The ASX-listed company saw revenue for the first-half year to 31 December down 5% from $88.6 million in the previous year to $84.4 million, with the decline in Australian revenue attributed to losing a contract with Main Roads WA.
In contrast to its decline in Australian revenue, Empired reports that New Zealand revenues for the half were up 20% with strong contract wins and pipeline into H2.
Empired (ASX: EPD) also reports that net profit after tax for the half year was up from $1.9m pcp to $2 million for the half year.
Despite the current decline in revenues, Empired says Australian revenue will strengthen into H2 FY20 with $5m pa of new managed services contract wins announced in November 2019, combined with improving East Coast pipeline
Empired Managing Director and CEO, Russell Baskerville said “We are very pleased with our strategic progress on reducing overhead costs, capital expenditure, net debt and significantly improving our cash flow.”
“Whilst revenue is modestly down compared with the prior corresponding period, this is in-line with our expectations and during the half we renewed a material contract with Rio Tinto and secured $5m per annum in managed services contracts that will contribute to revenue in the second half and beyond.”
“We were also pleased with the exceptional growth in New Zealand up 20%.”
Baskerville said the Empired board and management together “are excited by our current prospects and confident in our forward outlook”.
Here's Empired results for the half year and outlook for FY20:
FY20 First Half Results
• Revenue of $84m, down 5% pcp
• EBITDA of $8.4m (in line with guidance), down 22% pcp
• NPAT of $2m, up from $1.9m pcp
• Operating cash flow of $11m, up from $3.6m pcp
• CAPEX of $2.7m, reduced from $5.6m pcp
• Net Debt $10.1m, reduced from $14.3m at 30 June 19
FY20 Full Year Outlook
• Forecast material increase in NPAT & EPS
• Expect H2 EBITDA to be higher than H1
• Operating cash flow to EBITDA to be closely aligned
• CAPEX on track to be down by approximately $5m YoY
• Revenue expected to be similar to FY19 with Australia down and New Zealand up
• Company advises that it is in negotiations on a number of material contracts. If successful, these contracts will underpin significant revenue growth momentum into FY21