BRIEFS
Carsales.com.au has grown full-year profit by 17 per cent to $83.5million in the year to June 30, and is focused on driving its business into overseas markets. The number of cars advertised was higher than in the previous year, and revenue grew by 17 per cent. Carsales recently bought into two offshore counterparts - Brazil's WebMotors and iCar Asia, which operates auto sale sites across Thailand, Malaysia and Indonesia.
Skilled profit lift
The way to continue working as a contractor to big miners is to take a 25 to 30 per cent cut on your profit margins, according to Skilled Group boss Mick McMahon. Speaking after his company reported an improved $56.2 million net profit for the 2013 financial year, Mr McMahon said haircuts on contracts had become commonplace across the mining sector as companies looked to reduce costs where possible. As one of the larger contractors, Mr McMahon said, Skilled was trying to take a long-term view and be one of the companies left standing when the current mining sector crunch is over.
Back in black
Australia's biggest food company, Goodman Fielder, has returned to profit after a restructure that left shareholders without a dividend last year. Goodman reported a net profit of $102.5 million in the year to June 30, compared with a $146.9 million loss a year earlier. It will also resume paying dividends at 3¢ a share, unfranked. Chief executive Chris Delaney said the strategy to cut costs and reduce debt had helped Goodman Fielder to achieve the turnaround.
Primary return
Medical centres, pathology and imaging services provider Primary Health Care has boosted its payout to shareholders substantially, after lifting its annual profit by 28.7 per cent. Primary on Wednesday booked a net profit of $150.1 million for the 2013 financial year, up from $116.6 million in the previous year. Primary will pay shareholders a fully franked final dividend of 11¢ a share, up from 6¢ a share in the prior corresponding period.
Frequently Asked Questions about this Article…
Carsales.com.au reported a 17% increase in full-year profit to $83.5 million in the year to June 30, and revenue also grew by 17% over the same period.
The number of cars advertised on Carsales was higher than the previous year, helping revenue growth. The company is focused on overseas expansion and recently bought into Brazil's WebMotors and iCar Asia, which operates auto-sale sites across Thailand, Malaysia and Indonesia.
Skilled Group reported an improved net profit of $56.2 million for the 2013 financial year. CEO Mick McMahon said haircuts on contracts have become commonplace in the mining sector, with contractors often needing to accept a 25–30% cut to profit margins to keep working for large miners.
Skilled says it is taking a long-term view and aiming to be one of the companies left standing after the current mining-sector crunch, accepting short-term margin pressure on contracts as part of that strategy.
Goodman Fielder returned to profit, reporting a net profit of $102.5 million for the year to June 30 after a $146.9 million loss the prior year. It will resume paying dividends at 3¢ a share, which will be unfranked.
Goodman Fielder said a restructure focused on cutting costs and reducing debt helped deliver the turnaround from a loss to a $102.5 million profit and allowed the company to resume dividend payments.
Primary Health Care lifted annual net profit by 28.7% to $150.1 million for the 2013 financial year (up from $116.6 million). It boosted its final payout to shareholders to a fully franked 11¢ a share, up from 6¢ a share in the prior corresponding period.
The article highlights different corporate situations investors may watch: Carsales showing revenue and profit growth with international expansion; Skilled facing sector pressure but pursuing a long-term strategy; Goodman Fielder returning to profit and resuming an unfranked dividend after cost and debt reduction; and Primary Health Care increasing both profit and a fully franked dividend. These are signals to monitor earnings, dividend policy, and industry-specific risks when evaluating investments.
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