Carsales revs up
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 grew full-year profit by 17% to $83.5 million in the year to June 30, and reported revenue growth of 17%. The company also had a higher number of cars advertised compared with the previous year.
Carsales is focused on driving its business into overseas markets and has recently bought stakes in 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 contractors are commonly taking 25–30% cuts on profit margins as mining companies seek to reduce costs, and Skilled is taking a long-term view to remain one of the survivors after the mining sector downturn.
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 previous year. Following a restructure that cut costs and reduced debt, the company will resume paying dividends at 3¢ a share, unfranked.
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 will pay shareholders a fully franked final dividend of 11¢ a share, up from 6¢ in the prior corresponding period.
Goodman Fielder will resume dividends at 3¢ a share (unfranked) after not paying last year, and Primary Health Care increased its fully franked final dividend to 11¢ a share (from 6¢). The article does not report dividend changes for Carsales or Skilled.
Key themes include corporate turnarounds and cost-cutting delivering resumed or higher dividends (Goodman Fielder and Primary Health Care), overseas expansion as a growth strategy (Carsales), and margin pressure for contractors serving the mining sector (Skilled), all of which can affect earnings and dividend prospects.
Most results are reported for the year to June 30. Skilled Group and Primary Health Care results are specifically cited as for the 2013 financial year; Carsales' full-year numbers are for the year to June 30, and Goodman Fielder's turnaround is also reported for the year to June 30.
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