ADBRI LIMITED Level 1 157 Grenfell Street Adelaide SA 5000 GPO Box 2155 Adelaide SA 5001 | Adelaide Brighton Ltd ACN 007 596 018 | Telephone (08) 8223 8000 International +618 8223 8000 Facsimile (08) 8215 0030 www.adbri.com.au |
31 August 2016
The Manager
Market Announcements
Australian Securities Exchange Limited 20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
Results for announcement to the market - half year ended 30 June 2016We attach Appendix 4D Half Year Report in accordance with Listing Rule 4.2A and management discussion covering the half year ended 30 June 2016 for release to the market.
Yours faithfully
MRD Clayton Company SecretaryFor further information please contact: Luba Alexander
Group Corporate Affairs Adviser
Telephone 0418 535 636
Email luba.alexander@adbri.com.au
Adelaide Brighton Limited Appendix 4DHalf year ended 30 June 2016
Results for announcement to the market
Company name: | Adelaide Brighton Limited |
ABN: | 15 007 596 018 |
Reporting period: | Half year ended 30 June 2016 |
Previous corresponding period: | Half year ended 30 June 2015 |
Release date: | 31 August 2016 |
A$m | ||||
Revenue from continuing operations | up | 1.2% | to | 686.0 |
Earnings before interest and tax (EBIT) | down | 5.1% | to | 110.8 |
Net profit for the period attributable to members | down | 6.7% | to | 77.1 |
Dividend | Amount per security | Franked amount per security | |
Current period | Previous corresponding period | ||
Interim ordinary dividend | 8.5¢ | 8.0¢ | 100% |
Interim special dividend | 4.0¢ | 4.0¢ | 100% |
Record date for determining entitlements to the interim dividend | 15 September 2016 |
Payment date for interim dividend | 12 October 2016 |
30 June 2016 | 30 June 2015 | |
Net tangible asset backing per ordinary share | $1.41 | $1.39 |
The Adelaide Brighton Limited Board advises that the Company's Dividend Reinvestment Plan remains suspended until further notice.
Key Points
Revenue of $686.0 million, up 1.2% compared to previous corresponding period (pcp)
EBIT down 5.1% to $110.8 million, due to lower profits from property sales
Excluding property profits EBIT up 6.6% to $110.6 million
Reported net profit (NPAT) down 6.7% to $77.1 million, due to lower property profits
Excluding property profits, NPAT up 7.8% to $75.8 million
Operating cash flow up 16.5% to $97.6 million
Interim ordinary dividend of 8.5 cents per share, franked to 100%, up 0.5 cents
Interim special dividend of 4.0 cents per share, franked to 100%, in line with the pcp
Basic earnings per share declined 7.0% to 11.9 cents, due to lower property profits
Excluding property profits, EPS up 7.6% to 11.7 cents
Gearing1 at 29.1% (29.8% at the pcp)
Financial Summary
Statutory basis | 6 months ended 30 June | ||
($ million) | 2016 | 2015 | % change pcp |
Revenue | 686.0 | 678.1 | 1.2 |
Depreciation and amortisation | (40.1) | (37.9) | 5.8 |
Earnings before interest and tax ("EBIT") | 110.8 | 116.8 | (5.1) |
Net finance cost2 | (6.1) | (6.5) | (6.1) |
Profit before tax | 104.7 | 110.3 | (5.1) |
Tax expense | (27.6) | (27.7) | (0.4) |
Net profit after tax | 77.1 | 82.6 | (6.7) |
Non-controlling interests | - | - | - |
Net profit attributable to members ("NPAT") | 77.1 | 82.6 | (6.7) |
Basic earnings per share (EPS) (cents) | 11.9 | 12.8 | (7.0) |
Ordinary dividends per share - fully franked (cents) | 8.5 | 8.0 | |
Special dividends per share - fully franked (cents) | 4.0 | 4.0 | |
Net debt3 ($ million) | 345.4 | 346.1 | |
Gearing1 (%) | 29.1% | 29.8% | |
1 Net debt/equity
2 Net finance cost is the net of finance costs shown gross in the Income Statement with interest income included in revenue
3 Net debt is calculated as total borrowings less cash and cash equivalents
Summary of Results
Net profit after taxAdelaide Brighton Limited net profit after tax (NPAT) for the half year ended 30 June 2016 declined 6.7% to
$77.1 million due to lower property profits compared to the previous corresponding period. Property transactions contributed $1.3 million to NPAT in the half year, compared with $12.3 million in 1H15.
Excluding property transactions NPAT was up 7.8% to $75.8 million, reflecting revenue and margin growth in the wholly owned business and a stronger contribution from joint operations.
RevenueRevenue of $686.0 million was up 1.2% on 1H15. Improved prices and strong demand in the New South Wales, Victoria, Queensland and South Australia partially offset slowing demand in Western Australia and the Northern Territory.
Earnings before interest and taxEarnings before interest and tax (EBIT) declined 5.1% to $110.8 million. Excluding property, EBIT was up 6.6% to $110.6 million, representing an expansion in EBIT margin from 15.3% in 1H15 to 16.1% in 1H16.
MarginsMargins were assisted by price increases in all products and volume growth in concrete, aggregates and concrete products. Reduced energy costs in Western Australia and improved earnings from the joint operations in the eastern states were also positive for the group margin compared to 1H15. Total Group energy costs (including electricity, gas, coal, diesel and alternative fuels) are expected to be $9 million less than pcp.
These offset the impact of reduced cement volume in Western Australia and Northern Territory and higher import costs due to a weaker Australian Dollar.
Operating cash flow and debtOperating cash flow was a positive feature, increasing by $13.8 million to $97.6 million due to revenue and margin growth, partially offset by higher income tax paid. Net debt to equity gearing was 29.1% at 30 June 2016.
DividendsThe Board declared an interim ordinary dividend of 8.5 cents per share and a special dividend of
4.0 cents per share, both franked to 100%. This is a 0.5 cent increase in ordinary dividend and an unchanged special dividend compared to 1H15.
The Record Date for the interim ordinary and special dividend is 15 September 2016 with payment on 12 October 2016.
The special dividend takes into consideration Adelaide Brighton's strong cash flow, low gearing, current capital expenditure outlook and availability of franking credits.
Adelaide Brighton Limited published this content on 31 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 September 2017 05:58:07 UTC.
Original documenthttp://adbri.com.au/-/adbri/lib/pdfs/2016/asx announcements/ASX June 16 Half Year Rpt & 4D & Audit Rpt & Cover Sheet.pdf
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