Investors + Media Announcements 2009 AusGroup Registers Record Half-Yearly Revenue of AUD$260.5 million for 1HY09
AusGroup Registers Record Half-Yearly Revenue of AUD$260.5 million for 1HY09
10 February 2009
- An increase of 28.8% in revenue y-o-y.
- Earnings for the period at AUD$10.8 million.
- Net cash from operating activities robust at AUD$33.4 million.
AusGroup today announced its results for the six months that ended 31 December 2008 ('1HFY09').
Financial Highlights |
1HYR09 AUD$'000 |
1HYR08 AUD$'000 |
Change % |
| Revenue | 260,476 | 202,217 | 28.8 |
| Gross Profit | 32,046 | 31,779 | 0.8 |
| Gross Operating Margin | 12.3% | 15.7% | - |
| Other Operating Income | 2,030 | 526 | 285.9 |
| Operating Expenses* | 17,468 | 15,054 | 16.0 |
| Operating Profit | 16,608 | 17,251 | (3.7) |
| Operating Profit Margin | 6.4% | 8.5% | - |
| Net Profit Attributable to Equity Holders | 10,797 | 12,119 | (10.9) |
| Net Profit Margin | 4.1% | 6.0% | - |
| Basic Earnings Per Share** (AUD cents) | 2.7 | 3.1 | - |
| Net Operating Cash Flow | 33,376 | (8,913) | N.M. |
* Operating expenses comprise of administrative expenses, marketing and distribution expenses and other operating expenses
** The weighted average number of shares in calculation is the same in both periods at 393.955 million share
The revenue growth was mainly due to the increased activity levels from the Australian business, particularly in the fabrication and construction side. However, due to some lower margin contracts, timing of variation approvals on particular projects and increased depreciation charges; the gross profit remained flat at AUD$32.0 million for 1HFY09.This resulted in the gross profit margin declining from 15.7% to 12.3% in 1HFY09.
The other operating income increased to AUD$2.0 million in 1HFY09 mainly due to sale of the Group’s property at 14 Tuas Link 1 in Singapore. The operating, marketing and administrative expenses grew by 16.0% to AUD$17.5 million which was within expectations and included several one off costs related to two senior executive retirements and some staff redundancies.
The net profit attributable to shareholders decreased by AUD$1.3 million to AUD$10.8 million in 1HFY09 and basic earnings per share decreased from 3.1 cents in 1HFY08 to 2.7 cents in 1HFY09.
The operating activities yielded a net cash flow of AUD$33.4 million for 1HFY09 from operating cashflows and a significant reduction in working capital.
Balance Sheet (AUD$'000) |
31 Dec 2008 | 30 Jun 2008 |
| Property, Plant & Equipment | 87,474 | 61,452 |
| Cash & Cash Equivalents | 10,659 | 18,768 |
| Interest Bearing Liabilities (Short Term + Long Term) | 20,220 | 39,503 |
| Shareholder's Equity | 106,477 | 88,617 |
| Gross Gearing (Debt / Equity) | 0.19 | 0.45 |
| Net Gearing ((Debt - Cash) / Equity)) | 0.09 | 0.23 |
| Net Asset Value Per Share*** (AUD cents) | 27.7 | 22.5 |
***The net asset value per ordinary share is calculated based on 393.955 million shares for both dates
There was a reduction in cash and cash equivalents to AUD$10.7 million at the end of the reporting period as the Group made repayment of loans, leases and hire purchase of AUD$23.1 million during 1HFY09. The Group invested AUD$24.2 million during 1HFY09 in line with its capital investment program. The Group capital investment program is now largely complete.
Shareholders’ equity increased from AUD$88.6 million as at 30 June 2008 to AUD$106.5 million as at 31 December 2008 due to the profit contribution from the half year and an increase in the foreign exchange translation reserve as a result of the Singapore dollar strengthening against the Australian dollar.
Debt levels have reduced significantly which has seen a significant improvement in the gearing. The gross gearing improved from 0.45 as at 30 June 2008 to 0.19 as at 31 December 2008.
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“We are encouraged by our half year performance, albeit we need to continue to work hard at lifting our gross profit margins on future earnings in order to deliver a satisfactory return to shareholders. Our strategy implementation is largely on track and we have seen positive improvements in our project execution, particularly in our Australian oil and gas operations. The outlook for our business will be challenging in the short term as we deal with the fallout from the global financial crisis and a slowdown in the mineral and resources projects in our Western Australian market and the subsea equipment sector in Singapore. As a group we have taken steps to reduce costs across our business in response to the forward looking outlook. In addition we are reviewing our strategy in light of the changed global conditions. We remain positive on the outlook for LNG related opportunities for our Australian fabrication and construction services. Our balance sheet is strong, we have a clear and focused strategy and we are well placed to see through the challenges ahead.” John Sheridan, CEO and Managing Director, AusGroup Limited |
The Group’s order book stood at AUD$168 million as at 31 December 2008.
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 the full year results for FY09 to remain profitable.
The Group wishes to inform that the presentation slides for the Group’s 1HFY09 briefing are available under the Financial Results + Presentations page of the website.
