iSOFT full-year net profit climbs 137% to A$ 34.7 million
Corporate Updates

iSOFT full-year net profit climbs 137% to A$ 34.7 million

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iSOFT Group Limited, Australia’s largest listed health information technology company today announced its full-year result for the 12 months ended 30 June 2009. Highlights included the following:

  • Total revenue grew 50% to A$ 540.1 million, meeting the company’s guidance.

  • NPAT climbed 137% to A$ 34.7 million, while underlying NPAT rose 101% to A$ 66 million

  • EBITDA grew a better-than-expected 37% to A$ 132.4 million

  • EBITDA margin of 25%

  • Net operating cash flow of A$ 64.3 million

  • Net debt reduced by A$ 129 million; gearing of 21%

  • Unfranked dividend of 1 cent

Executive Chairman & CEO, Gary Cohen, said, ‘We have met or exceeded guidance on our key measures and reinstated a dividend. We have grown revenues more than 15% year on year on a like-for-like basis. We have significantly strengthened our balance sheet. iSOFT is in sound financial shape, and is well-placed at the forefront of a growing and resilient industry at a time when many companies are struggling’. In the first full fiscal year of integration, overall financial results were strong. Revenue grew 50% to A$ 540.1 million as iSOFT strengthened its global footprint with significant contracts in core markets such as the U.K, the Netherlands, Germany, Spain and Australia, and entered new markets in Latin America, Italy and Africa. Revenue met guidance, even as the AUD/GBP exchange rate fell from the first half to the second half. More than 50% of the Group’s revenues are in GBP. EBITDA of A$ 132.4 million and EBITDA margin of 25% were above the guidance provided to the market on lower than anticipated costs. Net profit after tax gained 137% to A$ 34.7 million, while underlying net profit after tax rose 101% to A$ 66 million. At constant currencies, revenue grew by 42%, EBITDA rose by 29% and NPAT by 131%. Operating cash flow was A$ 64.3 million, equivalent to 49% of EBITDA for the full year and 118% of EBITDA in the second half. Earnings per share more than doubled year on year, increasing to 4.3 cents in FY09 from 2.08 cents a year earlier. iSOFT announced a 1 cent unfranked dividend. The record date is 22 September and it is payable on 6 October. The dividend reinvestment plan is activated and the discount will be notified shortly. iSOFT expects sales growth of 10%, almost five times the forecast industry average (Gartner Forecast), in FY10, with margins at FY09 levels. Interest expense is forecast to be substantially lower (A$ 10- A$ 12 million), boosting NPAT in FY10. Operating cash flows are expected to trend across the halves in a similar way to FY09, and revenue and EBITDA is expected to be materially higher in the second half than in the first.

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