PROFIT INCREASE BUT ROOM FOR IMPROVEMENT FOR CARDNO

Written on the 19 August 2014

PROFIT INCREASE BUT ROOM FOR IMPROVEMENT FOR CARDNO

CARDNO Limited (ASX:CDD) has posted a full year profit of $78.1 million, in the face of challenging international market conditions.

Net profit after tax was 0.6 per cent higher than FY13, with a 2.7 per cent increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to $141.7 million.

Severe weather conditions in the US and mining slowdown in Australia adversely impacted the infrastructure and environmental firm’s key projects.

Chairman John Marlay says although the result is marginally higher, Cardno will focus on strengthening its financial position in FY15.

“During FY14 we experienced lower than expected levels of organic revenue growth and reduced EBITDA margins,” Marlay says.

“While we are not satisfied with this level of performance, we endorse efforts taken by management to deliver this result and to better position us for improved performance.”

The decline was partially offset by the recent acquisitions of Cardno Haynes Whaley and Cardno PPI, as well as streamlined operations and the closure of 17 surplus offices.

CEO Michael Renshaw (pictured) says conditions are expected to improve in the second half of FY15, as economic activity in the US improves.

“Our teams are focused on organic revenue growth and on improved operational efficiency,” Renshaw says.

“Overall we expect improved performance in FY15.”

Renshaw says the Australian and New Zealand markets remain challenged with a gap between reduced resources investment and increased spend on government infrastructure and private sector development.

The full year dividend of 36 cents per share has been maintained, with a final fully franked dividend of 17 cents to be paid on October 10.

The announcement follows Cardno’s successful closure of its initial US$150 million private placement note offering yesterday.

The transaction is divided between US$50 million with a seven year term and US$100 million with a 10 year term.

The offering will diversify the company’s funding sources and extend its maturity profile with a better value, compared to existing debt facilities.


Latest News

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

SUPREME COURT GRANTS LEAVE FOR CLASS ACTION AGAINST DICK SMITH

A CLASS action law suit against Dick Smith has been given the green light for shareholders impacted by the company...

NEXTDC SHARES SOLD OFF AS ONGOING SPAT WITH 360 CAPITAL CONTINUES

SHAREHOLDERS in data centre operator NextDC (ASX: NXT) have dumped their stock in the company as its ongoing war of w...

SURVEY SAYS COUNTEROFFERS MIGHT BE A WASTE OF MONEY

TO RETAIN the best and brightest employees it sometimes seems like a good idea to offer more money, but recent res...

Related News

SUPER RETAIL GROUP SAYS GOODBYE TO AMART SPORTS BRAND

A BRAND synonymous with Australian sporting goods, Amart Sports, will be retired from 1 November 2017. Super R...

SUPREME COURT GRANTS LEAVE FOR CLASS ACTION AGAINST DICK SMITH

A CLASS action law suit against Dick Smith has been given the green light for shareholders impacted by the company...

NEXTDC SHARES SOLD OFF AS ONGOING SPAT WITH 360 CAPITAL CONTINUES

SHAREHOLDERS in data centre operator NextDC (ASX: NXT) have dumped their stock in the company as its ongoing war of w...

SURVEY SAYS COUNTEROFFERS MIGHT BE A WASTE OF MONEY

TO RETAIN the best and brightest employees it sometimes seems like a good idea to offer more money, but recent res...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter