Transition pays off for Greencap

Perth-based small-medium enterprise investor Greencap Ltd has turned around fiscal 2007's loss to a net profit of nearly $4 million for the 2008 financial year and exceeding its own expectations.

The company posted a net profit after tax of $3.9 million after reporting a loss of $1.8 million from the previous year.

Greencap had previously forecast earnings to reach $3.775 million.

The result is on the back of the company reinventing itself from a wound care products company into a risk management group during the 2008 financial year.

During the course of the year Greencap acquired six risk management service businesses following a $15 million capital raising and the establishment of a $7.7 million debt facility.

Revenue during fiscal 2008 reached $38.9 million while operating cash flows were $4.3 million.

Chairman Andrew Gay said the outlook for the company is strong with solid order books and continuing high level of productivity.

He added that the recent acquisitions of Adelaide consultancy AEC Environmental Pty Ltd and the Environmental & Licensing Professionals will lift annualised revenue to over $46 million and earnings before interest and tax of in excess of $7.5 million.