Asset manager PearlStreet has reported a 201 per cent jump in its interim net profit as it maintains its full year revenue guidance.
Asset manager PearlStreet has reported a 201 per cent jump in its interim net profit as it maintains its full year revenue guidance.
The company posted an unaudited net profit of $2.4 million for the half year ending December 31 2008, a massive jump from the previous corresponding period.
Revenue rose 23.6 per cent to $50.3 million while earnings before interest, tax, depreciation and amortisation increased by 59 per cent o $6.7 million.
The directors have declared a fully franked interim dividend of 1.6 cents per share, up from 0.6c.
PearlStreet also reaffirmed its 12 per cent EBITDA margin target for the 2009 financial year.
The announcement is below:
PearlStreet Limited ("PearlStreet") (ASX: PST) announces an unaudited statutory net profit after tax of $2.4 million for the half year ended December 31 2008, a 201 percent increase on the previous corresponding period. On this basis, statutory earnings per share was 3.36 cents up from 1.62 cents previously, and the Directors have declared a fully franked interim dividend of 1.6 cents per share, 0.6 cents previously.
The Company recorded a 23.6 percent increase in revenue to $50.3 million in the first half of FY09. This compares with $40.6 million for the first half ending December 2007.
Managing Director, Mr. Anthony Wooles said "We are very pleased with the half year result. Market share gains, new contracts and an optimised cost structure have lead to a strong half year performance."
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) increased 59% to $6.7 million, versus $4.2 million for the first half of FY08. This represents an EBITDA margin of 13.4 percent. Underlying NPAT was $2.7 million, after adjusting for amortization of customer related intangibles, corresponding to underlying earnings per share of 3.60 cents per share.
Net operating cash inflow increased to $6.1 million from $1.4 million in the half year ending December 31, 2007 reflecting the benefits of post - acquisition integration synergies and rigorous working capital management.
Over the six months since June 2008, net debt reduced to $41.7 million versus $48 million in FY08. On the back of this strong earnings performance, the company remains focused on continuing to reduce gearing levels for the remainder of FY09.
PearlStreet auditors, PWC are in the process of finalizing the half year review.
FY09 Revenue Guidance
PearlStreet advises that the outlook for FY09 remains positive supported by the strong first half results.
"We're highly confident that we will be able to achieve our 12% EBITDA margin target that we've set out," Mr. Wooles said.
The Company maintains its EBITDA margin target of 12 percent and anticipates high single digit revenue growth in FY09.
