Major Change Program on Track and Laying Foundations for Growth

February 25, 2016

SAI Global Limited (ASX: SAI) has announced a statutory net profit after tax attributable to shareholders of $28.7 million, up 46.9% from $19.5 million in the previous corresponding period (pcp). Underlying net profit, excluding significant items, was $29.4 million, an increase of 17.6% over the pcp.

Reduced significant items for the first-half FY16, relating only to incidental costs associated with pursuing acquisition opportunities, has resulted in a closer alignment of statutory and underlying EBITDA and NPAT. Excluding significant items, underlying EBITDA for the first-half increased 12.8% to $66.2 million. “Statutory” EBITDA grew 27.6% to $65.2 million. Revenue grew 8.1% to $290.2 million, reflecting the favourable impact of the weaker Australian dollar.

The directors have declared an interim dividend of 7.5 cents per share fully franked, compared to 7.5 cents, 60% franked in the pcp. The dividend will be paid on 8th April 2016 and the record date is 4th March 2016. 

This is a pleasing result given we are in the midst of a major change program at SAI. We are working to ensure that SAI can respond effectively to customer requirements and market change through the provision of integrated, whole of business solutions enabling our customers to better manage corporate risk, food risk and process risk.

The weakening of the Australian dollar relative to 1H15 has had a favourable impact on these results. However, excluding the impact of currency the results demonstrate that the Company has achieved real growth in both revenue and EBITDA. Importantly, over the half, the Company has also made good progress in implementing the new strategy and in creating a robust platform from which to achieve further growth.

Mr Peter Mullins

Chief Executive Officer, SAI Global

Outlook for FY16

We expect the weaker Australian dollar to remain at current levels through to 30 June 2016 and on this basis guidance for full-year FY16 is as follows:

• Revenue between $580M and $590M 
• Underlying EBITDA in the range $132M to $138M  
• Underlying NPAT in the range $58.0M to $62.0M

SAI will continue to pursue organic growth and strategic and bolt on acquisitions in its target areas.

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