Coffey delivers strong earnings results

Key highlights for the 12 months ended 30 June 2008 included:

• Revenue up 54.0% to $558.6 million (12 months ended 30 June 2007: $362.7 million)
  
• NPAT up 81.8% to $15.3 million (2007: $8.4 million)
  
• Cashflow from operating activities of $58.6 million (2007: $6.2 million)
  
• Final dividend of 9 cents per share, fully franked, resulting in a total dividend of 16 cents per share (2007: 15 cents per share)
  
• Finance systems and controls resolved.
  

Coffey managing director Roger Olds said he was very pleased with the company’s performance.

“We have delivered within guidance, resolved our finance system and controls and improved our financial management at both the corporate and business levels. This is reflected in the strong earnings and operating cash results.

“In retrospect, the implementation of the finance system in the 2007 financial year had a bigger impact than we thought. However, the issues are behind us and despite the restatement to 2007 earnings, we have more than doubled our net profit after tax and pre share-based payment expense over the past three years.

“In the 2008 financial year, we delivered a great deal and have built a strong platform for future company growth.

“We continued our strategy to diversify our services, geographies and sectors to support an ongoing high rate of growth and to provide a buffer against a downturn in any one area. Today, we are a robust and flexible company operating across the full lifecycle of infrastructure development.

“We acquired 10 companies during the past 12 months, including entry into rail, infrastructure transactions and sporting infrastructure. We also expanded into Brazil and Canada and increased our market position in the United States, United Kingdom and South Africa. All of these acquisitions are being integrated and are performing well.

“In a time when companies are experiencing difficulty attracting skilled staff, we have grown by around 2,000 people through organic growth and acquisition, and now have some 4,200 people.

“The directors have declared a fully franked final dividend of 9 cents per share, resulting in a total dividend for FY08 of 16 cents per share,” Roger said.

Earnings per share (EPS) before amortisation, vendor earn out and share-based payment expense has increased from 16.0 cents per share to 20.8 cents per share.

“We expect to see strong growth in shareholder value.

“Our balance sheet is strong and we have improved our working capital position. In February, we announced refinanced group debt facilities, increasing our overall facilities from the previous $115 million to a new $200 million syndicated facility. Our strong financial and capital position allows us to pursue attractive acquisition opportunities as they arise.

“Our operating performance over the final quarter of the 2008 financial year was in line with our three-year plan from 2005 of an annualised operating EBITA of $70m. Our challenge is to continue to deliver at this rate over the full 12 months, given historical seasonality.

“The outlook over the next 12 months and beyond is positive. We operate in attractive markets with strong long-term fundamentals. Demand for infrastructure and resource projects will continue to grow strongly over the medium term. Worldwide international development expenditure is also forecast to grow substantially and we now have an excellent global profile to meet this demand. With operations in 80 countries across multiple sectors, the company is very well placed to continue its strong growth.

“We have a sound strategy in place to grow the company through organic, transformation and acquisition growth and we will continue to focus on the number one position in each of the markets in which we operate.

“This is an exciting era for Coffey. We really are just starting to see some of the benefits of our strategy come together; to create a multi-specialist consulting company with a global footprint that can make a significant difference in the world,” Roger said.

-ends-

Media contacts

Diana Krause, Communications Manager, Coffey International Limited
P: (+61) (3) 9473 1300; M: (+61) 420 959 942; E: diana_krause@coffey.com

Brigitte Claney at Mendleson Communication
P: (+61) (3) 9827 0422; M: (+ 61) 412 189 558; E: brigitte@mendleson.com.au

Investor contact

Debbie Goodin, Acting Chief Financial Officer, Coffey International Limited
P: (+61) (3) 9473 1300; M: (+61) 409 515 873; E: debbie_goodin@coffey.com

Coffey group results summary

(1) Restated

(2) Vendor earn out and share-based payment expense relates to the current year expense for vendor cash paid performance earn outs and the fair value of shares issued to vendors on acquisition that are tied to employment conditions.

Segment results