Sydney, Feb 10, 2009 AEST (ABN Newswire) - SAI Global Limited (ASX:SAI) today posted a 140.5% increase in net profit after tax for the six-month period ended on 31 December 2008. When compared to the result for the corresponding period before the impact of non-recurring charges incurred in that period, the increase was 57.5%.
The company achieved a revenue increase of 26.4%, driven by a combination of acquisitive and organic growth. Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 37.5% to $28.2M, compared with $20.5M before the impact of the non-recurring charges achieved in the corresponding period.
The company experienced strong underlying demand for its products and services across its three operating divisions, confirming the resilient nature of the company's businesses in times of economic downturn.
The directors have increased the interim dividend to 5.4 cents per share. This dividend will be fully franked.
SUMMARY
----------------------------------------------Revenue $142.8M Up 26.4% from $113.1M ----------------------------------------------EBITDA $28.2M Up 37.5% from $20.5M (before non-recurring charges)----------------------------------------------Net Profit After Tax (NPAT) $10.3M Up 57.5% from $6.5M (before non-recurring charges) Up 140.5% from $4.3M (after non-recurring charges)----------------------------------------------Adjusted NPAT (cash earnings)(1) $14.7M Up 87.7% from $7.8M (before non-recurring charges)----------------------------------------------Adjusted (cash) EPS 10.2 cents Up 85.5% from 5.5 cents (before non-recurring charges)----------------------------------------------Dividend 5.4 cents, 5.2 cents, fully franked 85% franked----------------------------------------------
1. Net profit after tax after adding back the non-cash charges for the amortization of intangible assets and equity based remuneration, together with net movements in deferred tax balances
Commenting on the first half the Chief Executive Officer of SAI Global Limited, Mr Tony Scotton, said: "These are very pleasing results achieved against the backdrop of recessionary pressures in Europe, North America and now the Asia Pac region. The publishing business achieved further growth, building on the outstanding performance achieved last year. The compliance business has carried forward the positive momentum evident in the second half of last year and posted strong growth. The assurance business has also performed very well."
Business Publishing Division
--------------------------------------------------------- 6 months ended 6 months ended 31 December 2008 31 December 2007(1) Change (%)---------------------------------------------------------Revenue ($M) 45.0 42.3 6.3EBITDA ($M) 18.8 17.5(2) 7.6EBITDA Margin (%) 41.8 41.32 0.5%---------------------------------------------------------
1. Before the impact of non-recurring charges
2. Figures restated to reflect the allocation of corporate costs using the methodology adopted from the beginning of the current half-year period
The publishing business continues to evolve from its origins as a distributor of standards developed by third parties into a value-added information services provider. It now has an increased focus on acquiring and developing intellectual property which is crucial for its customers in achieving effective workflow solutions.
Revenue grew by 6.3% to $45.0 million (6.2% on a constant currency basis) and EBITDA by 7.6% to $18.8 million (8.6% on a constant currency basis), all of this growth being organic in nature. EBITDA margins increased slightly from 41.3% to 41.8%. All segments of the division performed close to or above expectations with the exception of the property services business which is experiencing lower transaction volumes compared with the corresponding period.
The operating focus over the last six months continued on creating a coherent global business, integration of IT platforms and driving organic revenue growth to offset the anticipated reduction in revenue from sales of the Wiring Rules and ASME Pressure Vessel Code which featured strongly in last year's result.
Excellent progress has been made in developing a one-stop source of technical and business information, which can be accessed from any internet connection in the world. This is being achieved by integrating content acquired in North America, Europe and Australia into a single web shop which offers our customers a wider range of technical and regulatory information.
Compliance Services Division
--------------------------------------------------------- 6 months ended 6 months ended 31 December 2008 31 December 2007(1) Change (%)---------------------------------------------------------Revenue ($M) 19.4 16.6 16.9EBITDA ($M) 3.3 1.2(2) 185.7EBITDA Margin (%) 17.1 7.0(2) 10.1%---------------------------------------------------------
1. Before the impact of non-recurring charges
2. Figures restated to reflect the allocation of corporate costs using the methodology adopted from the beginning of the current half-year period
SAI's Compliance Services division continues to evolve into an effective global operation, servicing some of the largest, best known corporate names in the world. The business has continued to invest in product development to meet demands from its customers for increasingly diverse and customised programs.
The significant improvement in the financial performance of this division in the second half of the previous financial year has continued. Revenue grew by 16.9% over the corresponding period (10.8% on a constant currency basis), to $19.4 million and EBITDA grew by 185.7% to $3.3 million (167.7% on a constant currency basis), all of this growth being predominantly organic in nature. EBITDA margins increased to 17.1%, up significantly from the 7.0% achieved in the corresponding period.
Assurance Services Division
--------------------------------------------------------- 6 months ended 6 months ended 31 December 2008 31 December 2007(1) Change (%)---------------------------------------------------------Revenue ($M) 79.3 55.4 43.1EBITDA ($M) 11.2 6.9(2) 61.2 EBITDA Margin (%) 14.1 12.5(2) 1.6%---------------------------------------------------------
1. Before the impact of non-recurring charges
2. Figures restated to reflect the allocation of corporate costs using the methodology adopted from the beginning of the current half-year period
Continued organic growth and the inclusion of a full six months of QMI, resulted in strong revenue and profit growth for the Assurance Division in the first half. Revenue grew by 43.1% (37.0% on a constant currency basis) and EBITDA by 61.2% (50.7% on a constant currency basis). The EBITDA growth benefited from improved margins across the division, most notably within the Australian operations and Asia. The EBITDA margin increased to 14.1%, up from 12.5% in the corresponding period.
Expanding the global footprint and underlying operational capability to better service multi-national companies remains a key priority for this business. The business is focusing on newer and emerging markets within the expanding European Union, Asia and Latin America as well as broadening penetration and capabilities beyond core sectors in our more established Europe, North America and Australasia businesses. Growth opportunities exist in the areas of food safety, product certification and supply chain assurance whilst, in addition, the business is investing specifically to take advantage of new and emerging opportunities in the environmental space and on assisting clients to effectively leverage their system investments through advanced training and process improvement solutions.
Outlook for the Full Year
SAI continues to experience solid demand for its products and services despite the global macro-economic conditions. All of SAI's divisions continue to perform in line with or ahead of budget.
The directors expect the full-year result to be ahead of the result achieved last year and confirm the guidance provided on 22 January 2009. The directors expect the results for the full year to be towards the lower end of the following ranges:
- Revenue of between $292M and $302M(1)
- EBITDA of between $63.6M and $65.6M(1)
- NPAT of between $24.7M and $25.7M(1)
1. Assumed average exchange rates for the year ending on 30 June 2009: AUD:USD of 0.713 and AUD:GBP of 0.447
Dividend Payment
The interim dividend of 5.4 cents will be paid on the 27th March 2009 to shareholders registered at close of business on 20th February 2009.
Contact
Tony Scotton
Chief Executive Officer
SAI Global Limited
TEL: +612-8206-6182
MOB: +61-419-527-592
Geoff Richardson
Chief Financial Officer
SAI Global Limited
TEL: +612-8206-6805
MOB: +61-429-314-698
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