AWF 0.00% 0.0¢ awf madison group limited

Ann: FLLYR: AWF: AWF Posts Strong Performance

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    					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
    				
 
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