Kordia Delivers Outstanding FY12 Financial Result

FOR IMMEDIATE RELEASE:
Kordia Delivers Outstanding FY12 Financial Result

Auckland, New Zealand:- Kordia has delivered an outstanding full year result to June 2012, with revenue up 35% on FY11 from $295m to $399m, and 30% ahead of budget. Net Profit After Tax (NPAT) has come in at almost 200% of budget (a total of $12.1m), and is an increase of over $26.8m on the after tax loss (due to impairment) recorded for FY11. The FY12 NPAT is an almost $5m increase on the underlying FY11 result of $7.2m, and the Group’s NPAT budget of $6.1m was exceeded even without the contribution of the SLES settlement from Telecom.

All four businesses (Kordia Solutions Australia, Kordia Networks, Kordia Solutions New Zealand and Orcon) have exceeded their EBIT targets, and EBITDA remains strong at $57.7m.

“We have had an exceptional year, and are starting to see the fiscal benefits of diversification, and growth into the telco market,” says Kordia Group CEO Geoff Hunt.

Kordia Solutions Australia, Orcon and Kordia Networks grew revenues by 58%, 27% and 14% respectively.

After three years’ hiatus, dividend payments have recommenced and Group net debt was reduced to $65.9m (gearing of 42%).

“The transformation from ‘broadcast to broadband’ was designed to establish new future growth paths for Kordia with the switch-off of analogue television, and its success is evident as 60% of current revenue is in services which were non- existent five years ago,” says Hunt.

Kordia Networks has run a successful marketing campaign which has achieved 72% prompted awareness from the target audience. Strong growth has continued for OnKor, the wide area network product and associated services. Broadcast has performed ahead of expectations with solid demand for digital TV transmission services.

There continues to be steady customer base diversification for Kordia Solutions New Zealand as well as routinely undertaking assignments in difficult locations in Papua New Guinea, Fiji and the Solomon Islands.

“Orcon has had a good year, showing strong growth,” says Hunt. “The Genius product achieved the full year sales budget in the first two months.” Orcon was also party to a settlement between Telecom and the Commerce Commission in 2011.

Kordia Solutions Australia achieved dramatic revenue growth of 58%. Strong business development efforts have culminated in new business in the telco and mining sectors, and growth is also attributed to customers shifting more business to Kordia due to its record of delivering complex network design and build projects on time and within budget.

The Board is very pleased with this year’s result. “Kordia Group has exceeded targets stated in the SCI and total revenue has grown by 35% in the year to 30 June. This is an outstanding result which has exceeded our EBIT budget by 52%, and delivered strong cashflows,” says Chairman David Clarke. “We look forward to delivering more of the same.”

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About Kordia
Kordia owns an extensive telecommunications network in New Zealand and is the major provider of television and radio broadcast facilities. Kordia provides tailored network and technology solutions to enable customers to succeed.

In Australia, Kordia provides design, build and maintenance services to the broadcast and mobile telecommunications sectors as well as engineering services throughout the region.

The name Kordia comes from the Latin ‘accordia’ meaning harmony – bringing people and technology together as one.

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