UXC Limited (ASX: UXC) has delivered a record half-year result with revenue, EBITDA and NPAT all up strongly over the previous corresponding period (pcp). Revenue for the six months ended 31 December 2007 was $273 million, up 39%; while NPAT at $12.2 million rose 30%.
Among highlights:
- Group EBITDA of $24 million, up 41%
- Fully franked interim dividend of 4.25 cents, up 21%
- Business Solutions Group (BSG) sales growth of 20% to $160.6 million
- Field Solutions Group (FSG) revenue up 79%, earnings up 101%
- FSG ideally positioned in assault on carbon emissions
- Three acquisitions to start the second half
“UXC’s strong performance reflects the organisation’s progress in its mission to be the premier independent solutions group across Australia and New Zealand,” said Geoff Lord, Executive Chairman of UXC.
“Moreover, the group continues to benefit from a continuation of what we see as three sweet spots within which we operate. They are the trend towards selective sourcing in the IT sector in an environment where there is a strong spend; rising state government expenditures on infrastructure; and opportunities, many of them government-backed, in generating environmental solutions.”
Mr Lord said both main business divisions were performing well.
Business Solutions Group
BSG total revenue was $160.6 million with earnings of $14.5 million.
“BSG’s revenue and earnings need to be viewed within the context of an overriding emphasis in the first half to invest in expanding its capabilities. That investment impacted BSG’s margin but will ultimately yield increased revenues, stronger vendor positioning, an enhanced ability to capitalise on opportunities and assist in recruiting and retaining key staff,” said Mr Lord.
Field Solutions Group
“FSG, which is a valued partner with water, gas and electricity utilities, recorded a first half revenue increase of 79% to $111 million and earnings of $12.9 million, up over 100%, driven by substantial growth in its environmental services offering.
“FSG is the market leader in environmental services, metering and meter reading, data management, asset inspection and geographical information services. It conducts a large portion of its business through long-term annuity contracts and, at 31 December 2007, had existing contracts totalling $200 million.”
Mr Lord said the overall outlook was good. “Three new acquisitions post the result date – Getronics Australia, Lucid IT and Intacct - will see second half revenue comfortably exceed that of the first six months. We expect FY08 revenue to approach $600 million.”
Mr Lord also believes FSG’s innovative initiatives in developing a carbon offset program positions the group well to take advantage of societal moves on curbing greenhouse gas emissions.
“Our ‘Enviro Saver Program’ is accredited by the Australian Greenhouse Office (AGO) to create certified carbon credits as part of the federal government’s Greenhouse Friendly Scheme. We are accredited to create carbon abatement through programs targeting residential and commercial properties and the Enviro Saver Program is by far the largest such program approved by the AGO.”