Cabletalk hunts further takeover targets

Telecommunications firm Cabletalk is on the hunt for further acquisitions after snapping up Auckland security business Fort Lock Security last month.

Managing director Peter Wilson told shareholders at the company's annual meeting that Cabletalk is "looking at acquiring associated businesses" that fit with its core strengths.

"We are still in acquisition mode, but once again this will be a patient process," he said, adding that Cabletalk had "kicked a lot of tyres" before settling on the Fort Lock purchase.

Fort Lock is one of the largest electronic security and surveillance companies in the country. Mr Wilson said security was a growing business, picked by industry insiders to grow at 20 per cent per annum. The purchase, for an undisclosed sum, was immediately earnings positive.

Mr Wilson said revenue in the current year would be below last year's level, but at an ebitda (earnings before interest, tax, depreciation and amortisation) level the firm expects to be ahead.

Cabletalk's ebitda for the year to March 31, 2005 rose by 160 per cent to $2.81 million.

The company closed the year with a strong balance sheet and no debt.

Shares in Cabletalk were unchanged at 78c this morning, against a year high of 80c and a low of 31c.

- NZPA