Investors + Media Announcements 2009 AusGroup delivers record earnings of AUD$21.9 million for FY2009
AusGroup delivers record earnings of AUD$21.9 million for FY2009
18 August 2009
- Earnings surged 52% against an increase of over 26% in turnover to AUD$478.2 million
- Robust net cash flow of AUD$63.1 million from operations
- Strong balance sheet with a net cash position gearing wise
- Current order book of AUD$403 million as at 31 July 2009
AusGroup Limited today announced strong earnings growth for the twelve months ended 30 June 2009 ('FY2009').
Financial Highlights |
FY2009 AUD$'000 |
FY2008 AUD$'000 |
Change % |
| Revenue | 478,191 | 378,980 | 26 |
| Gross Profit | 71,482 | 48,200 | 48 |
| Gross Profit Margin | 14.9% | 12.7% | - |
| Other Operating Income | 3,643 | 1,961 | 86 |
| Impairment Expenses | 4,067 | 0 | - |
| Operating Expenses | 35,147 | 28,445 | 24 |
| Net Profit Attributable to Equity Holders | 21,857 | 14,372 | 52 |
| Net Profit Margin | 4.6% | 3.8% | - |
| Basic Earnings Per Share* (AUD cents) | 5.5 | 3.6 | 53 |
*Weighted average number of 394,765,000 ordinary shares in FY2009 (FY2008: 393,955,000)
Increased activity levels in the Australian construction segment fuelled the revenue growth for FY2009.
The gross profit jumped over 48% to AUD$71.5 million in FY2009 as the gross profit margin improved from 12.7% in FY2008 to 14.9% in FY2009. The margin improvement was due to improved project execution and timing of variation approvals of several projects within the Australian engineering segment which were finalized in the last quarter of FY2009. However, increased depreciation charges, as a result of the capital works program of FY2008 and FY2009 and certain lower margin contracts in the Australian services segment have offset the increase in gross profit margins faintly.
Other operating income for FY2009 increased by 86% to AUD$3.6 million due to the sale of properties (14 Tuas Link 1 and 4 Tuas Link 1) in Singapore and due to increased interest income earned during the financial year on the cash balances held.
Overall, total overhead expenses (excluding impairments) increased in line with the increased business activity, but remained stable at about 7.0% – 7.5% of the Group’s revenue.
The Group had impairment expenses of AUD$4.1 million in FY2009 that related to impairment of assets held for sale of AUD$1.3 million and the impairment of goodwill related to Cactus of about AUD$2.7 million.
The net profit margin improved from 3.8% in FY2008 to 4.6% in FY2009. The basic earnings per share for FY2009 were 5.5 Australian cents compared with that of 3.6 Australian cents in FY2008.
There was no material impact on the Group’s profit after tax as a result of the acquisition of Modern Access Services Pty Ltd (“MAS”) as MAS was part of the Group for only one month in FY2009.
Financial Position as at: |
30 Jun 2009 |
30 Jun 2008 |
| Property, Plant & Equipment | 94,385 | 61,452 |
| Cash & Cash Equivalents | 25,185 | 18,768 |
| Total Debt | 24,238 | 39,503 |
| Equity | 116,052 | 88,617 |
| Gearing (Debt/Equity) | 21% | 45% |
| Net Gearing (Net Debt/Equity) | Net Cash | 0.23 |
Higher profit level and better working capital management helped generate robust net cash flow from operating activities of AUD$63.1 million in FY2009.
The cash and cash equivalents on the balance sheet as at 30 June 2009 stood at AUD$25.2 million. In FY2009, the Group repaid borrowings of AUD$27.6 million and ended the financial year with a net cash position gearing wise.
Shareholders’ equity increased from AUD$88.6 million as at 30 June 2008 to AUD$116.1 million as at 30 June 2009 mainly due to FY2009 profit contributions. In addition shareholder equity was positively impacted by an increase in the foreign exchange translation reserve as a result of the Singapore dollar strengthening against the Australian dollar and from the issue of additional shares on the acquisition of MAS.
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“We are pleased by the Group’s performance in FY2009. The results are encouraging and indicate we are on the right track as we continue to implement our FIX, BUILD, GROW strategy. We still have a lot of work to do as we seek to improve the consistency of earnings across all parts of our business. This will be a major focus for us over the next 12 months. That said we have a challenging 6 months ahead as the effects of the Global Financial Crisis (GFC) impact our revenues and earnings, particularly in the mineral resources sector. Activity in this sector has been impacted over the last 9 months as a number of resource development projects were delayed, deferred or cancelled. What is encouraging is that we are now seeing increased tendering activity across the mineral resources sector which in turn will flow on to improved demand for the Group’s services in the second half of 2010FY. On the oil and gas side of our business we remain quietly confident as we are well positioned to secure opportunities from the strong Western Australian LNG sector. We have a strong order book, a healthy balance sheet, a clear and focused strategy and good exposure to the recovering demand in the natural resources markets. We are well positioned to continue to deliver solid returns to our shareholders.” John Sheridan, CEO and Managing Director, AusGroup Limited |
The Group’s order book stood at AUD$403 million as at 31 July 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 finalizing 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 recognize costs as they are incurred, which may not match revenue from variations, as these have to be negotiated (sometimes protracted) with clients.
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