Cardno announces record profit up 24.4%

8/18/2009

Global infrastructure services consultancy Cardno Limited (ASX: CDD), today announced a record net profit after tax of $34.15 million for the year ended 30 June 2009, a 24.4% increase over the 2008 financial year. 
Cardno recorded a 29.3% increase in revenue to $515.84 million from $399.0 million last year, and diluted earnings per share increased 6.0% to 43.82 cents.
 
The Board has declared a fully franked final dividend of 14 cents per share to be paid on 13 October 2009 to all shareholders registered on 15 September. With the interim dividend of 14 cents per share in February 2009, this will result in a full year dividend of 28 cents, which is 3.7% above last year’s total of 27 cents.
 
The company’s balance sheet is strong with low gearing and low net debt. Cardno also has strong operating cash flow of $38.59 million, and had cash of $65.81 million at 30 June 2009.
 
“I am pleased to announce Cardno has delivered another record profit for our shareholders during a period of significant economic uncertainty. This is the fifth consecutive record profit and record annual dividend since listing in 2004 with total shareholder return since listing of 426%” said Cardno Chairman, Mr Massey.
 
“The Board’s strategy of diversifying its operations through acquisitions and growth across multiple geographic regions and disciplines has helped the company reduce the impact of difficult economic conditions.”
 
Mr Massey noted that the annual result was excellent. He also noted that the company’s second half performance had been affected by slower business conditions in some sectors, project delays, the stronger Australian dollar and one-off restructuring costs of around $3.0 million dollars – mostly related to staff redundancy expenses.
 
Managing Director, Andrew Buckley said the global public sector and international development assistance businesses continued to perform strongly and have offset the slower performance with private sector clients.
There are some positive signs for improved market conditions in the 2009/10 financial year, Mr Buckley said.
 
“We have recently been awarded significant long term projects in the public infrastructure and international development assistance markets. Projects such as Cardno TBE’s I-4 Connector in Florida (US$15 million in fees), Queensland’s Logan Water Alliance win and the $150 million PNG Law & Justice Programme position us well for the coming year, although we are still seeing tough conditions in the private development market,” said Mr Buckley.
 
During the financial year Cardno made three acquisitions. The 450-person, Florida-based Cardno TBE has enabled Cardno to significantly increase its presence in the US public infrastructure. In Australia, Cardno acquired two specialist businesses: Cardno Spectrum Survey, a West Australian-based survey and mapping consultancy and Sydney-based Cardno Ecology Lab, an ecology and marine sciences business.
 
Mr Buckley noted that Cardno was well funded to continue its strategy of growth both organically and by acquisition.
 
“Cardno intends to continue its strategy of identifying profitable well managed businesses to join the group and deliver growing shareholder value,” said Mr Buckley.
 
Summary performance for the year ended June 2009:
2009​​2008​Change
Revenue​$ 515.84 m​$ 399.04 m​+29.3%​
EBITDA​$ 57.73 m​$ 50.55 m​+14.2%​
NPAT​$ 34.15 m​$ 27.45 m​+24.4%​
EPS - diluted​43.82 cents​41.34 cents​+6.0%​
Dividend per share​28.00 cents​27.00 cents​+3.7%​
 
* All figures quoted are in Australian dollars.
 
Acquisitions during the 2009 financial year:
 
The Ecology Lab (Cardno Ecology Lab) – August 2008: Cardno acquired an ecology and marine sciences consultancy.
 
Spectrum Survey and Mapping (Cardno Spectrum Survey) – August 2008: Cardno acquired a 51-person, Perth and Kalgoorlie-based survey firm, increasing its representation in the discipline.
 
TBE Group (Cardno TBE) – September 2008: Cardno purchased a 450-person, US-based multi-discipline physical infrastructure and Subsurface Utility Engineering firm substantially increasing Cardno’s presence in the US public infrastructure market.
 
ENDS
 
For further information:
Andrew Buckley, Managing Director, (07) 3369 9822 or 0412 059 526 
Jeff Forbes, Chief Financial Officer, (07) 3369 9822 or 0408 756 790
 
About Cardno: Cardno is a global professional services provider, locally delivering the specialist advice necessary to create or improve the physical and social infrastructure that underpins communities around the world. Our team comprises of leading advisers who plan, design and deliver sustainable projects or community programs. We are an international company, listed on the Australian Securities Exchange [ASX: CDD]. www.cardno.com