PERTH, Western Australia: Neptune Marine Services Limited (ASX: NMS, Neptune or the Company) wishes to provide an update on expected results for the second half of FY2012, prior to lodging its preliminary final report in August for the period ending 30 June 2012.
Based on unaudited management accounts, Neptune expects to record a positive EBITDA result for the second half, although less than the first half, with the key features for the second half being:
- Revenue of circa $56M from continuing operations.
- Increase in cash over the half from $4.6M to $7.8M.
- No term debt.
- Hire purchase / equipment lease liability of less than $1.0M.
- A strong net working capital position of $27M.
Business performance across the whole company has been profitable and cash positive and therefore, on a consolidated basis, group goodwill is appropriate. However, variability in the performance of some underlying individual businesses is likely to result in goodwill impairment for those businesses. As required by accounting standards, the Company will do a full assessment of any impairment requirements for the year-end financial statements. Any impairment required would not affect the underlying cash position or cash performance of the Company.
Neptune Chief Executive Officer Robin King said: “While the Company continued to face strong competition in the second half of the year, it was pleasing that revenue remained strong and broadly in line with the first half.
“Even more pleasing is that Neptune, was operationally cash flow positive for the full year, has zero term debt and is beginning the new financial year with an improved cash position.
“Operationally, Neptune has successfully completed the restructuring plan during the year and continues to focus on efficiencies and building a robust business going forward. However, all elements of the business will continue to be reviewed to achieve the level of profitability that delivers shareholder value.”