Vector financial results announcement 08
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Vector Limited (VCT) | 9:48 am, Wednesday 27 August 2008 | VCT | 1.950 |
 0.020 |
(+1.04%) |
Vector Limited
Reporting Period: 12 months to 30 June 2008
Previous Reporting Period: 12 months to 30 June 2007
NZ$000s
Revenue from ordinary activities
Reporting Period (continuing activities): 1,182,012
Reporting Period (discontinued activities): 147,255
Reporting Period (total): 1,329,267
Previous Reporting Period (continuing activities): 1,145,783
Previous Reporting Period (discontinued activities): 161,358
Previous Reporting Period (total): 1,307,141
% Change (based on total): +1.7%
Profit/(loss) from ordinary activities
Reporting Period (continuing activities): 141,792
Reporting Period (discontinued activities): 22,635
Reporting Period (total): 164,427
Previous Reporting Period (continuing activities): 196,994
Previous Reporting Period (discontinued activities): 36,311
Previous Reporting Period (total): 233,305
% Change (based on total): -29.5%
Net profit/(loss) attributable to security holders
Reporting Period (continuing activities): 141,792
Reporting Period (discontinued activities): 22,635
Reporting Period (total): 164,427
Previous Reporting Period (continuing activities): 196,994
Previous Reporting Period (discontinued activities): 36,311
Previous Reporting Period (total): 233,305
% Change (based on total): -29.5%
Final Dividend
Reporting Period: Amount per security, 6.7500 cents; Imputed amount per
security, 2.8929 cents
Previous Reporting Period: Amount per security, 6.5000 cents; Imputed amount
per security, 3.2015 cents
Record Date
Reporting Period: 11 September 2008
Previous Reporting Period: 29 August 2007
Dividend Payment Date
Reporting Period: 18 September 2008
Previous Reporting Period: 4 September 2007
Interim Dividend
Reporting Period: Amount per security, 6.5000 cents; Imputed amount per
security, 3.2015 cents
Previous Reporting Period: Amount per security, 6.5000 cents; Imputed amount
per security, 3.2015 cents
Record Date
Reporting Period: 31 March 2008
Previous Reporting Period: 30 March 2007
Dividend Payment Date
Reporting Period: 10 April 2008
Previous Reporting Period: 10 April 2007
Comments
Audited financial statements and supporting information attached.
This report has been prepared in a manner which complies with generally
accepted accounting practice and gives a true and fair view of the matters to
which the report relates and is based on audited financial statements.
Previous reporting period results are also audited.
Approved by resolution of the Board of Directors
Vector result robust
- Revenue $1329.3m, up 1.7%
- EBITDA $640.0m, up 5.7%
- NPBT $231.5m, up 1.3%
- Reported NPAT $164.4m
- Strong focus on driving efficiencies in costs and capital expenditure
- Total dividend for FY08 13.25cps (13 cps previous corresponding
period)
Vector Limited (VCT) announced an annual result today of $164.4 million Net
Profit after Tax for the year ended 30 June 2008, which is at the upper end
of analysts' previous forecasts.
Vector's underlying business performance continued to grow over the last
financial year, with group EBITDA rising by 5.7 % to $640 million, and group
revenue increasing by 1.7 % to $1,329 million.
Net Profit before Tax has risen 1.3 % to $231.5 million.
The 2007 comparative NPAT of $233.3 million is restated under IFRS, and was
inflated by one off tax adjustments as previously disclosed to the market.
"This is a very robust result," said Vector Chairman Michael Stiassny.
"It is due to a concerted effort over the past year to streamline the
business by removing inefficiencies, cutting costs and concentrating on those
operations that meet our criteria for growth."
Shareholders will be paid a fully imputed dividend of 13.25 cents per share,
compared with the 13 cents per share dividend for the previous period.
In addition, Vector's board has announced this morning that its previously
disclosed buy-back of up to 25 million ordinary shares will begin on 1
September 2008 running to 27 August 2009.
"Our core businesses have made increased contributions, increased revenue,
and have reduced costs," said Vector Group Chief Executive Officer Simon
Mackenzie.
Growth in electricity earnings, increased gas transmission volumes, firmer
LPG prices and continued growth in technology revenue over the last year all
contributed to the result.
Total revenue increased from $1,307 million to $1,329 million, driven
primarily by increases in electricity volumes and connections in Auckland, as
well as a CPI price increase.
Vector's cost efficiency programme during the year contributed to a reduction
on 2007 in operating expenditure of $15 million prior to one off redundancy
costs.
This was also assisted by a significant reduction in gas purchases and
associated costs of sales of $15.9 million.
Operating cash-flows decreased by 7.4 % to $331 million, driven mainly by
increased net interest paid, increased level of cash tax payments, and a
reduction in creditors.
Vector has made significant progress in its four areas of key focus,
Operational Excellence, Operational and Capital Expenditure Efficiency,
Regulatory and Customer outcomes and Disciplined Growth. In particular
Vector:
- agreed to divest the Wellington electricity network after unsolicited
approaches and a strategic review concluded it's static growth and lack of
network overlap did not fit with Vector's strategy
- retained its BBB+ investment grade rating from Standard and Poor's
- standardised and simplified its field contracting model, with
contractors required to work across electricity, gas and telecommunications
networks, instead of specialising.
- re-organised and further strengthened its executive team
- successfully refinanced in the midst of a global credit crisis
"Vector is now in a much stronger position both financially and operationally
in all of its core businesses to take advantage of future disciplined growth
that may eventuate," said Mr Mackenzie.
Mr Mackenzie said telecommunications remained a key area of focus for Vector,
given the announcement of broadband infrastructure funds.
Vector is strongly placed to deliver this much needed infrastructure, but
would only proceed if its usual commercial criteria and risk profile were
satisfied.
ENDS
Contact:
Philippa White
External Communications Manager
Ph: 09 978 7638
Mobile: 021 579 522
