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From the Rust Report

Rust Bucket

Austech financial scorecard part II
September 16, 2011

Publisher Len Rust
The Austech reporting season continues to highlight mixed results. The following eight companies have taken various changes of direction during the past twelve months.

ADACEL TECHNOLOGIES (ASX: ADA) generated revenue and other income of $38.6 million compared to $48.4 million in 2010. The gross margin on revenue increased to 42% in 2011 from 33% in 2010, primarily due to the mix of job types and overall program performance which was strong. Company infrastructure was reduced late in the second half to ?right size? the business for the future.

CUSTOMERS (ASX: CUS) reported net profit after tax of $18.8 million inline with the previous year of $18.6 million. Revenue rose 6.3% to $124.4 million benefitting from the transaction fee increase rolled out during 2011, which resulted in a 7.5% increase in average revenue per transaction. MD Tim Wildash said these numbers are an indicator of the company?s approach to maximizing the opportunities rather than of changing consumer behaviour.

DWS (ASX: DWS) FY2011 revenue was up 3% to $98.39 million, EBITDA was down 8% to $24.81 million, earnings down 6% to $17.39 million the report stated . Operations during FY11 were affected by Federal and Victorian elections, natural disasters in Queensland and a client close down at Christmas. The outlook for FY12 is positive and the company is continuing to see solid demand for services across the Government, Banking, Finance and Utilities sectors.

EMPIRED (ASX: EPO) announced record breaking full year results. Revenue was up 42% to $39.71 million, EBITDA of $1.28 million up 132%. Russell Baskerville, MD said ?We are delighted with both the operational and financial performance delivered during 2011 financial year. This performance not only vindicates our strategy and the underlying strength of our business model but strategically positions Empired for considerable revenue and earnings growth during the current financial year?.

eSERVEGLOBAL?s (ASX: ESV) FY 2011 was a year of transition. Sales revenue for the period was $42.8 million and gross profit of $23.4 million. Craig Halliday CEO said, ?The results for this financial year demonstrate the success of the transformation we have achieved at eServGlobal. We have created an organisation that is flexible enough to meet the demands of operators and banks in emerging markets while transitioning to EBITDA profitability in just six months?.

INFOMEDIA (ASX: IFM) reported revenue down 3% to $44.09 million and NPAT down 11% to $10.04 million. Executive Chairman, Richard Graham said ?The underlying performance of the company was strong, what the headline numbers do not convey is the organic growth in our revenues in their native currencies ? the US dollar, Euro and Australian Dollar. Mr. Graham also said ?In constant currency terms, revenues in Europe, Asia Pacific and North America all grew.

REA GROUP (ASX: REA) announced record results for the year. Revenue rose 23% to $238.4 million; EBITDA grew by 32% to $103.2 million and net profit from continuing operations increased by 37% to $67.5 million. The REA Group CEO and Managing Director Greg Ellis said ?As our FY11 results show, the REA Group is now a fully diversified online advertising business. We are delivering growth through six areas within the business, including commercial result media and our international operations?.

VOCUS communications (ASX: VOC) announced a 77% increase in revenue to $30.98 million and a Profit Before Tax increase of 80% to $10.22 million in its FY2011 results. James Spenceley, Vocus?s CEO stated that this was another excellent result with the company continuing to focus on leveraging the global growth in internet usage while expanding its products to become the leading challenger brand in the provision of core infrastructure such as Dark Fibre and Data Centre space.

?Len Rust, [email protected]