Cardno Posts Record Profit, Increases Dividend
Global infrastructure services consultancy Cardno Limited (ASX: CDD), today announced a record net profit after tax of $37.60 million for the year ended 30 June 2010, a 10.1% increase over the 2009 financial year. Basic earnings per share increased to 43.86 cents.
Cardno had strong operating cash flow of $46.75 million in 2010, an increase of 21% over 2009, and had cash of $56.28 million at 30 June 2010.
The company's balance sheet remains strong with low net debt. In August, the company completed a successful Rights issue raising $49 million.
The Board has declared a fully franked final dividend of 15 cents per share to be paid on 15 October 2010 to all shareholders registered on 17 September 2010. With the interim dividend of 14 cents per share in March 2010, this will result in a full year dividend of 29 cents, which is also a record for Cardno.
Revenue was $477.24 million, which was slightly down from 2009, with most of this reduction resulting from the strengthening Australian dollar in 2010.
"I am pleased to announce Cardno has delivered another record profit for our shareholders during a period of significant adverse economic conditions. This is the sixth consecutive year of record profit and earnings per share growth since listing in 2004 with total shareholder return in this period of over 400%" said Cardno Chairman, Mr Massey.
"Cardno has performed strongly through the global financial crisis. The company's strategy of diversifying its operations through acquisitions and growth across multiple geographic regions and disciplines has proven successful. The company now employs over 3,700 staff worldwide, operating out of 150 offices."
During the financial year Cardno made four acquisitions. The 615-person Cardno ENTRIX and the 155-person Cardno ERI have increased Cardno's exposure to the highly strategic and growing environmental consulting market, as well as the oil and gas sector in the US and internationally. In Australia, Cardno acquired two specialist businesses: Cardno ITC a 100-person Australia wide electrical, mechanical and specialist engineering group providing services to the building sector; and Cardno AUS a utility detection and mapping services business based in Victoria.
Managing Director, Mr Andrew Buckley noted that the company's second half performance was stronger than the first half as expected, reflecting the impact of improving market conditions and the benefit of acquisitions undertaken in recent months.
"Our markets continue to improve," Mr Buckley said. "Cardno traditionally achieved organic growth of 7% to 9% before the global financial crisis. With the strong performance of recent major acquisitions and a return to organic growth, the company is well positioned for 2011", he added.