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Newsat Announces FY10 Results: Maiden Positive EBITDA and NPAT

 

16 August 2010

 

The Board of Directors of NewSat Limited is pleased to report the Group’s performance for the year ending 30 June 2010. As previously announced to the market, the strong business turnaround that started in the 2009 financial year has now delivered the Group’s maiden EBITDA and net profit result.

Financial Highlights

• All business KPIs have improved considerably in comparison to FY09;

• MRC (“Monthly Recurring Revenue Charge”) of well over $2 million at year end;

• Revenue of $25 million up over 25% from previous year;

• Positive maiden EBITDA of $1.6 million;

• Positive Net Profit before and after tax;

• Closing cash in bank of $5 million at year end as a result of $2.2 million of operating cashflow for the year; and

• No financial debt at FY10 year end;

 

Operational Highlights

• Growth in target markets of oil, mining, gas and military markets during the financial year;

• Significant volume and value of new contracts won – highlights include Exxon Mobil, the Gorgon Project and several domestic and international government and military agencies; and

• Continued low levels contract churn reflecting quality of product offering and service.

 

Outlook

The Directors are encouraged by the resilience of the underlying NewSat business shown during the GFC and subsequent downturn and are confident that NewSat will continue to build upon its first maiden EBITDA to deliver value for shareholders. The Directors will continue to update the market on business progress during the first quarter of the 2011 financial year.

Adrian Ballintine, CEO, said, “FY10 has been a year of significant progress for NewSat. Our core underlying business has delivered its maiden EBITDA and NPAT and continues to grow, as customers recognise NewSat’s unique proposition encompassing reliable, total coverage satellite communications, outstanding technical expertise and total support.

“From its world class teleports, NewSat is well placed to continue to increase new contracts, both from its existing blue chip customer base and from new customers. Given the operating cost leverage in the business, new business wins will deliver higher margin EBITDA and positive cash flow.