AWF
28/05/2015 08:39
FLLYR
PRICE SENSITIVE
REL: 0839 HRS AWF Group Limited
FLLYR: AWF: AWF Posts Strong Performance
MEDIA RELEASE
STRONG PERFORMANCE FOR AWF GROUP
28 May 2015
AWF Group (AWF) has delivered a significant lift in earnings for the year
ended 31 March 2015 in line with guidance provided.
Revenue rose 33% to $197.5 million and net profit lifted 37% to $5.4 million.
Underlying earnings after tax - which, in the opinion of the Board, more
clearly reflect the operating performance of the business - lifted 45% to
$6.8 million (25.8 cents per share)
As a consequence of the strong earnings achieved the company has declared a
final dividend of 8 cents per share (up 5% on last year) payable on July 1 to
shareholders registered as at 24 June. Directors noted that total dividend
for the year at 15.2 cents (fully imputed) represents an 8.6% increase
overall, and that this steady lift in dividend was consistent with earlier
indications given.
In terms of the trading year, AWF Group Chairman Ross Keenan said that the
result included the first full year inclusion of Madison and certainly
validated its acquisition.
He noted that while the Madison business had delivered steady growth in
accordance with Group targets, the core AWF business had delivered mixed
results.
"The economic impacts of a slowdown in activity throughout much of regional
New Zealand continued to provide many challenges across AWF's 36 branches.
However the Auckland, Wellington and Christchurch markets are performing
strongly."
Keenan said the Board was very pleased to achieve a successful capital
raising which gave all shareholders the opportunity to participate. Net
capital raised was $13.5m and a number of new shareholders were added to the
share register.
As the capital raising was completed by 31 March, net debt as at that date
was $18.6m, which (on the strength of an achieved EBITDA of $12.6 million)
was well within levels acceptable to the investment community for a company
of AWF Group's size.
"We have started the 2015/16 year in a strong position, having completed most
major goals to date. We have targeted steady growth for this year, and the
challenge ahead is to establish an appropriate pathway for further
sustainable growth."
He said the new financial year would see the completion of the transition to
new leadership with Simon Bennett assuming the CEO role during June. "In
addition we have been pleased to announce the appointment of a very
experienced AWF COO, plus our participation in the Future Directors
Programme."
The Board advised in a separate release today the change of name to AWF
Madison Group Ltd.
Reconciliation of reported Profit for the Period to Underlying Earnings1
FY15 FY14
Profit for the period 3 5,416 3,952
Add back amortisation of intangible assets 4 1,861 967
Tax effect on adjustments 5 (521) (271)
Underlying Earnings 1 6,756 4648
Earnings per share (cents) 20.7 15.1
Underlying earnings per share (cents)6 25.8 17.8
Reconciliation of Profit before tax to Earnings Before Interest Tax
Depreciation and Amortisation (EBITDA)2
Profit before tax 3 7,808 5,843
Add back finance costs 2,109 714
Add back depreciation and amortisation 2,812 1,879
Subtract investment revenue (112) (51)
EBITDA2 12,617 8,385
1 Underlying earnings is a non-GAAP measure which adjusts for non-cash items
of amortisation and the profit on disposal of subsidiary. In the Directors
opinion this more clearly reflects the operating performance of the Group.
This treatment is consistent with the previous reporting period.
2 Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) is a
non-GAAP measure which allows a comparison of profitability between different
companies by removing the effects of interest, tax, depreciation and
amortisation.
3 The reported profit information has been prepared in accordance with New
Zealand general accepted accounting practice and complies with New Zealand
Equivalents to International Financial Reporting Standards. The reported
profit information has been extracted from audited financial statements.
4 Included in the assets of subsidiaries acquired are identifiable
intangible assets that are amortised over their useful lives. These
amortisation charges have been added back in the calculation of underlying
earnings.
5 Taxation adjustments as a result of adjustments to 2 above.
6 Underlying earnings per share have been calculated on the same basis and
using the same number of shares issued as earnings per share as reported in
the audited annual financial statements.
AWF Group Ltd
ENDS
For the Board:
End CA:00264918 For:AWF Type:FLLYR Time:2015-05-28 08:39:26