By PIPE Networks Press Release
PIPE Networks Limited (ASX: PWK) today announced a 46% increase inÂ consolidated profit after tax for the year ended 30 June 2009 amounting $10.5Â million*. This result includes the combined results of subsidiaries including costsÂ associated with construction of an undersea submarine fibre optic cable from SydneyÂ to Guam.
Key financial highlights include:
- Revenue up 46% to $50.4M
- EBITDA up 43% to $18.6M
- NPAT up 46% to $10.5M
- Basic EPS up 26% to 19.89 cents per share
- Full franked dividend of 8.0 cents per share, up on FY08 by 1.0 cent
- Net operating cash flow up 40% to $24.3M
Mr Bevan Slattery, Group CEO of PIPE Networks said “this strong result is testamentÂ to PIPE's sound business model underpinned by growing demand, long term annuityÂ contracts, our investment in high growth assets and continued focus on customerÂ service. This growth was achieved despite the recent economic downturn”.
“Since its inception, backed by customer contracts, the company has invested heavilyÂ in building its domestic fibre optic network which is now over 1,300km in length. TheÂ network has been designed to meet the highest standards and provide PIPE servicesÂ to as many strategic IT infrastructure locations as possible. Our key focus for FY10Â and beyond is to provide on-net services to internet service providers (ISPs),Â corporate and government customers and reap the benefit from our existing robustÂ networks”, Mr Slattery said.
“Whilst the company undertook some large capital investment programs over the pastÂ five years, shareholder returns have been our number one priority. Our balanceÂ sheet is stronger than ever supported by solid growth in our EPS to 19.9 cents (26%Â year on year growth) and NTA backing per security, which improved to 165.9 centsÂ per share in FY09 (18% year on year growth)”, he said.
Today PIPE International (Australia) Pty Ltd (100% owned subsidiary of PIPEÂ Networks Ltd) also announced the ‘first light' transmitted on PPC-1, a major milestoneÂ in the development of the Company's submarine cable system linking Sydney withÂ Guam, with onwards connectivity to the US and Japan. The PPC-1 cable isÂ scheduled to be launched on the 8th of October 2009 and will be the catalyst for aÂ major positive change required in the competitive landscape in the Australian marketÂ for international transmission.
“Residual external funding requirements have been significantly reduced via theÂ alignment of billing milestones with customer payments and strong cash generationÂ from domestic operations. The Board will continue to consider the mix of fundingÂ sources in upcoming months so that we can deliver the optimum value for money toÂ our shareholders”, said Mr Slattery.