ITL Limited : Half Year Results Announcement 31 December 2013

ITL CONSOLIDATES AND INVESTS FOR THE FUTURE

• Group Profit after tax of $1.22m was below the December

• Earnings per share of 1.4 cents is in line with December 2012 half reflecting the ongoing share buyback

• EBITDA was $1.8m (Dec 2012 : $1.9m)

• Positive operating cash flow of $1.6m (Dec 2012 : $1.8m)

• ITL will pay an interim fully franked dividend of 0.5cps on 3

The Group reported profit after tax of $1.22m which was 17% below the
December 2012 half year of $1.47m but a pleasing 22% above the June
2013 half year of $0.99m.
Profit before tax was $1.2m (2012: $1.4m). This reflected 2% lower revenue together with some increase in staff costs to grow and support the business.
Innovative Products Group revenue increased 15% (3% in U.S. dollars) largely due to the impact of the favourable foreign exchange movements but conditions in the U.S. blood banking industry continued to be subdued. Healthcare Australia revenue declined 11% following the completion of major hospital contracts and competitive market place.
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.
Strong ongoing operating cash generation, combined with increased borrowings, was used to fund:

- acquisition of long term leasehold land and an existing medical device factory in Malaysia for $1.4m;

- the ongoing share buyback $1.9m (2012: $3.4m); and,

- payment of the 2013 financial year final dividend of $0.7m.

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

83,905,121

Board of Directors

Bill Mobbs Executive Chairman Sanjay Sehgal Non-executive Director Andrew Turnbull 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
At 31 December 2013 the net debt position was $3.9m compared with the net debt position of $1.3m at 30 June 2013. The Group's gearing (measured as net debt as a percentage of net debt plus equity) was a sound 28% (30/6/2013: 11%).
An interim fully franked dividend of 0.5 cents per share has been declared by Directors. The record date is 24 February 2014 and the payment date
is 3 March 2014.

The Group has completed the acquisition for $1.4m of long term leasehold land and an existing modern medical device factory with clean rooms in Malaysia. ITL's existing manufacturing facilities in Malaysia are significantly space constrained and relocation to this new facility will provide a long term solution for ITL's expansion plans for its Innovative Products Group. It is now planned to expand the production area and warehouse space of this newly acquired factory. Relocation from the existing property, which will be sold, is planned for later this calendar year.
The recent strength of the US dollar against the Australian dollar will, if sustained, enhance revenue growth in Australian dollar terms for the Innovative Products Group. In addition, entry in to new geographic markets outside the U.S. and new product development will generate future growth.
Healthcare Australia's new growth opportunities have started to come on stream. As a recently approved supplier of custom sterile packs to NSW public hospitals, ITL has commenced participating in specific NSW public hospital contract tenders as they progressively arise. In addition, Healthcare Australia, as sole supplier of intravenous cannula insertion packs for W.A. public hospitals, has now received some initial trial orders.
The 2013/14 financial year will be an investment year for ITL with expenditure on the newly acquired Malaysian facility and working capital growth to support new business. This will position the Group for enhanced profit growth going forward which in turn will lead to improved 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.

distributed by