with our franchise business, sales are not as high as they should be, but we’re working harder to have a much cleaner and more transparent business – we used to have six different companies.”
Mizikovsky expects to record a 19.6 per cent profit increase for FY10 at $11 million, with official results expected to be announced in the next two weeks.
TWD shares remain flat today at $2.50 after a 10c increase yesterday.
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