21/02/2008 - 15:48

ISS Group net profit up 36%

21/02/2008 - 15:48

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Specialist mining and energy software developer, ISS Group Ltd, has reported a significant boost in both revenue and profit for the six months to December 2007.

Specialist mining and energy software developer, ISS Group Ltd, has reported a significant boost in both revenue and profit for the six months to December 2007.

Revenue for the Nedlands-based company increased to $7.3 million (up 51 per cent on the comparative period) and profit before tax and non cash share based expense rose to $1.7 million, up 135 per cent for the period.

Net profit after tax increased to $0.8 million (up 36 per cent).

ISS said it continued to maintain an excellent cash position, currently at $3.4 million, with net working capital
of $6.0 million up $1.0 million for the half.

The cash position is after the November 07 AUD 6 cent capital return per share providing a tax effective return in the order of 15 per cent on the current share price.

The company's operations - ISS Group Europe, ISS Group Asia and ISS Group Australia all contributed, with each posting excellent results due to increased activity on existing projects as well as new customer contracts.

As noted above, the half year result is reduced by the non cash options expense as required by Australian Accounting Standards.

ISS said the improved operating results vindicate its decision to invest and expand internationally while still maintaining a focus on the local operations in Australia.

While the company was in a strong position to pay an interim dividend, ISS said it wad not in the best interests of the company or shareholders to pay an interim dividend that does not have the benefit of franking credits attached.

ISS will look to establish a regular dividend program once sufficient tax franking credits have accrued.

The company will also explore other tax effective means of distributing cash returns to shareholders.

Shareholders received AUD 6.0c per share capital return in November 2007.

ISS shares gained 5 cents, or 13.16 per cent, to close at 43 cents each today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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