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Coffey reaffirms guidance

SUBSTANTIAL earnings growth has spurred project consultancy Coffey International to a half-year profit, which has allowed the company to reaffirm its full-year earnings guidance.

Kristie Batten
Coffey reaffirms guidance

After a full-year earnings before interest, tax, depreciation and amortisation loss of $A39.7 million, the focus for Coffey was turning its results around.

Underlying EBITDA jumped 47% to $23 million, while earnings before interest and tax jumped 262% to $18.5 million.

Revenue dropped 9% to $334.8 million after an increase in revenue for the geosciences division couldn’t offset a slight fall in revenue for the international development and projects divisions.

Net profit after tax soared 199% to $4.6 million, up from a $4.7 million loss in the same period of 2010 and a loss of $65 million for the June 2011 half-year.

“We have made some tough decisions in the past year,” Coffey managing director John Douglas said.

“This result shows that the benefits of these decisions are starting to flow through.

“There are positive signs that a turnaround is well underway and that we are building a base for profitable growth.”

As a result of a $40 million capital raising completed in October, as well as improved working capital management, net debt decreased to $77.5 million from $121.2 million.

The gearing ratio was reduced to 32% from 50%.

The result led Coffey to reaffirm its full-year EBITDA guidance of $45 million, which would be a huge improvement on EBITDA of negative $39.7 million for the 2011 financial year.

“Coffey’s three key businesses are well-positioned – our markets remain positive with the improved performance in our continuing operations expected to continue for the next half,” Douglas said.

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