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Savor's banking partner ANZ has given approval for the listed hospitality group to pay a dividend.
ANZ stress tested Savor's target leverage forecast and agreed it would be reached by the end of the 2026 calendar year.
When the group’s gross leverage hits the expected ratio of 1.5x, the bank has agreed Savor can pay a dividend of 2 cents per share in January next year.
Revenue for the year ended March 31 2026 is expected to range between $55 million and $56m, while operating earnings for the same period are expected to range between $7m and $8m.
The group has forecasted operating earnings in the 2027 fiscal year to range between $9m and $10m.
Continued cost out initiatives and debt repayments has led to an improved cash flow throughout the year, and Savor does not expect to use its overdraft facilities. It would consider reducing its facility in future.
Savor continued to seek growth opportunities where they presented high value, low capital cost returns.