EBO
27/08/2014 08:30
FLLYR
REL: 0830 HRS Ebos Group Limited
FLLYR: EBO: EBOS On Target
27 August 2014
EBOS ON TARGET
AFTER TRANSFORMATIONAL DEAL
Year's highlights
- First full year of trading for the Symbion business acquired in June 2013
- Total revenues of $5.8 billion up 216% on the prior year
- Net Profit of $92.1 million
- 34% increase in Earnings per Share
- Cash from Operating Activities of $114.2 million
- HBL contract to supply all District Health Boards in New Zealand now
executed
- Dual listing on ASX completed in December 2013
The EBOS Group today reported annual financial results reflective of the true
Trans-Tasman business it has become following last year's acquisition of
Australia's Symbion business. In reporting on today's results, Managing
Director, Mark Waller stated that he was delighted with the financial
performance of the Group and the success of the Symbion acquisition which was
the largest ever undertaken by the Company.
"The last financial year has been one of immense positive change for the
company. We have created a business that is Australasia's leading
diversified marketer, distributor of healthcare, medical and pharmaceutical
products and a leading marketer of Animal care products. The results today
provide a benchmark for what we can achieve in the future. We now have the
platform for further growth opportunities that will provide value to our
customers and shareholders."
Group financial performance
The financial results for EBOS include a full 12 months performance from the
Symbion business acquired in June 2013. The prior year results only included
18 days trading for Symbion and, therefore, year on year comparisons for our
key performance indicators have been favourably impacted by the acquisition.
Given that approximately 80% of the Group's earnings are generated in
Australia, the appreciation of the NZD over the course of the financial year
has had a significant impact on NZD reported earnings. Mark Waller commented
that "despite these currency headwinds we have been able to deliver a net
profit of $92.1 million which is in line with market expectations".
"The benefits of the Symbion acquisition can be seen by the company's 34%
increase in earnings per share and the record cash flow generated from
operating activities of $114.2 million" Mark Waller said. The breadth of
Symbion's healthcare businesses has enabled the company to further grow its
profitability even after allowing for the impact of the Australian
Government's PBS price reforms.
EBITDA of $178.2m grew by $120 million on the prior year representing growth
of 206%.
The excellent cash flow result for the business has resulted in a significant
reduction in its Net Debt. The Net Debt/EBITDA ratio was 1.8x at 30 June
2014 (3.0x at 30 June 2013). Gearing or net interest bearing debt to net
interest bearing debt plus equity was 24.4% (2013-36.3%). The company's
focus on working capital management and its cash conversion cycle will
provide the strength for the company to continue to grow both organically and
through appropriately priced acquisitions that improve shareholder value.
Debt Refinancing
In August 2014, the Company took advantage of favourable credit markets and
successfully refinanced its banking facilities incorporating both an
extension of term and reduced margins.
Dividends
The Board declared a final dividend of 20.5 cents a share payable on 17th
October 2014 imputed to 35%. This follows an interim dividend of 20.5 cents
paid in April 2014 and takes full year dividends to 41 cents a share. The
dividend reinvestment plan will operate for the final dividend, enabling
shareholders to elect to take shares in lieu of a dividend at a discount of
2.5% to VWAP. The Record Date for the final dividend is 3 October 2014.
Leadership and Management changes
The management transition plan that the Board announced in February 2014 is
now in place. On what is Mark Waller's final profit announcement as Managing
Director; Chairman, Rick Christie said: "the Company has been extremely
fortunate to have had the leadership and expertise of Mark for 30 years and
through his skills the business has grown to what it is today".
"The company is delighted to have Patrick Davies assume the role of Chief
Executive Officer and looked forward to Patrick continuing the EBOS growth
story."
Outlook
Management are focused on leveraging the strengths of the business to capture
the long term value that on-going demand in our healthcare and animal care
markets provide. Whilst we face on-going regulatory challenges in our
pharmacy markets we have always demonstrated innovative ways to generate
earnings growth and we are confident that our management team can continue
the company's strong track record of growth into FY15.
________________________________ ____________________________________
Mark Waller Rick Christie
Managing Director Chairman of Directors
EBOS Group Limited
Enquiries:
Geoff Senescall
Email: [email protected]
Phone: (09) 309 5659
Mobile: 021 481 234
End CA:00254437 For:EBO Type:FLLYR Time:2014-08-27 08:30:06
