EstarOnline Ltd

[SCOTTY]

I have received the full year result to 31st March 2011. Even though they have had to abandon their Christchurch CBD premises due to earthquake damage, they have still managed to grow the business and remain profitable. Under the circumstances - an excellent result. To quote from the Chairman's letter:

"The underlying performance of the business continues to improve. Our customer base continues to grow, and their individual investment and spend in this area continues to grow. Revenues improved $535,063 from the previous year with cost of sales up by only $295,419. Gross profit at $910,423, ($670,779 for the previous year), is the best indicator of the underlying financial improvement occurring in the business.

Final reported post tax profit of $245,860 is $105,308 less than previous year. So, despite the top line improvement our bottom line result is less. All this slippage can be explained by responses that the company has had to make in order to remain a going concern. Also, under accounting rules we have had to reflect that our office fit out at Hereford Street has been written down. The fact is that whilst we believe all of this is recoverable in addition some of the other monies spent will also be recoverable under insurance cannot be reflected in this period of reported result.

The most direct impact that this had on shareholders, is that unfortunately we are not able to announce and pay a dividend with this year's result. Whilst the underlying performance would support a dividend, the cash out lay to manage the earthquake events has meant it would be imprudent to pay a dividend.

Australia continues to be our market of focus. The success of clients like Country Road and JB HiFi, (to name two), and our role in their success is something that we can build on. We have recently made a senior appointment to head up our office, based in Melbourne. In addition we are investigating with a number of counterparts the possibility of partnerships in Australia that will give us distribution capability. We of course will keep you updated on any material outcomes that may arise from these discussions."

[percy]

Yes,I agree with you SCOTTY,a very pleasing result.Pleased they had good retained earnings to tide them over.I see the balance sheet, and cash position are in very good shape.

[SCOTTY]

Yes,I agree with you SCOTTY,a very pleasing result.Pleased they had good retained earnings to tide them over.I see the balance sheet, and cash position are in very good shape.

Yes. $515,586 on interest bearing deposit with BNZ plus substancial insurance money still to come.

They are also looking for staff:

- Software Developers X 2
- Business Services - Customer Support
- Technical Support Specialists
- Web Designer
- Business Analyst
- Executive Assistant

All these jobs are advertised on their site; www.estaronline.com

[SCOTTY]

The Christchurch earthquakes can't stop EstarOnline from going from strength to strength. A 1c fully imputed divi on the way next week. Business continues to grow in excess of 20% p.a. with more staff being employed and an office opened in Melbourne. Still only trading at 8c!!

[percy]

The Christchurch earthquakes can't stop EstarOnline from going from strength to strength. A 1c fully imputed divi on the way next week. Business continues to grow in excess of 20% p.a. with more staff being employed and an office opened in Melbourne. Still only trading at 8c!!

Just keeps on impressing me.A good well run business, in the right sector ,at the right time, doing the right things .And as always a fully imputed divie is the icing on the cake.!!!! Very nice.

[SCOTTY]

See on the company web page today www.estaronline.com that there are 500,000 shares for sale @10c. At 10c the capital value would be just over $8m. They are now ex the 1c fully imputed divi.

Cheers

[sailor1]

I have had shares in this little beauty since listing and have acquired most of my holding on an average down basis,
including stumping up I think it was 2 cents some years ago when they were desperate. My average cost is now around
6 cents per share and I've recovered a good % of this via the two divvies, so still holding, watching closely and with high
hopes that this may be the ten bagger, or greater that will finally secure my superannuation. Go Estar

[percy]

Hello sailor1.
Good to know you are on board.Estar have recently increased staff numbers to 43,so I think your superannuation is "well positioned" for further growth.

[SCOTTY]

Hi sailor1 and percy

I see that this is your first post sailor1 so welcome aboard the Sharetrader Forum. It is a very good forum with a number of good posters full of good and useful ideas - not always agreeable!! I have found it very useful when making investment decisions and the discussions have probably saved me from many an investment mistake over the years.

Very pleased to see that you like myself and percy is an Estar holder.

When I first bought into Estar there were only 6 staff in total and now as you point out percy there are 43. Have just looked at their site and see that they are still looking for 2 more staff;

- Ecomerce Sales Consultant
- Business Services - Customer Support

Cheers

[sailor1]

Thanks for the welcome aboard Scotty & Percy. Have followed the share market for over 40 years and have only ever invested money I could afford to lose.
Most of my present holdings are small, low cap speculative stocks and I've always been a keen follower of precious metals, but also look to stocks with good yields.
The 12.5% dividend yield on Estar is fantastic. What do you think the chances are of them going back someday to the main board? This would have to be good for the share price don't you think?

Also hold on ASX: AZM, GDY, KGL [this one looks really good to me]
on NZX: GEL, HGD, CRP, NZE [great yield over the years on this and have had my initial investment at 8 cents well paid back].
Cheers
Sailor