SAI Global (ASX:SAI) Delivers Earnings Per Share Growth of 23.9% After a Record First Half

Sydney, Feb 11, 2010 AEST (ABN Newswire) - SAI Global Limited (ASX:SAI) today announced a record half-year net profit after tax of A$13.7M, representing an increase of 33.2% over the corresponding period.

A strong contribution from the property services business which includes a sizeable contribution from Espreon, together with continued organic growth, more than offset the adverse impacts of the stronger Australian dollar and the weaker trading conditions experienced by the standards training and automotive assurance businesses.
Revenue increased by 35.9% to A$194.1M. EBITDA increased to A$35.4M, up 25.6% on the corresponding period. Operating cash inflows were strong, up 51.3% to A$17.9M.

Chief Executive Officer, Mr Tony Scotton said: "We have delivered another record result which reaffirms the strength of our business model, bolstered by pleasing contributions from recent acquisitions". He added "some of our businesses felt the impact of the economic headwinds but through rigorous cost control overall we achieved organic growth in profitability on a constant currency basis. A particularly pleasing aspect of the second quarter was the noticeable pick up in business pipelines and sales which confirm that we can look forward with confidence".

The directors have declared a fully franked final dividend of 5.8 cents per share. The dividend will be paid on 26 March 2010. The record date is 24 February 2010.

KEY PERFORMANCE INDICATORS

-----------------------------------------Revenue               $194.1M   Up 35.9% Net revenue(1)        $147.6M   Up 9.2%EBITDA                $35.4M    Up 25.6% Net profit after tax  $13.7M    Up 33.2% EPS                   8.8c      Up 23.9% Final dividend 5.8c, 100% franked Up 0.4c ------------------------------------------Net operating cash inflow           $17.9M    Up 51.3% ------------------------------------------

(1). Excludes the revenue which relates to the recharging of customers for fees levied on the Company by providers of searches and certificates to the property services businesses

Information Services

Information Services achieved a strong financial outcome for the first half, ending the period ahead of our expectations, despite the adverse impact of the stronger Australian dollar on income generated overseas. The standout performer during the period was the property services business which benefitted from the upturn in the number of property transactions.

Revenue grew by 124% to A$100.8 million (129.5% on a constant currency basis) and EBITDA by 34.8% to A$25.4 million (42.9% on a constant currency basis). The large increase in revenue includes the contribution from the Espreon acquisition. A high proportion of Espreon's revenue relates to the recovery of the charges levied by the various authorities involved in providing property searches and related certificates. Excluding the impact of these recharges which are included in the revenue of both Espreon and the Company's other property services businesses, the growth in net revenue was 45.4% to A$54.4M, up from A$37.4M in the corresponding period

Measuring the EBITDA margin relative to net revenue provides a more appropriate indication of the division's underlying profitability trend. Measured on this basis the EBITDA margin contracted to 46.6%, down from 50.3% achieved in the corresponding period. The contraction in margin relates to the addition of the Espreon business which currently operates at lower margins to the existing Information Services businesses.

---------------------------------------                1H10    1H09    Change       ---------------------------------------Revenue ($M)    100.8   45.0    124.0%---------------------------------------Net revenue     54.4    37.4    45.4%---------------------------------------EBITDA ($M)     25.4    18.8    34.8%---------------------------------------EBITDA Margin on net revenue (%) 46.6    50.3    (3.7%)---------------------------------------

Compliance Services

The regulatory compliance industry continues to experience strong growth drivers which reflect the increased volume, complexity and interdependency of global, regional and country-specific regulations which pose governance, compliance and risk management challenges for all corporations. However, the growth in the first half has been moderated by budget pressures on its customers attributable to the global economic downturn. That said, tangible signs emerged towards the end of the period that the worst of the downturn appears over. Pipelines of potential new business continue to build.

Despite the adverse impact of the economic downturn, which was exacerbated by the stronger Australian dollar, the division was able to post excellent profit growth through rigorous cost control. Revenue grew by 4.5% over the corresponding period (12.6% on a constant currency basis), to A$20.3 million and EBITDA grew by 22.0% to A$4.1 million (33.0% on a constant currency basis). EBITDA margins increased to 20.0%, up from the 17.1% achieved in the corresponding period.

---------------------------------------                 1H10    1H09    Change---------------------------------------Revenue ($M)     20.3    19.4    4.5%EBITDA ($M)       4.1     3.3    22.0%EBITDA Margin (%)20.0    17.1    2.9%---------------------------------------

Assurance Services

Assurance Services delivered EBITDA growth of 6.0% on a constant currency basis (7.4% decline in absolute terms) despite economic headwinds and the related contraction in the key market segments of automotive and standards training. Revenue declined by 1.3% on a constant currency basis (7.3% decline in absolute terms), as a direct result of weak performances within training and the European automotive sector. Excluding the impact of these factors, and the adverse impact of a strengthening Australian dollar, the other core operations in the division achieved better than expected organic revenue growth, specifically in our Asian and Americas businesses. The EBITDA margin across all operations remained constant at 14.1%.

---------------------------------------                 1H10    1H09    Change---------------------------------------Revenue ($M)     73.5    79.3    (7.3%)EBITDA ($M)      10.4    11.2    (7.4%)EBITDA Margin(%) 14.1    14.1     0.0%---------------------------------------

Acquisitions

During the period the Company expanded its operations through a number of acquisitions.

- In October 2009 the Company acquired Cintellate Pty Limited. Cintellate provides compliance and risk management tools that enable companies to manage their compliance obligations and risk mitigation initiatives in the areas of safety, health and the environment. The company focuses predominantly on the utilities, oil, gas, refining, mining, engineering, construction, manufacturing and chemical sectors.

- Also In October 2009 the Company's product certification operation was enhanced through the acquisition of Enertech Australia Pty Ltd. Enertech undertakes product performance testing in the areas of gas and electrical appliances, and complements SAI's existing product certification operations. Enertech's technical expertise is recognised by Australian and international stakeholders, including government regulators and manufacturing organisations.

- In December 2009 the Company acquired Vectis's 36.4% shareholding in Espreon Limited, taking SAI's ownership of Espreon to 99.2%. The Company intends to compulsorily acquire the remaining 0.8% during the second half. Moving to 100% ownership of Espreon will enable SAI to extract the extra synergy benefits outlined in the original Bidder's Statement. These extra cost synergies are expected to be realised and embedded over the next two years through the integration of the management of the Company's two property businesses, API and Espreon, and the integration of technology platforms.

Outlook for FY10

The company expects continued growth in revenue and profitability over the course of the second half despite the adverse impact of the stronger Australian dollar. Pipelines and orders continue to build and there has been a noticeable improvement in customer sentiment.

The results for the full year are expected to be within the following ranges:

- EBITDA of between A$74M and A$77M(1)
- NPAT of between A$31M and A$33M(1)

(1). Assumed average exchange rates for the 2H10: AUD:USD 0.9000 and AUD:GBP 0.5600

For further information please visit:

http://www.saiglobal.com

Contact

Media & Investor Inquiries: Tony Scotton Chief Executive Officer SAI Global Limited TEL: +61-2-8206-6182 MOB: +61-419-527-592 Geoff Richardson Chief Financial Officer SAI Global Limited TEL: +61-2-8206-6805 MOB: +61-429-314-698