Sydney, Feb 22, 2006 AEST (ABN Newswire) - MYOB Limited (ASX: MYO) today announced its financial results for the full year ended 31 December 2005.
INVESTING FOR FURTHER GROWTH
- Revenue from continuing operations up 39%
- Operating EBITDA up 41% to $61m at a margin of over 37%
- Earnings per share up 109% to 4.2 cents
- Strong balance sheet, with cash of $44 million and capacity for significant debt
- Fully franked dividend of 2.75 cents declared (up 22%) together with a further fully franked special dividend of 1.25 cents per share
- On-market buyback of up to 5% of the shares on issue
The company's revenue from continuing operations of $161 million for the year ended 31 December 2005 was up by 39% compared to the year ended 31 December 2004. Total revenue (including revenue from discontinued operations) was $166 million.
MYOB's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 41% to $61 million, up from $43 million in the prior year. MYOB achieved an EBITDA margin in 2005 of just over 37%, up slightly on the prior year. MYOB generated a 98% increase in earnings before interest and tax (EBIT) to $25 million. Importantly, earnings per share was up 109% to 4.2 cents.
In releasing the results, Craig Winkler, MYOB's Chief Executive Officer said, "I'm very pleased to report such positive results at the close of our first full year post merger with Solution 6. We've worked to consolidate our position as a significantly larger company around the world, and have put in place the fundamentals for strong growth in revenue and profitability in the medium-term. We have a clear vision for the future and will continue to invest for the long-term.
"Our capital position is excellent, with cash on hand of $44m and access to significant debt capacity to fund appropriate acquisitions. Importantly, we generate great cash flow from our existing businesses, which more than fund our organic growth options. As a result, we have today announced an on-market buyback of up to 5% of the issued capital of the company together with a special fully franked dividend, as we continue to manage our shareholders' capital carefully."
The Directors have provided for a final dividend of 2.75 cents per share fully franked and an additional fully franked special dividend of 1.25 cents per share. The 4.00 cents in dividends will be paid on 21 April 2006 to all shareholders on the register at the books closing date of 3 April 2006. The Directors have suspended the Company's Dividend Reinvestment Plan.
----------------------------------------------------------------------12 Months to 31 December 2004($m) 2005($m)----------------------------------------------------------------------Revenue from continuing operations 116.0 161.2----------------------------------------------------------------------Operating EBITDA 42.9 60.6----------------------------------------------------------------------Operating EBIT 19.3 27.9----------------------------------------------------------------------Non operating revenues and specific costs (6.8) (3.1)----------------------------------------------------------------------Net interest & share of associate loss 1.0 0.9----------------------------------------------------------------------Profit before tax 13.5 25.7----------------------------------------------------------------------Taxation expense (6.4) (8.0)----------------------------------------------------------------------Profit after tax from continuing operations 7.1 17.7----------------------------------------------------------------------Earnings per share (cents) 2.01 4.20----------------------------------------------------------------------Fully franked dividends (declared) /share (cents) 2.25 4.00----------------------------------------------------------------------
From its 2005 financial year onwards MYOB has adopted International Financial Reporting Standards (IFRS). All comparative historical figures have been restated accordingly.
CONCLUSION
MYOB expects around 13% operating revenue growth for the year ending 31 December 2006. During 2006 MYOB expects to incur an EBITDA loss of approximately A$4 million in China as part of its investment in the marketing and development of MYOB China. As a result, the company expects a group EBITDA margin of circa 35% for the current year.
Summing up, Craig Winkler said "Looking ahead to 2006 and beyond, it's an incredibly exciting time for MYOB. While our core products continue to win awards around the world, we have well and truly taken our range of business solutions to another level. We remain focused on solving the administrative burden for businesses of all kinds, but today we do that with an expanded suite of options that do a great deal more than keep track of the numbers. That's always been the vision, and it's rewarding to see another year where the results attest to that direction."
A copy of the Company's official results release in English and financial statements for the year ending 31 December 2005, as lodged with the Australian Stock Exchange, is available at http://myob.com/au/investors/announcements
About Myob Group Ltd
MYOB Group Ltd (ASX:MYO) is a leading provider of online business management solutions. It makes business life easier for approximately 1.2 million businesses and accountants across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across three core segments – Clients and Partners (business solutions to SMEs and Advisers); Enterprise Solutions (larger businesses) and Payment Solutions. It provides ongoing support through client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly through its Connected Practice Strategy and through the development of the MYOB Platform. For more information, follow @MYOB on Twitter or visit https://investors.myob.com.au/Investors
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