Financial Results

 

Financial Performance on Results for Half Year Ended 31 December 2012

 

  • Operating revenues of $123 million – down 9% on pcp
  • Net profit after tax of $0.14 million before restructuring costs –  vs pcp of $1.36 million
  • Earnings before interest, tax and restructuring costs of $0.43 million –  vs pcp of $2.34 million
  • Net loss after tax of $0.47 million after restructuring costs vs pcp $1.34 million
  • Loss per share of 0.53 cents vs pcp of 1.51 cents earnings
  • Gearing of 0.5% with net debt of $0.37 million

 

Clarius Group Limited (ASX: CND) reported a 9 per cent decrease in revenue to $123 million for the half year ended 31 December 2012.

 

The Group posted a net loss after tax and restructuring costs (NPAT) of $0.47 million for the period to 31 December, down from $1.34 million in the previous corresponding period. Challenging market conditions and their ongoing negative impact on hiring sentiment has continued to impact permanent placement revenue and to a lesser extent contracting demand and revenues. As a result of this market uncertainty and pressure on profitability the Group has continued to focus on cost reductions and business efficiency.

 

Operating cash flow for the half was $3.34 million with gearing at balance sheet date of 0.5%.  This was in part attributed to a decrease in working capital driven by the lower volume of contractors, as well as stringent trade receivables management.

 

Staffing levels across the Group have decreased in the first half from 315 to 273. In Australia, New Zealand and Hong Kong the headcount reduced by 51, while in China the headcount increased by 9 to capitalise on stronger demand for services. 

 

Investment has continued in the payroll and invoicing system integration project which will allow for greater scalability and efficiencies.  This project is proceeding well and is on track to be completed in calendar 2013.

 

The new leadership in Lloyd Morgan China is gaining traction in a market that shows strong demand and need for their services with both revenue and profit ability increasing in the second quarter. An additional office is being established in a new region in China to take advantage of local market conditions.

 

The December 2012 half also saw an increase in the contribution of the Managed Services business through the Ignite brand.

 

Overall the Group remains in a sound financial position with little gearing and un-drawn financing.

 

Interim dividend

 

Given the results for the period, the Board have resolved not to pay an interim dividend. 

 

 

Annual Results at a Glance

Year ended 30 June

2012

2011

2010

Revenue

$273m

$267m

 

$266m

 

Group Profit

$2.1m (1)

$4.7m (2)

 

$3.0m

 

Dividend per share (cents)

1.0c

4.0c

-

 

Basic Earnings per Share (cents)

(10.6)c

(11.9)c

3.8c

 

 

(1) Before non cash impairment write down

(2) Before non cash impairment write down and de-recognition of tax losses