What: Leading provider of outsourced facility services Spotless Group Holdings Ltd (ASX: SPO) has jumped at the open on Tuesday after releasing full year results which have exceeded its prospectus forecast at the sales, earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax (NPAT) lines.
So What: It's good news for shareholders who bought into the initial public offering (IPO) back in May 2014. Since the float the share price has rallied to a high of $2.52, but has since slipped back to close trade on Monday at $1.75 which was around 10% above the IPO price of $1.60. The jump in the share price today to $1.92 has added another 10% to those gains.
Here are the key takeaways from today's release:
- Pro forma revenue of $2.8 billion (6.6% above prospectus)
- Pro forma EBITDA of $316.4 million (5% above prospectus)
- Pro forma EBIT of $238 million (4.9% above prospectus)
- Adjusted pro forma NPAT of $150.2 million (5.9% above prospectus)
- Net debt up 7% to $563.5 million
Now What: Shareholders can look forward to receiving a 5.5 cents per share unfranked final dividend on September 25, the stock will trade ex-dividend on September 2.
Looking forward and management noted that Spotless has successfully renewed business worth over $950 million per annum plus won new contracts valued at over $350 million per annum.
Guidance provided by management stated that: "Subject to economic conditions, we expect the FY16 result to materially exceed the FY15 results."
According to data provided by Morningstar, analysts currently have 16 cps in earnings per share pencilled in for the current financial year. Today's result and guidance could see that consensus figure move higher.
