Sydney, Aug 22, 2007 (ABN Newswire) - Thomas & Coffey Limited (ASX:THO), the specialised industrial services company, today announced a profit after tax of $5.0 million for the year to 30 June 2007, an increase of 51.5 per cent over FY 2006. Earnings per share rose by 50.0 per cent to 6.6 cents and revenue rose by 24.6 per cent to $219.2 million.
The directors have declared a fully franked final dividend of 2.0 cents per share (FY2006: 1.5 cents), payable on 26 October 2007 to shareholders on the register at 12 October. This will bring dividends for the year to 3.5 cents per share, up 40 per cent from FY2006 (2.5 cents). The dividend reinvestment plan will apply to the final dividend with a discount of 5 per cent.
Results summary FY 2007($ M) FY 2006($ M) % increase
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Revenue 219.2 176.0 24.6
EBITDA
(Earnings before
interest, tax,
depreciation
and amortisation) 9.6 6.4 50.7
Profit before tax 7.0 4.6 52.3
Profit after tax 5.0 3.3 51.5
Earnings per share -
diluted (cents) 6.6 4.4 50.0
Final dividend
per share
fully franked (cents) 2.0 1.5 33.3
Total dividends
per share
fully franked (cents) 3.5 2.5 40.0
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'We are very pleased to report a sixth consecutive half year of pre-tax earnings growth,' said Mr Martin Whittaker, managing director. 'The company has an increasingly strong position in its markets and the investments we have made in our operating platform over the past few years are starting to bear fruit.
'We are continuing to invest in resources and infrastructure so we are equipped to take advantage of further growth opportunities. We are in the process of opening our biggest facility, a 6000 square metre workshop at Kurri Kurri, NSW, which will enable us to enhance the services we provide the coal and aluminium industries in the Hunter region. This will give us four workshops in the region and is another step in our objective to become the region's largest provider of quality mechanical maintenance services.
'We have recently opened a new sheet metal shop at Wollongong and have expanded our premises in Brisbane. We are also committed to expanding our facilities in Sydney and Mackay and to doubling the size of our specialised asset workshop in Rockhampton.
'We believe our investment in safety, training and the wellbeing of our employees is helping us to attract more skilled people, providing a significant competitive advantage at a time when labour markets are tight. We now have close to 1,000 employees, including more than 110 apprentices. The staff retention rate has improved and our lost time injury frequency rate has continued to fall.
'At the beginning of July, we acquired for $6.5 million Coffey Engineering Services Pty Limited (an unrelated company), which provides a wide range of mechanical services from premises at Penrith, NSW. The business is expected to be earnings per share accretive in FY 2008.
'The company has a sound financial position, with net assets increasing to $18.2 million from $14.2 million during the year. Positive cash flow of $4.4 million increased cash to $12.2 million from $7.8 million.
'Our track record and enhanced balance sheet has enhanced our ability to raise debt. Coffey Engineering was our first significant acquisition for nine years and we are going through a careful process of integration. We expect acquisitions to become a larger part of our growth strategy and have identified several potential bolt-on opportunities.'
Outlook
'We continue to invest heavily to enhance our operating platform,' said Mr Whittaker. 'Meanwhile, the business is continuing to perform well and we expect FY 2008 earnings to exceed FY2007, before the contribution of Coffey Engineering.'
