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GFC impacts on Coffey results

The professional services consultancy today announced an operating earnings before interest, tax, depreciation and amortisation (EBITDA) of $A31.1 million for the period, down 14% on the previous corresponding period due to a negative $5.6 million unrealised foreign exchange impact. When compared to the second half of the 2009 financial year, the operating EBITDA result is up by $11.4 million or 58%. This result was achieved on fee revenue from continuing operations of $241 million, down 7% on the December 2008 half-year result.Total revenue from continuing operations fell 3% on the June 2009 half year to $404.3 million, driven by the foreign exchange impact. The reported net profit fell 20% to $10.9 million, representing basic earnings per share of 9.5c. The company said that while there had been strong signs of a rebound in the Asia Pacific region, the impact of the global financial crisis continued to linger in the Middle East, Europe, the Americas and Brazil. “While the GFC has clearly had an impact on our first-half results, particularly outside the Asia Pacific region, Coffey is well positioned to take advantage of the gradual recovery being observed in other regions,” Coffey managing director Roger Olds said. “During the half, Coffey successfully implemented a new structure which positions us to execute our strategy for global growth across our four regions.“Under the new structure, the company has built a dedicated business development capability that is actively driving our organic growth plans.”Olds said the company would continue to focus on achieving efficiencies and strong working capital management while building the revenue base through increased business development activity. “We have a strong focus on returning the loss-making service lines to profitability as regional economies recover,” he said. “We are confident that we will continue to deliver strong results through our diversified business and current strategies, despite some continuing economic uncertainty and volatility in global economics.”Coffey’s net debt fell around $5.5 million for the period. The net debt to capital ratio has reduced 2% from the June 2009 half year to 31%. A fully-franked interim dividend of 7.5c per share was declared, a 1c per share drop on the prior corresponding period. The interim dividend will be paid on March 26. Shares in Coffey have slipped 9c to $2.05 in morning trade.

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