ITL HEALTH GROUP LTD 
By 7 February 2013
ASX ANNOUNCEMENTITL POSITIONED FOR GROWTH AFTER SOLID FIRST HALF
• Profit after tax of $1.5m (prior comparative period $1.1m)
• First half earnings per share increases from 0.8 to 1.4 cents
• Profit after tax from Continuing Operations of $1.47m (prior comparative period $1.53m)
• EBITDA from Continuing Operations of $1.9m (prior comparative period $2.2m)
• Positive operating cash flow of $1.8m
• Low gearing (6%) with net debt of $0.7m
ITL Limited (ASX.ITD) is pleased to announce its consolidated half year financial results for the period ended 31 December 2012 which have been subjected to audit review by the Group's auditors Ernst & Young.
The Group reported profit after tax of $1.5m which was a 36% improvement on the $1.1m profit reported for the same period last year. The latter included a loss of $0.4m from the ITL Healthcare SEA business which was sold effective 1 January 2012.
Profit after tax from Continuing Operations reduced by 4% to $1.47m. Revenue for the Innovative Products Group decreased slightly due to the impact of the adverse foreign exchange movement and subdued market conditions, and, Healthcare Australia revenue also declined due to the completion of major hospital contracts. This impact was largely offset by lower operating expenses and improved gross margins reflecting improved manufacturing efficiencies, lower purchasing costs and nil inventory writedowns.
The result also reflected the write back of previously unrecognised prior year tax losses in Australia. Given this situation, it is not anticipated that any tax will be payable in Australia for this financial year.
The Group reported positive operating cash flow of $1.8m (prior comparative period $2.1m), which together with increased borrowings was used to fund the ongoing share buyback. This was an effective
means of returning surplus capital to shareholders and enabled the Group to maintain an efficient capital structure.
The Group's gearing at 31 December 2012, measured as net debt as a percentage of net debt plus equity, was 6% (30/6/12: nil).
ITL is a diversified healthcare company, specialising in innovative medical devices and procedure packs for global healthcare markets. ITL manufactures in Australia and Malaysia, and has sales offices in Australia, North America, and Asia.
ITL's patented medical devices have a presence in over 35 countries and protect healthcare workers in millions of procedures annually. ITL supplies its range of customised medical procedure packs to over 200 hospitals across Australia.
Australian Securities Exchange
Code: ITD
Ordinary Shares
94,932,839
Board of Directors
Bill Mobbs Executive Chairman Sanjay Sehgal Non-executive Director Julian Gosse Non-executive Director
Trevor Doolan Company Secretary
David Holden Chief Financial Officer
ITL Contact
Bill Mobbs Executive Chairman
Phone: +61 3 8773 3050
Email: info@itl-limited.com
www.itl-limited.com
Second half year revenue for Healthcare Australia is anticipated to be significantly below the first half. Potential new growth opportunities are not expected to be realised until the end of this financial year.
The Health Support Services Agency of the NSW Government has advised that Healthcare Australia had been successful in its tender to be an approved supplier of custom sterile packs to NSW public hospitals for the 3 year period to January 2016. This is a large market and ITL has not been a supplier in recent years. ITL now has the opportunity to participate in specific NSW public hospital contract tenders as they arise.
In addition, Healthcare Australia has been awarded status as sole supplier of intravenous cannula insertion packs for W.A. public hospitals for the period to March 2014. Sample packs have been supplied and are currently being trialled at three sites and it is hoped that firm sales orders will emerge in the next few months.
The strength of the Australian dollar against the US dollar has impaired reported revenue growth in Australian dollar terms for the Innovative Products Group. However, new business opportunities, expanded distribution arrangements in the U.S., entry in to new markets and new product development will generate future growth.
Given the lower second half revenue outlook for Healthcare Australia, combined with the need to increase resources to support business growth for both divisions, it is anticipated that second half profit results will be below that achieved in the first half.
The current share buyback scheme will remain in place as part of the Group's capital management plan. As at close of 6 February 2013, there were 14,248,647 shares that could be bought back under the currently approved scheme which concludes on 22 August 2013.
In summary, the Board and management are committed to profitable growth of the Company so as to continue to improve returns to shareholders.
Bill Mobbs
Executive Chairman
ITL (ASX: ITD, www.itl-limited.com) is a diversified healthcare company, specialising in innovative medical devices, procedure packs and medical equipment for global healthcare markets. ITL manufactures in Australia and Malaysia, and has sales offices in Australia, North America and Asia.
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