Photo by: Duane Daws
JSE-listed industrial energy and supplies group Austro increased its adjusted headline earnings for the year ended August 31 by 67% to 8.7c a share, the company announced on Wednesday.
Austro’s revenue for the year increased by 16% to R585-million, with group-wide gross margins having remained stable.
The company’s earnings before interest, taxes, depreciation and amortisation (Ebitda) also increased by 142% to R32.4-million, with Austro stating that its trading remained largely unaffected by the National Union of Metalworkers of South Africa strike in July.
“This was as a result of building relationships and constant communication with our staff as well as contingency planning ahead of the work stoppages,” the company explained.
Austro stated that despite a subdued macroeconomic environment, each of its group companies had delivered strong performances during the period.
The group’s Private Power Sales business increased its revenue by 18% to R354.3-million and its Ebitda by 23% to R26.9-million, while the Temporary Power segment’s revenue was up 16% to R35.5-million and its Ebitda by 14% to R15.2-million.
Meanwhile, the Wood segment increased its revenue by 15% to R195.1-million and adjusted Ebitda had increased to R24.8-million from R3.2-million previously, mainly owing to the additional gross profit contribution from higher revenues and gross margins, and a substantial decrease in operating expenses.
Meanwhile, the group’s operating expenses increased 3% compared with the prior year.
Austro also improved its financial and liquidity position over the year with cash balances as at August 31, 2014, increasing to R73.6 million, from R40.3-million at the end of the prior financial year.
External borrowings remained low at R3.6-million, resulting in a net cash position of R70-million.
In line with its policy to reinvest for growth, Austro declared no dividend for the year.