Pioneer Credit Limited (ASX: PNC)
Acquisition of shares by Equity Plan Trust: Recently, Pioneer Credit Limited announced that Pacific Custodians Pty Ltd, a trustee for the Pioneer Credit Limited Equity Incentive Plan Trust (‘Trust’) will acquire fully paid ordinary shares on market for the purpose of satisfying performance rights that will vest on or after 1 July 2018 under the Performance Rights Plan. The Trust shares will be acquired in a manner that will comply with Division 2, Part 7.10 of the Corporations Act which prohibits market manipulation and other market misconduct. Shares will only be acquired at a price which is not more than 5% above the volume weighted average share price, on-market and excluding option exercises, overnight trades and special crossings and will strictly adhere to the Company’s share Trading policy.
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Trend of Return on Investment (Source: Company Reports)
The issue price of the fully paid ordinary shares to be allotted to participants under the Dividend Reinvestment Plan for the fully franked interim dividend for the half year ended 31 December 2017 (calculated at a discount of 2.50% to the 10-trading day VWAP following the record date) amounted to $3.1822 per share and the Dividend was paid on 27 April 2018.
The Company increased its senior debt facility to $130 million to underpin future growth. Stock price was up by 74.2 per cent in the past one year and is trading at a high level and is almost reaching towards its 52-week highest price. Pioneer has primarily produced a healthy 1H18 result with EPS of 13.33 cps, up 57% on the prior period and has increased FY18 NPAT guidance to at least $17m from previously disclosed $16m. While it is executing its innovative debt purchases and working on diversification strategies, the group may need to raise some equity to manage its efforts. Given the trading scenario (while the P/E ratio is 13.93 and dividend yield is 3.33%) and run-up with potential exposed, we put an“Expensive” recommendation at the current market price of $ 3.540.
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