Spotless Group Holdings Limited announced its results on 25 February for the six months ending 31 December 2014 and confirmed the company is ‘on track to deliver on its FY15 prospectus forecasts’.
As stated in the announcement, ‘Spotless reported statutory sales revenue of $1,346.3 million, up 4.7% on the previous corresponding period (1H14: $1,285.6) and pro forma sales revenue of $1,302.5 million, demonstrating growth of 4.5%’ on the previous half.
Statutory earnings before interest, tax depreciation and amortisation (EBITDA) of $137.1 million represented an increase of 36% from $100.8 million – or 13.9% on a pro forma basis. ‘Strong EBITDA growth during the half reflects the continued impact of cost savings and the sustainability of the company’s efficiency programs,’ noted the announcement.
‘Statutory net profit after tax (NPAT) was $60.2 million compared to a loss of $3.8 million in the previous half due to one-off restructuring and IPO costs. However, pro forma NPAT rose 23.6% half on half.’
Spotless’ chairman, Margaret Jackson, said that the company’s interim results were the reflection of a stable and diversified business with well-managed operations and the ability to self-fund growth.
“The company completed several bolt-on acquisitions during the half, all of which were consistent with Spotless’ growth framework and entirely self-funded. These businesses deepen the skill base of Spotless and broaden the company’s service offering to existing and new clients.
“The Spotless team has continued to build on the business’ strong base which has been reset over the past two and a half years. With an unrelenting focus on costs, efficiencies and financial performance, Spotless is now achieving margins in line with our global competitors,” she revealed.
Spotless’ chief executive officer and managing director, Bruce Dixon, reiterated Jackson’s sentiment: “Our first half results, together with the company’s seasonal weighting of earnings towards the second half, demonstrate that we are on track to deliver on our full year prospectus forecasts,” he remarked. “We continue to pursue more efficient and effective ways to deliver quality services to our clients, while ensuring our margins are globally competitive.”
Spotless continues to pursue organic growth both through new contracts and through adjacent services. During the half, Spotless was awarded a number of new and renewed contracts including:
• An expanded scope to provide facilities maintenance to SA State Government facilities
• An expanded service offering for the Australian Department of Defence
• A facilities maintenance contract for WA Department of Housing
• A cleaning contract for Virgin Lounges
• A national catering contract with a major foreign airline
• A number of smaller laundries contracts (including St Vincent’s NSW and Eastern Health)