Financial Results

 

Clarius Group Limited (ASX: CND) reported a 3 per cent decrease in revenue to $136 million for the half year ended 31 December 2011.

 

The Company posted a net profit after tax (NPAT) of $1.3 million for the period to 31 December down from the previous corresponding period to December 2010 of $2.4 million. Challenging market conditions have led to a negative impact on hiring sentiment which has impacted permanent placement revenue.  Despite these conditions, the company has continued to see stability in contracting demand and revenues.

 

Operating cash flow for the half was negative $4.1 million with gearing at balance date of 4%. This was largely attributed to an increase in demand for working capital driven by an increase in the volume of contractors. A large client also delayed payment past balance date which added to the debt position. This issue was resolved early January.

 

Staffing levels remained constant for most of the half, with a reduction seen in the latter part of 2011 which has continued into this half. In some regions, headcount has increased to capitalise on stronger demand for services. Some of this new headcount will increase productivity in H2.

 

Increased investment in Asia with the establishment of the Candle brand in Hong Kong and Singapore combined with a restructured busines under new leadership in Lloyd Morgan China will enable us to deliver to a market that shows strong demand and need for our services.

 

The December 2011 half also saw an increase in the contribution of the Managed Services business through the Ignite brand.

 

Overall the group is in sound position with little gearing, un-drawn financing facilities and the potential to raise capital if the need arises. The Board believes the group is in a financial position to continue to grow both organically and by acquisition should opportunities arise.

 

The Board have resolved to pay an interim dividend of $0.01 cents per share, fully franked, payable on 26 March 2012 and that the Dividend Reinvestment Plan operate with a 2.5% discount in relation to this interim dividend.

 

Annual Results at a Glance

Year ended 30 June

2011

2010

2009

Revenue

$267m

$266m

 

$293m

 

Group Profit

$4.7m (1)

$3.0m 

 

$3.2m (2)

 

Dividend per share (cents)

4.0c

-

 

-

 

Basic Earnings per Share (cents)

(11.9)c

3.8c

 

(14.0)c

 

 

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

(2) Pre one off non-recurring costs and impairment