Investors + Media Announcements 2008 AusGroup's 1QFY09 Earnings AUD$5.8 million
AusGroup's 1QFY09 Earnings AUD$5.8 million
13 November 2008
- Revenue increased 46.4% to AUD$130.4 million.
- Strong operating cash flow of AUD$33.6 million in the quarter.
- Order book stands at AUD$286 million.
AusGroup today announced its results for the three months that ended 30 September 2008 ('1QFY09').
Financial Highlights |
1QFY09 AUD$'000 |
1QFY08 AUD$'000 |
Change % |
| Revenue | 130,405 | 89,090 | 46.4 |
| Gross Profit | 16,733 | 14,448 | 15.8 |
| Gross Operating Margin | 12.8% | 16.2% | - |
| Operating Expenses1 | 8,161 | 7,481 | 9.1 |
| Operating Profit | 9,099 | 7,137 | 27.5 |
| Operating Profit Margin | 7.0% | 8.0% | - |
| Net Profit Attributable to Equity Holders | 5,802 | 4,926 | 17.8 |
| Net Profit Margin | 4.4% | 5.5% | - |
| Basic Earnings Per Share2 (AUD cents) | 1.5 | 1.3 | - |
| Net Operating Cash Flow | 33,575 | (6,709) | N.M. |
1 Operating expenses comprise of administrative expenses, marketing and distribution expenses and other operating expenses
2 The weighted average number of shares in calculation is the same in both periods at 393.955 million shares
The gross profit for 1QFY09 increased by 15.8% to AUD$16.7 million. However, the gross profit margin declined from 16.2% to 12.8% mainly due to an increase in depreciation charges from the Group’s capital expenditure plans for FY08 and FY09. There was also impact from some lower margin contracts that the Group undertook during the reporting period.
The operating costs increased by 9.1% to AUD$8.2 million for 1QFY09 in line with the revenue growth. The increase was mainly due to increase in employee / recruitment costs and increase in administrative costs in line with the Group’s implementation of several strategic initiatives for improvements in project execution and business performance.
The net profit attributable to shareholders recorded an increase of 17.8% to AUD$5.8 million for 1QFY09. The net profit margin (1QFY08 to 1QFY09) decreased from 5.5% to 4.4% primarily due to some lower margin contacts won and increased investments in capital works, staff costs and management information systems.
Balance Sheet (AUD$'000) |
31 Sept 2008 | 30 Jun 2008 |
| Property, Plant & Equipment | 77,128 | 61,452 |
| Cash & Cash Equivalents | 16,955 | 18,768 |
| Interest Bearing Liabilities | 18,335 | 39,503 |
| Shareholder's Equity | 98,042 | 88,617 |
| Gross Gearing (Debt / Equity) | 18.7% | 44.6% |
| Net Gearing ((Debt - Cash) / Equity)) | 1.4% | 23.4% |
| Net Asset Value Per Share*** (AUD cents) | 24.9 | 22.5 |
3 The net asset value per ordinary share is calculated based on 393.955 million shares for both dates
The capital expenditure for the Group for 1QFY09 was AUD$17.8 million as Cactus Engineering completed its capital expenditure plan to support its business operations in Singapore and equipment purchases for the Group’s Australian operations.
For 1QFY09, a healthy level of net cash was generated from operating activities at AUD$33.6 million. During the 1QFY09, the Group repaid loans, leases and hire purchase of AUD$21.2 million improving the debt ratios. The net gearing has reduced to 1.4% as at 30 September 2008 when compared with 23.4% as at 30 June 2008.
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“We are satisfied with the Group’s performance when compared to our last two quarters. Our strategic plan and business improvement initiatives are starting to Our balance sheet is strong, our strategic plan solid and we continue to build a stronger management team. Looking forward, the global market conditions indicate challenges ahead for our business sector. We shall continue to maintain a vigilant stance as market John Sheridan, CEO and Managing Director, AusGroup Limited |
The order book for the Group as at 30 September 2008, stands at AUD$286 million, an increase of 29% over the order book a year back.
The Group expects some slowdown in activity levels in the mineral resources sectors in Australia for the second half of FY09. However, the Group is cautiously optimistic about its services and operations catering to the oil and gas sector to remain at satisfactory levels.
