Coffey achieves 58% profit growth and continues its international expansion

Posted January 30th, 2009 by Coffey Internat...

(Sydney, Australia – 26 February 2007)The directors of Coffey International Limited (ASX: COF) today announced record half year earnings before interest, tax and amortisation of $13.9 million for the half-year ended 31 December 2006, up 58% on the previous year. This profit result is on a 44% increase in revenue to $159.5 million.

The post-tax result after amortisation of intangible assets was $5.6 million, representing earnings per share of 7.3 cents. Earnings per share prior to amortisation was 10.1 cents.

The directors have declared an increased fully franked final dividend of 7 cents per share, up from 5 cents for the corresponding period, and representing 69% of earnings per share before amortisation. This dividend is consistent with the company’s policy of 60 - 80% payouts.

Managing director Roger Olds said, “The 58% profit growth reflects both organic growth in our consulting and project management businesses and a strong performance from the six businesses we have acquired this financial year.”

“The markets for our multi-specialist services continue to be buoyant. As well as growing domestically, in the past year we have established a significant presence in several international markets which offer substantial growth prospects, including the UK, New Zealand and South Africa,” he added.

The company completed an $80 million 2 for 7 non-renounceable rights issue in December 2006, thereby creating an excellent financial platform to fund its future growth strategy.

Outlook

Roger said the outlook for continuing growth in Coffey’s consulting and project management divisions remained strong, with investment in the physical infrastructure, resources and development markets expected to be strong for the foreseeable future.

Several good project wins by Coffey International Development in the past six months reflect the good strategic work that has been done in this business, and it is now well placed to deliver good profit growth as well as becoming a global player in this market

Coffey continues to have several acquisition opportunities at either the advanced negotiation or due diligence stage.

Results summary

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31 December 2006

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31 December 2005

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