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- Release Date: 27/02/13 13:33
- Summary: HALFYR: MGL: Mercer Group Limited Half Year Results to 31 December 2012
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MGL
27/02/2013 11:33
HALFYR
REL: 1133 HRS Mercer Group Limited
HALFYR: MGL: Mercer Group Limited Half Year Results to 31 December 2012
NEWS RELEASE dated 27 February 2013
Mercer's growth continues
Mercer has continued its progress of improved earnings, reporting a surplus
before finance costs of $0.9m (after depreciation of $0.4m) for the first
half of the 2013 financial year compared to a deficit of $1.0m in the same
period last year. This was generated from increased revenues of $21.8m, up
$5.2m from the same period last year. The Net Profit after Tax for the six
month period was $0.6m.
Highlights of the six month period include:
-Revenue growth of $5.2m versus the same period in 2012.
-Greater EBITDA in the first half of 2013 than the full 2012 financial year.
-Compliance with banking covenants.
-Improving safety with no LTIs.
Mercer Stainless
The Stainless 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 Stainless division had a strong first half with a sale of four Titan
slicing lines into Canada and the Darfield Stage 2 construction via GEA
providing the backbone of work. In addition, there have been good sales of
BetaVac machines and our proprietary PV Valves. As a new initiative, we sold
our first three packaging erectors into the Apple sector through Carter Holt
Harvey.
The Stainless division has reported sales revenue of $16.8m, some $6.6m
higher than last year. The Segment EBITDA was $2.0m compared to breakeven
last year.
The current order book is strong with full workshops through until June. We
have good forward orders of Aico Packaging equipment in particular. We
anticipate a good second half result from this division and we are increasing
staffing levels as we grow Titan and other equipment sales.
Mercer Interiors
The Interiors 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. Mercer sells the Wilsonart brand of laminate in the New Zealand
market.
The New Zealand business has seen some increase in sales during the half year
and we expect further momentum in the second half on the back of the
Christchurch rebuild and a general upturn in building consents.
In Australia, Interiors has had difficulties with its distributor and sales
have been disappointing. We have signed a new supply contract with another
customer that will add to volumes and ensure an improved performance in the
second half.
Interiors revenue was $3.9m for the half year, $0.5m lower than last year due
to the Australian result and EBITDA is $0.1m, up from a loss of $0.1m in the
same period last year.
Mercer Medical
Mercer Medical is a division supplying equipment and related products and
services for sterilization, washing and disinfection.
During the period Mercer Medical increased its focus on the servicing
capability which has become the backbone of this division. In addition, we
received orders for the first three 3 MMM sterilizers into the NZ market.
These together with other capital sales will become evident in the second
half financial results. Mercer Medical was break-even during the period.
Mercer Technologies (R&D)
During the first half we appointed Alan Dowman as General Manager of Mercer
Technologies, strengthening our research and development capability. This has
resulted in progress being made across our four primary R&D projects. We are
still confident of commercializing at least one of these projects in the
second half.
Outlook
The company believes it has some good opportunities in front of it and is
providing guidance of $3m EBITDA for the 12 month period to 30 June 2013.
End CA:00233514 For:MGL Type:HALFYR Time:2013-02-27 11:33:41
