STW announces “credible” half year report card

STW announces “credible” half year report card

STW’s CEO Michael Connaghan has described today’s financial results for the first half of the year as a “credible and hard fought result”.

B&T Magazine
Posted by B&T Magazine

STW posted an increase in revenue of 7.9% to $176 million, compared to the $163.2 million during the same period in 2012. EBITDA stood at $35.7 million, up 6.9%, while net profit after tax was $19.3 million, was up 7.2%. STW posted an interim dividend of 3.3 cents was per share, while the earnings per share of 4.9 cents was down 2.6%.

Connaghan said the result was achieved in the “new normal” of an extremely sluggish economy, and with a backdrop of political uncertainty and accelerating structural change in the industry.

"Despite these factors, we delivered solid growth in the first half. The momentum across key indicators of our business gives us encouragement that full year guidance of circa 15% NPAT growth and mid-single digit EPS growth remains achievable,” he said.

Connaghan went on to add:

“The diversification that underpins STW’s business model once again enabled a resilient result. The majority of our businesses performed well and to expectation.

“Our first half result would have been even stronger had an expected acquisition been completed earlier than has been the case, and had three mid-sized businesses not underperformed, dragging down the overall result. That deal is now done, the underperformers are back on track and we move in to the second half with confidence.

“There is no escaping though from the reality of really tough trading conditions and recalibration of business models. The growth we achieved in the first half was solid, and we remain committed to delivering the growth in the second half needed to achieve guidance.

“I am encouraged by significant progress and success in key pillars of our business. Our new business success in the first half has been outstanding. Across our portfolio, STW companies have won more than their fair share of the biggest opportunities in the market.

"Simply put, our businesses are competing for the best work, and winning."