Sydney, Feb 17, 2009 AEST (ABN Newswire) - IBA Health Group Limited (ASX:IBA)(PINK:IBATF) - Australia's largest listed health information technology company today announced its half-year results for the six months ended December 31 2008.
IBA Health has recorded revenues of A$275 million, up 168% (H1 08 A$103 million), and an EBITDA of A$67.5 million, up 161% (H1 08 A$26 million). The previous corresponding period, H1 08, consisted of 6 months of IBA and 2 months of iSOFT. Accordingly, 12 months of post-acquisition performance has been provided, showing the company is on track to meet its FY 09 guidance.
HIGHLIGHTS
- Reported EBITDA growth of 161% to A$67.5 million in H1 08
- Better than expected reported EBITDA margin of 24.5%
- Reported EBITDA at constant currency for H1 is A$68.3 million
- Net profit after tax of A$10.3 million
- Strong revenue growth
-- Underlying revenue growth across all geographies
-- 94% of FY O9 revenues are recurring, contracted and expected
- Global launch of LORENZO progressing according to plan
- Expect to reinstate dividend in FY 09
Executive Chairman and CEO of IBA Health, Gary Cohen said: "We have achieved profitable revenue growth in the first half, driven by solid recurring revenues across all our geographies. We are continuing to benefit from global investment in health IT by governments worldwide, and the computerisation of healthcare records."
OPERATIONAL PERFORMANCE
In the first half, the company had additional contracted revenues totalling A$78 million, with an average value in excess of A$1 million and more than a third having contract periods of three years or longer. The majority of the company's revenues come from relationships with the public sector.
The company sees further opportunities from its international footprint as governments continue to spend on health IT initiatives.
An EBITDA margin of 24.5% was achieved in the half, which was above full-year guidance of 23%. Planned operational expenditure investments have been made. The higher margin is due to stronger sales margins than planned in the first half.
As advised in guidance, issued at the release of our fiscal 2008 results, operational expenditure investments have been made in the first half, including additional key executives. The new operating structure and business model put in place at the end of fiscal 2008 has achieved traction.
Cash flow in the first half was affected by a total of A$42 million in timing and phasing differences that are cyclical, in addition to a A$12 million part-settlement of the closedown of the existing services agreement in the UK. The company expects that net operating cash in the second half will be positive.
The company continues to operate well within its debt covenants, and expects to pay down contract financing in the second half, resulting in a reduction in net debt by the end of the fiscal year. The Board continues to expect to pay a dividend for FY 09.
CHANGE OF NAME TO iSOFT
As part of an ongoing exercise to strengthen the Group's position in the market, IBA Health has implemented the iSOFT brand for the group's products and services globally. This supports and underpins the marketing activity for the strategic LORENZO platform. The roll-out of LORENZO for the UK NPfIT program is on track with the current agreed timetable.
The stabilisation of customer relationships and market position, as well as the excellent reception experienced for the iSOFT branding launch, has led the Board to seek shareholders' approval to change the company's name to iSOFT Group Limited (ASX:ISF).
Commenting on the results, Gary Cohen said: "We are pleased with our first-half performance, and we are on track with our full-year guidance. We have consolidated our position as one of the world's leading providers of health IT solutions, and look forward to further opportunities as governments continue to introduce spending initiatives in our industry. IBA Health is pleased to reaffirm guidance for fiscal 2009 of revenues between $540 - $560 million, and EBITDA of between A$120 - A$130 million. The prior 12 months reflects the first full year of post-acquisition operations, and shows strong profit, revenue and cash flow performance."
RESULTS BRIEFING
A presentation of the half-year results is scheduled to be held at 11:00am (AEST) at:
Intercontinental Hotel, Heritage Room,
117 Macquarie Street, Sydney
A live webcast of the results presentation will be available via the following webcast link:
http://www.brr.com.au/event/55128
The webcast will include a copy of the presentation together with a live audio transmission and an archived version will remain accessible after the event through the same link.
A copy of the presentation will be available on IBA's web site www.ibahealth.com and the ASX www.asx.com.au.
Contact
Gary Cohen
Executive Chairman & CEO
IBA Health Group Limited
Tel: +61-2-8251-6700
Email: gary.cohen@ibahealth.com
Stuart Kelly
Director Corporate Affairs
IBA Health Group Limited
Tel: +61-2-8251-6769
Mobile: +61-404-082-361
Email: stuart.kelly@ibahealth.com
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