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Hansen Technologies Announces Record Profit

  • 22 February, 2008 13:47

<p>Melbourne, 22 February 2008
Hansen Technologies Limited (ASDX:HSN) is pleased to confirm a record profit for the first half of the 2007/8 fiscal year and an increase to the interim dividend.</p>
<p>The Directors of Hansen have declared an unfranked interim dividend of 4 cents per share for the first half of this fiscal year. Three cents was paid to shareholders in December 2007, leaving an additional 1 cent per share or $1.5 million approximately to be distributed in March 2008. The Record Date for the additional 1 cent per share interim dividend will be 4 March 2008 and payment will be dispatched to shareholders on 19 March 2008.</p>
<p>Highlights of the financial results for the 6 months to December 2007 include:
- Revenue from operations of $22.1 million,
- Earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.9 million, being;
- $6.1 million from operations, representing a 117% increase on the previous year, plus
- $8.8 million profit on sale of the NSW based outsourcing business, after allowing for all costs associated with the sale and related sale adjustments. (Note: this is a reduction from the $9.4 million profit previously projected).
- After tax profit of $12.2 million or 8.1 cents per share, being an $11.4 million increase on the $0.8 million in the previous year,
- Considerable strengthening of the company's financial position since June 2007;
- Net equity increased to $42.8 million, or 28 cents per share,
- Net tangible assets increased to 15.2 cents per share,
- Cash on hand $20.2 million (after payment in December 2007 of the initial interim dividend of 3 cents per share or $4.5 million approximately),
- Zero third party debt.</p>
<p>Andrew Hansen, CEO, Hansen Technoloiges, said in announcing the record results, “The first six months of this fiscal year have been a very satisfying period for our company. We have continued to build upon the strong progress achieved last year.</p>
<p>“It is extremely pleasing to note that in spite of the sale of our NSW outsourcing business, and the natural reduction in revenue as a result, we have been able to deliver an absolute year-on-year improvement in all other financial measurements.</p>
<p>“To obtain a better gauge of the full extent of the improvement in performance of our Group it is worthwhile comparing the performance being reported here with that of last year, after both periods are adjusted to exclude the impact of the NSW outsourcing business which was disposed of in August 2007.</p>
<p>This analysis reveals the following facts of interest;
- Revenue from ongoing operations has increased by 30%
- EBITDA from ongoing operations was $5.7 million, up $3.7 million or 185%
- EBITDA as a percentage of sales increased from 13% to an adjusted 29%
- Profit/Earnings before tax (EBT) of $4.5 million, (before accounting for the profit on sale of the NSW subsidiary), is a $4.2 million improvement on the $0.3 million of the previous year.</p>
<p>“We have delivered a strong start to this fiscal year. Looking ahead, there are new project opportunities in the pipeline and with the rationalisation of our business units complete we are now exploring new strategic growth opportunities.</p>
<p>“Last year’s second half performance was very strong and it will be a challenge to match that level of operating result in the second half of this year. Our performance in the second half will, as usual, depend upon the timing of key projects. Nevertheless. I am confident we will deliver a full year result which will continue to be an absolute increase on last year, even taking into account the full year impact of the sale of our NSW outsourcing subsidiary. A conservative outlook for this fiscal year would project an EBITDA exceeding $17.5 million.</p>
<p>“Furthermore we are currently budgeting to fully utilise our carry forward tax losses during this fiscal year. If the results for the second half of this fiscal year are in line with our outlook we expect to be in a position to have franking credits available to attach to any dividend which may be declared in the second half of this calendar year.”</p>
<p>About Hansen Technologies (</p>
<p>Hansen Technologies Limited is a leading provider of proprietary billing solutions and IT outsourcing services. Its flagship HUB billing software solutions have application across the Telecommunication, Electricity, Gas and Water industries. HUB is increasingly providing the solution for the needs of energy companies as the push towards market deregulation expands and into telecommunication companies as they pursue convergence and rationalisation. Hansen provides facilities management and outsourcing services from its purpose-built data centres located in Melbourne. Founded in 1971, Hansen has offices in Australia and the United Kingdom and supports solutions around the world.</p>

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