Engineering solutions provider Legend Corporation (ASX: LGD) has announced a 15% increase in group revenue, a 60% increase in net profit after tax (NPAT) and a 19% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) for the year ended 30 June 2018, compared to the previous corresponding period.
Group revenue for the period reached A$114.9 million compared to A$100.2m in the period to 30 June 2017, with A$8.7m attributed to the March acquisition of Australian-based specialist test and measurement and consulting services company Celemetrix Group.
Legend reported a NPAT of A$6m and EBITDA of A$12.4m, compared to A$3.7m and A$10.4m respectively for the previous corresponding period.
The company also announced a final, fully-franked dividend of $0.75 cents per share on top of an interim dividend of $0.70cps paid in April, taking the full year’s dividend to $1.45cps and payable to shareholders in November.
EPI business drives results
While all segments of the group reported good results, Legend cited its Electrical, Power & Infrastructure (EPI) business as the “outstanding performer” for the period, driven by continued nationwide spending on infrastructure and commercial projects and the resumption of capital works by power utilities.
EPI revenue was up 21% to A$77.2m compared to A$63.6m for the previous period. Revenues and gross profit from pre-existing operations (excluding Celemetrix) increased 8%, with the remainder of the increase coming from the Celemetrix acquisition.
Legend’s Innovative Electrical Solutions business increased by 5% to $8.8m for the current period (compared to the previous A$8.4m), driven by increased defence-related contracts.
The company’s Gas & Plumbing business also continued to grow with revenues up 3% to A$31m (compared to the previous A$30.1m) due to the introduction of new products during the period.
Legend was established 30 years ago as a supplier of specialist tools, consumables and componentry to customers in the power, mining, information technology, telecommunications, defence and medical industries.
The company has offices throughout Australia, New Zealand and the Pacific region and exports to China and the United States.
In December, Legend announced it had reached an acquisition agreement with fibre telecommunications test equipment and calibration business Celemetrix, which services customers in the telco, defence, aerospace, data and electrical markets.
Finalised in March, the Celemetrix acquisition is part of Legend’s strategy to expand its involvement in the electrical, power and industrial markets through a range of equipment sales and asset management services which complement its existing product range.
Legend said the initial payment on completion of A$10.3m was adjusted down by A$2m at 30 June 2018 as earnings targets were not met.
The share purchase agreement also provided for a maximum final deferred payment of A$3.125m subject to the achievement of EBIT targets for the two financial years ending 30 June 2019 and 2020.
At midday, shares in Legend Corporation were trading 12.50% higher at $0.27.