EBO
19/02/2014 09:12
HALFYR
REL: 0912 HRS Ebos Group Limited
HALFYR: EBO: EBOS Makes Strong Start to Financial Year
EBOS MAKES STRONG START TO FINANCIAL YEAR
News Release - half year result 19 February 2014
Highlights
- Excellent Result - on track with Net Profit after Tax (NPAT) of $49.4
million (unaudited), exceeding PFI
- All businesses performed well - generating revenue in excess of $3 billion.
- Focus on growth initiatives continues
- Strong cashflow generation
- Dividend payout increased to 20.5 cps on enlarged capital base
- Gearing levels further reduced
- Clear strategy on succession plans
Result on Track
EBOS Group made an excellent start to the 2014 financial year as it seeks to
capitalise on its position as the leading Australasian provider of healthcare
and animal care services and products.
In the six months ending 31 December 2013 EBOS reported NPAT of $49.4
million. That compares to $15 million (unaudited) in the same period a year
earlier. It also beats the $48.7 million as forecast in the prospectus dated
5 June 2013 to support its acquisition of Symbion in Australia. This is a
remarkable achievement given that the NZ dollar exchange rate used in our
forecast was 0.82. The actual rate at 31 December was 0.92.
EBOS Managing Director Mark Waller said: "We delivered a result in line with
what we said we would. We did this in spite of a much higher than expected NZ
dollar. The strength of our result can be put down to excellent performances
across all our business units, which together generated turnover in excess of
$3 billion. We are delighted with the first half results".
Focus on Growth
EBOS is a company founded on growth through acquisitions, organic expansion
and efficiencies.
In the six months to 31 December 2013 cash generated from operations was
$49.6 million, or equivalent to the half year NPAT. Gearing, or net interest
bearing debt to net interest bearing debt plus equity, was 26.7%.
The low gearing and strong cashflow generation of the Group, combined with
undrawn bank facilities of $390 million, provides significant headroom for
future growth.
A number of acquisition opportunities were reviewed during our first half.
None met our strict criteria for shareholder returns.
Dividend
The Directors have declared an interim dividend of 20.5 cents per share,
imputed to 50%. This compares to the 2013 interim dividend of 17.5 cents per
share. The record date for the dividend is close of business 14 March 2014,
payable on 4 April 2014.
The dividend reinvestment plan will operate for this interim dividend,
enabling shareholders to elect to take shares in lieu of a dividend at a
discount of 2.5% to VWAP.
Succession planning / Business continuity
The Board of EBOS has given careful consideration to future growth plans and
how best to manage these with a well signalled succession plan. The key
roles of CEO, Chairman and CFO are an integral part of these plans, given
that they have been vital to the successful growth of EBOS into a company
with revenues of $6 billion.
- Our Chairman of 10 years and director for 14 years, Mr Rick Christie will
retire at the AGM in October 2015.
- Long standing EBOS Managing Director and CEO, Mark Waller will take over
the role of Chairman in 2015 to coincide with Mr Christie's retirement.
- Mark Waller will retire from his managing director role at the conclusion
of our full year result presentations in late August 2014.
Thereafter, Mark will undertake a key project role for 12 months to work on
driving the next phase of the EBOS growth story.
Mark will continue as a director of EBOS during this period up until taking
over the Chairmanship.
- Patrick Davies will become CEO of EBOS Group.
- Our current CFO, Dennis Doherty, had already delayed his planned retirement
following the large Symbion acquisition and will now retire at the end of
August to coincide with the release of our full year result. John Cullity
will become CFO of EBOS Group.
- Patrick Davies and John Cullity are currently the Symbion CEO and CFO and
together have driven the success of Symbion. Patrick and John are high
calibre executives with a real depth of Health industry experience.
- Leonard Hansen who is currently our group financial controller will take up
the role of senior finance executive for NZ on the retirement of Dennis
Doherty.
Chairman, Rick Christie said "The EBOS board is delighted to be able to offer
investors the right mix of continuity to maintain our strategic direction,
proven operational talent and a seamless transition, with an even stronger
growth focus".
Outlook
EBOS continues to look for excellent performance delivered by a strong
management team and supported by a board that is focused on delivering
shareholder wealth. A number of acquisition prospects are being actively
pursued. Negotiations with the NZ Crown owned Health Benefits Limited are
progressing well. Having been chosen as the 'preferred respondent', EBOS
subsidiary Onelink is seeking to finalise a contract that will see it provide
the national supply chain for medical devices and consumables across the
public hospital network and similarly pharmaceutical distribution to certain
public hospitals.
The period under review included a full 6 months of Symbion. Our excellent
result, which is a real step change, clearly reflects this. We are delighted
with the performance of Symbion.
Our journey to redefine our aspirational goals and seek further growth
continues.
______________________________________
________________________________________
Mark Waller Rick Christie
Managing Director/CEO Chairman of Directors
EBOS Group Ltd
Phone: 64-3-338-099
Mobile: 021 368 746
End CA:00247153 For:EBO Type:HALFYR Time:2014-02-19 09:12:08
