Neptune Marine Services Limited has delivered a net loss after tax from continuing operations of $33.8 million (including goodwill impairment of $35.0 million) and EBITDA of $6.1 million for the year ended 30 June 2012.
Neptune has reported a positive cashflow from operations in FY2012 of $4.5 million, a considerable improvement on the negative cashflow from operations of $13.7 million in FY2011.
Revenue remained stable in the year at $116.3 million (FY2011: $117.9 million), in line with previous guidance. This was an encouraging result given both the competitive markets in which Neptune operates and some legacy challenges experienced by the Company with clients during the year as it concluded a comprehensive restructure.
As at 30 June 2012, the Company’s cash position was $7.8 million following an improvement during the second half FY2012. Neptune also had zero term debt and a strong net working capital position of $29.5 million, ahead of guidance provided in July.
As flagged to the market in July, Neptune carried out a full assessment of the goodwill of its individual businesses. Following this review, the Company has booked a goodwill impairment of $35 million to better reflect the performance and underlying value of some businesses. As a result, Neptune reported a statutory net loss after tax of $39.9million.
During the year, Neptune sold its unprofitable Australian fabrication business and US diving business.
These discontinued operations reported an operating net loss after tax of $0.2 million together with a $5.9 million loss relating to recycling Foreign Currency Translation Reserve amounts back through the Income Statement.
Neptune Chief Executive Officer Robin King said the results reflected a year of transition for Neptune, in which its continuing operations returned to profit, non‐core assets and loss‐making businesses were sold, and the Company started rebuilding relationships with key clients.
“While revenue has stayed broadly in line with last year – which is pleasing given the competitive market conditions – our restructure initiatives have resulted in a significant reduction in corporate and operating expenses, helping deliver a return to profit for our continuing operations,” Mr King said.
“Pleasingly, our service offering expanded in the year as we opened a service facility in Dampier, Western Australia, developed a base in Darwin, and opened a facility in Melbourne.
“We also started correcting weaknesses in our operating and reporting systems, with further improvements to be made in the current period.”
Outlook
Neptune continues to review our cost structures to maximise efficiencies and maintain market competitiveness but does expect pressure on margins experienced in FY2012 to remain in the current period. However, Neptune will continue to pursue its strategy of organic growth through expanding its services into established oil and gas regions across Australia, securing strategic partnerships and further improving awareness of Neptune’s integrated service offering as key to improving returns to shareholders.
Mr King said Neptune’s ability to win a major, long‐term contract with Bhagwan Marine to provide services to Apache Energy over a five year period was evidence of the Company’s ability to deliver on this strategy.
“We will continue to provide responsive and quality services to our clients, and pursue growth opportunities with key partners as we strive to improve Neptune’s performance in the current year,” Mr King said.
“Our expansion into key oil and gas regions across Australia such as potentially Gladstone and the Bass Strait will provide Neptune with a strong geographical footprint in the region and provide additional opportunities.”
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Press Release, August 31, 2012