ASX Announcement
Key highlights
- Strategic initiatives being executed to drive growth:
- Construction of the MV Ocean Shearer nearing completion with commencement of operations expected by the end of April
- Strong progress on the Wellao JV in China – supply agreement signed and facility design completed
- MV Ocean Outback and Swagman expected to become fully operational again during March 2016
- Robust financial position with conservative gearing of 37% (net debt / net debt + equity)
- Continued strength in industry backdrop:
- Strong metrics from Asian live export markets
- Upcoming religious festival period in Q416 will further support demand
- Low fuel price environment
Wellard Ltd (ASX:WLD) has today reported its financial results for the six months ended 31 December 2015. The results are Wellard’s first since successfully completing its IPO in December 2015. The statutory results include significant one-off items associated with the IPO and restructuring from a private to public company. Wellard has therefore also presented the six months to 31 December 2015 on a pro forma basis to support comparison to the prospectus financials and ensure consistency moving forward.
On a pro forma basis for the six months ended 31 December 2015, Wellard reported revenue of $275.5 million, EBITDA of $26.9 million and NPAT of $13.5 million. The statutory net loss after tax for the period, after taking into account the restructuring and IPO related costs, was $23.9 million. A reconciliation of the statutory result to the pro forma result is included in the investor presentation separately lodged with ASX today.
Wellard expects the forecast pro-forma FY 2016 NPAT* to be $42.5m, being an 8.4% reduction to the Prospectus forecast of $46.4m, after factoring in the combined impact of:
- a delay in commissioning of the MV Ocean Shearer
- repair period and associated costs for the MV Ocean Swagman and MV Ocean Outback
- FX impact on Interest and Depreciation due to lower AUD
Wellard has a conservative gearing ratio of 37% with cash and undrawn banking facilities of $76.5 million.
“We have had a landmark half successfully raising almost $300 million via our IPO and transitioning from a private company structure through to an ASX listed public company,” Wellard Managing Director and CEO Mauro Balzarini said.
“Our pro-forma numbers provide a clearer picture of operating performance as our statutory result was skewed by the one-off corporate restructuring costs associated with the IPO process. We look forward to normalising our fleet in March and bringing additional shipping capacity, the MV Ocean Shearer, into service in April. It will be the fifth custom-designed and built vessel in Wellard’s fleet.
“Wellard typically experiences a seasonal bias in its earnings towards financial year Q4 with an increase in livestock export volumes driven by Asian religious festival periods. We expect that to be the case again this year so the MV Ocean Shearer’s addition to our fleet will be perfectly timed”.
*Pro forma NPAT is Net Profit After Tax, and excludes all one-off IPO related costs totalling A$33.8m and normalisation of Interest expenses of A$8.2m to reflect post IPO capital structure and tax expense increase of A$4.5m to reflect appropriate company tax rate after removal of one-off IPO related costs.
Please click here to view the full ASX Announcement and Appendix 4D.
For further information:
Investors
Managing Director, Mauro Balzarini
Greg Wheeler, Finance Director
Phone: + 61 8 9432 2800
Media
Cameron Morse, FTI Consulting
Phone: + 61 8 9485 8888
Mobile: +61 (0) 433 886 871