This morning IT services business DWS Limited (ASX: DWS) released its results for the financial year ending June 30, 2019. Below is a summary of the results with comparisons to the prior year.
- Operating revenue of $163.5m
- Reported EBITDA of $21.9m
- Underlying EBITDA $26.4 million, +15.4%
- NPAT of $10.3m, -35.3% (adjusted NPAT $16.7m)
- Earnings per share of 7.8c (adjusted EPS 12.3c)
- Final fully franked divided 4cps, total FY19 dividends 8cps
- Bank debt of $42m and gross cash of $8.9m
- Acquired Canberra-based "Projects Assured' business over FY for $43m
DWS provides IT consulting services across the finance, government, retail, healthcare, utilities and transport sectors among others.
Over the financial year it also completed the $43 million acquisition of 'Projects Assured" that largely provides IT consulting services to federal government in Canberra with DWS logging $5.7 million in related acquisition costs over the deal.
It reports that if you back these costs out then "adjusted" net profit of $16.8 million is actually marginally up on the prior year. Adjusted EPS also come in at a much healthier 12.3cps.
Looking ahead it declined to provide specific guidance other to suggest it continues to expect its new acquisition to perform well with other targets around productivity, cost management, and margins also important.
The stock changes hands for $1.16 on 9.4x "adjusted earnings" with a 6.9% fully franked dividend yield.
