Programmed Maintenance Services Limited Robust Growth with debt reduction
Robust Growth with debt reduction: Programmed Maintenance Services Limited (ASX: PRG) witnessed a stock price surge of 2% on May 24, 2017 with the release of FY17 results that entailed robust financials across segments boosted by improved diversity across all measures. The group reported an after-tax profit of $41.3 million before amortisation and non-trading items for the year to 31 March 2017 against FY16 figure of $38.8 million. After-tax profit was $12.3 million (FY16: after-tax loss of $98.0 million) post amortisation and non-trading items. Further, there was a 19.7% surge in earnings before interest, tax, depreciation, amortisation (EBITDA) and non-trading items to $96.5 million. Group revenue was up 21.8% to $2,691.4 million at the back of the full year contribution by Skilled which was acquired in October 2015. On the other hand, gross operating cash flow slipped by 6% to $85.8 million while net operating cash flow was $61.5 million, 5% higher than FY16. The group’s efforts on capital management helped reduce the net debt to $200 million at 31 March 2017, compared with $239 million at 31 March 2016. Despite difficult trading conditions, integration of Skilled has been completed on track generating strong cash flow. Even Maintenance division experienced an impact from the Marine business due to the lower oil and gas prices and completion of major offshore construction contracts, growth in revenue and earnings by the non-marine businesses helped balance the scenario. PRG has declared a fully franked dividend of 3.5 cps for the period of six months ending 31 March 2017, and the same will be paid in July 2017.
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