Integrated profits fall 60% after hectic year

West Perth diversified labour hire group Integrated Group Ltd has announced a fall of 60 per cent in net profit for the 2005-06 financial year, after what has been a hectic year for the company.

Chairman Neil Hamilton said the result was disappointing but came at the end of a group restructure through which benefits will occur in this financial year.

RESULTS
-Revenue of $446M (up 15%)
-Normalised net profit after tax of $12M from core continuing operations
-Direct loss from discontinued operations (training) of $9.7M after tax
-One off net gain of $0.7M after tax from vessel sales and training disposal costs
-Net profit after tax of $3.0M
-Final dividend maintained at 6 cents per share, fully franked (11c per
share in total)
SUMMARY
Whilst we are disappointed with the final profit result, we are pleased with the continued growth and profitability of the core operations and note that the group restructure is now complete and the benefits will be seen in the results over the next 12 months.
In the second half of the fiscal year just completed;
-new Chief Executive Officer, Mr Chris Sutherland commenced on 30th Jan 2006.
-the training business was sold to TodayCorp
-the offshore vessels were sold to Mermaid Marine in exchange for a 7 year manning services alliance contract
-the organisation was changed to reflect a single flatter operation
-an updated vision for the group established
-a simple plan to grow the business developed and being executed
We remain positive about opportunities in the staffing services market and continue to expect growth in the core earnings of the group.
We expect to grow the business through further branch / geographic expansion, the development of permanent placement revenues, and increasing focus on temp hire in office, commercial, trades, mining and resource markets.
We will continue with the development of our managed labour services in marine, oil / gas and resources markets.
Further growth maybe achieved by acquisitions that add capability or extend our geographic reach in line with the business plan.
The Board, taking into account the strength of the core operations and the completion of the sale of the vessels, has elected to maintain the final dividend at 6 cents per share.
The Directors have completed a review of the Board, as foreshadowed by then Chairman at last year's AGM and following the appointment of Chris Sutherland as CEO.
The objectives of this review were to ensure the company structures are in line with expected norms for good governance and to provide means for succession and refreshing of the Board.
The results of this review are as follows.
A new Board member, Mr Michael Gurry is to be appointed as a Non Executive Director following the retirement of Paul Mclean in July 2006.
The Board has agreed to a process of rotation over the next several years which will see the introduction of a number of new Non Executive Director appointments.
Consideration is being given to expanding the Board by the appointment of an additional Non Executive Director.
The review also concluded, in line with best corporate governance practice, that there should be only one executive member of the Board, the Managing Director / CEO.