Investors + Media AusGroup Continues Earnings Growth to AUD$14.9 million for 9M2009
AusGroup Continues Earnings Growth to AUD$14.9 million for 9M2009
06 May 2009
- A 29% increase in turnover to AUD$360.0 million for 9M2009.
- Strong net operating cash flow of AUD$47.6 million.
- Net cash position in terms of gearing.
- Current order book of AUD$230 million.
AusGroup today announced a modest set of results for the three / nine months that ended 31 March 2009 (3Q2009/9M2009).
Financial Highlights |
3Q2009 AUD$'000 |
3Q2008 AUD$'000 |
Change % |
9M2009 AUD$'000 |
9M2008 AUD$'000 |
Change % |
| Revenue | 99,555 | 77,908 | 28.3 | 360,032 | 279,826 | 28.7 |
| Gross Profit | 15,097 | 13,112 | 15.1 | 47,143 | 44,886 | 5.0 |
| Gross Operating Margin | 15.2% | 16.9% | - | 13.1% | 16.0% | - |
| Operating Expenses* | 8,596 | 17,505 | (50.9) | 26,066 | 32,555 | (19.9) |
| Operating Profit / (Loss) | 6,796 | (4,310) | N.M. | 23,402 | 12,941 | 80.8 |
| PATMI | 4,139 | (3,444) | N.M. | 14,933 | 8,675 | 72.1 |
| Net Profit Margin | 4.2% | -4.4% | - | 4.1% | 3.1% | - |
| Basic EPS** (AUD cents) | 1.1 | (0.9) | N.M. | 3.8 | 2.2 | 72.7 |
| Operating Cash Flow | 14,252 | 22,842 | - | 47,625 | 13,929 | - |
* Operating expenses comprise of administrative expenses, marketing and distribution expenses and other operating expenses
** The weighted average number of shares in calculation is 393.955 million shares
The revenue growth was mainly due to increased activity levels from the Australian business, across both the mineral resources and oil and gas sectors.
The gross profit increased by 5% to AUD$47.1 million in 9M2009 with the gross profit margins down slightly. This was due to the additional cost of sales related to certain lower margin contracts and variation approval timing on several Australian projects, mainly in the engineering division that were not finalised prior to the end of the reporting period. The margins were also impacted by an increase in depreciation charges flowing through from the Group’s now completed capital expenditure program.
The net profit margin was 4.1% up from 3.1% for the period 9M2008. This translates to basic earnings per share of 3.8 Australian cents for the 9M2009.
With improved profitability and better working capital management, the net cash flow from operating activities rose to AUD$42.6 million in 9M2009.
Balance Sheet (AUD$'000) |
31 Mar 2009 | 31 Dec 2009 |
| Property, Plant & Equipment | 85,256 | 87,474 |
| Cash & Cash Equivalents | 21,400 | 10,659 |
| Interest Bearing Liabilities (Short Term + Long Term) | 19,046 | 20,220 |
| Shareholder's Equity | 109,220 | 106,477 |
| Gross Gearing (Debt / Equity) | 0.17 | 0.19 |
| Net Gearing ((Debt - Cash) / Equity)) | Net Cash | 0.09 |
| Net Asset Value Per Share*** (AUD cents) | 27.7 | 27.0 |
*** The net asset value per ordinary share is calculated based on 393.955 million shares for both dates
The cash and cash equivalents on the balance sheet as at 31 March 2009 stood at a healthy AUD$21.4 million. During 9M2009, the Group repaid borrowings of AUD$24.3 million and ended the reporting period with a net cash position in terms of gearing.
Shareholders’ equity as at 31 March 2009 stood at AUD$109.2 million due to the profit contribution from 9M2009 and an increase in the foreign exchange translation reserve as a result of the Singapore dollar strengthening against the Australian dollar.
|
“We have continued to build on our half year results. It is pleasing to see our margins improve over the three quarters of this financial year with both gross margins and net margins improving. This has been achieved against a 23% drop in revenues from our Q2 2009 results. Our focus continues to be on improving the returns to our shareholders. We have a lot of work still to do here, but the results over the last three quarters are encouraging. That said the head winds of the Global Financial Crisis are now buffeting our business. We have been responding to this challenge through internal cost reduction programs and a strong focus on the implementation of our strategic plan, which will continue. Our business model has us well placed across both the mineral resources and oil and gas markets and we are continuing to see some good opportunities in both of these sectors in the medium term." John Sheridan, CEO and Managing Director, AusGroup Limited |
The Group’s order book stood at AUD$230 million as at 31 March 2009.
The Group continues to implement its strategic plan to improve operational performance and the strategy is being progressively implemented.
The Group expects, from time to time, delays in the finalising of variations around certain types of construction projects which can create a degree of variability in the Group’s results from quarter to quarter. The Group’s accounting policy is to recognise costs as they are incurred, which may not match revenue from variations, as these have to be negotiated (sometimes protracted) with clients.
Barring any unforeseen circumstances, the Group expects to remain profitable for FY2009.
