MGL 0.00% 0.0¢ mercer group limited

Ann: FLLYR: MGL: Mercer reports strong progress i

  1. lightbulb Created with Sketch. 2
    • Release Date: 29/08/13 12:01
    • Summary: FLLYR: MGL: Mercer reports strong progress in 2013
    • Price Sensitive: No
    • Download Document  4.46KB
    					
    
    MGL
    29/08/2013 10:01
    FLLYR
    
    REL: 1001 HRS Mercer Group Limited
    
    FLLYR: MGL: Mercer reports strong progress in 2013
    
    NEWS RELEASE dated 29th August 2013
    
    Mercer reports strong progress in 2013
    
    Mercer Group has made strong progress in 2013 with an audited reported
    trading profit (EBITDA) of $2.5m for the full year and a Net Profit after Tax
    of $0.8m.  This is at the top end of the previous market guidance, and
    significantly up on last year's reported EBITDA of $0.1m.
    
    Highlights of the year include:
    
    - Revenue growth of $5.5m versus the 2012 year.
    - EBITDA of $2.5m versus $0.1m in 2012 (2012 normalised EBITDA was $1m).
    - Balance Sheet Equity growth of $0.8m.
    - New Banking facility in place to fund Titan acquisition and other growth
    projects.
    - Good progress on S-Clave development.
    - Improving safety with LTIFR reducing to 7 for the full year versus 31 for
    prior year.
    
    Stainless Division
    
    This division comprises the fabrication workshops in Christchurch and New
    Plymouth, an operation in Nelson and a branch in Brisbane, Australia.  The
    division is a fabricator and manufacturer of equipment, predominantly in
    stainless steel for the food industry. The acquisition of Titan Slicers sits
    in this division.
    
    The business had a strong year with the largest projects being the sale of
    four slicing lines to Maple Leaf Foods (MLF) in Canada, the Fonterra Darfield
    Stage 2 construction via GEA, and a cheese hall upgrade at Open Country.  The
    Stainless division has reported sales revenue of $28.1m, some $7.0m higher
    than last year.  The Segment EBITDA was $3.2m compared to $1.0m last year.
    
    The current order book is strong with good workloads through until next
    February.  We have strong forward orders of Aico Packaging equipment into
    Australia in particular, and have successfully secured a good amount of the
    Oceania Dairy - Yili project.  We also have some Titan machine builds
    underway, and with MLF now successfully installed we are moving the focus
    back onto sales, particularly in North America.
    
    Interiors Division
    
    This division manufactures in New Zealand and supplies sinks, basins, tubs,
    toilets, laminate, solid surface material and other similar products to
    joiners, merchants, fabricators and other manufacturers in New Zealand and
    Australia.  Mercer sells the Wilsonart brand of laminate in the NZ market.
    
    The New Zealand business had growth in 2013 versus prior year, and we expect
    further growth to occur in FY14 as the economy continues to lift, Mercer
    improves its sales capability, and the Company launches its new tight radius
    pressed sinkware range.
    
    In Australia, Mercer had a difficult year, but we are pleased to have signed
    a new primary distributor - Argent Australia Pty Ltd, that commenced in early
    August.
    
    Overall the segment EBITDA was $0.3m, up from breakeven last year.
    
    Medical Division
    
    Mercer Medical is a division supplying equipment and related products and
    services for sterilization, washing and disinfection.  As discussed at the
    half-year, Mercer has successfully introduced MMM equipment into NZ and has
    lifted earnings in the second half as a result.  Segment EBITDA was $0.2m for
    2013.
    
    Mercer Technologies (R&D)
    
    Mercer is close to finalizing a license agreement for its S-Clave technology
    with a large multinational company for the North American market.  This
    follows an intense due diligence process that was recently signed off by the
    prospective Licensee.  We will make a further announcement when the terms
    have been finalized and the agreement is signed.
    
    Dividends
    
    The Directors have decided not to declare a dividend this year.
    
    Outlook
    
    After the restructuring and repositioning of the Company in 2012, we focused
    on improving operating performance in 2013 and selectively investing in key
    areas for profitable growth in 2014 and beyond.  In particular, Mercer
    purchased Titan Slicer and has invested around $2m into this initiative for
    the acquisition and then working capital.  Mercer has also invested close to
    $0.7m in the S-Clave in the past 12 months and has reviewed a number of other
    acquisition opportunities.
    
    This coming year, Mercer is anticipating improved earnings over 2013 and a
    reduced level of capital and IP expenditure.  New equity is likely to be
    introduced from the warrants on issue. These factors should result in a
    strong cash inflow that Mercer can use to repay debt and continue to search
    for appropriate acquisitions.
    
    For further information, please contact Rodger Shepherd, CEO on +649 837 7540
    End CA:00240384 For:MGL    Type:FLLYR      Time:2013-08-29 10:01:43
    				
 
watchlist Created with Sketch. Add MGL (NZSX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.