Despite facing a challenging 2016, Australian facility service provider Spotless Group delivered ‘a steady result for shareholders in line with guidance provided in December 2015’.
The company recently released its annual report for the 2016 financial year, which revealed that Spotless’ sales revenue had increased by 10.6 per cent from last year to $3.2 billion.
“We delivered statutory EBITDA of $312 million, down 1.5 per cent, while statutory NPAT was $122 million, down 14.4 per cent,” shared the company’s chairman Margaret Jackson.
“Our underlying EBITDA was $326 million, up 6 per cent, and underlying NPAT was $131 million, down 4 per cent on last year. The one-off items reflected in the result have been resolved and Spotless remains in a strong financial position.”
Ms Jackson also added that the directors had declared a final dividend of 5.0 cents per share, bringing total dividends to 8.5 cents per share.
Spotless CEO Martin Sheppard said that the company is “confident in the strength of the underlying business and opportunities for growth”.
“We completed a strategy reset focused on accelerating organic growth through long, expandable multi-service contracts that leverage our scale and breadth of services,” stated Mr Sheppard.
“We expanded our capabilities to include security, mechanical and electrical services, as well as water, power, lighting and other utility services. We also extended our laundries footprint.
“Spotless proudly self-delivers 70 per cent of services, providing a competitive advantage when it comes to quality, safety, service consistency, oversight and managing risk.”
Looking to the future, Mr Sheppard said that the company is expected to “deliver steady returns through improved performance of the laundries business, and also “stands to benefit from revenue growth in existing contracts”.