‘Global voice specialist’ MNF Group says profit is up for the full year ending 30 June 2016, with EDITDA up 46% to $17.8 million.
With MNF Group’s EBITA up 46% to $17.8 million on total revenue of $161.2 million, MNF is celebrating an increase of 88%, producing ‘a final net profit after tax (NPAT) of $9.0 million which is 7.0% above the company’s published forecast.’
In addition, the total Dividend for the full year ‘has increased by 22% to 7.0 cents per share fully franked, with the company now declaring a final dividend of 3.5 cents per share.’
MNF Group CEO, Mr Rene Sugo said: “Our strong overall performance this year is a result of solid contributions from all three segments of the business – Domestic Retail, Domestic Wholesale and Global Wholesale. Organic growth played a key role in this result, with Domestic Wholesale leading the growth with its gross profit contribution up a very solid 50% on last year.
“The TNZI acquisition integration is progressing very well with the new Global Wholesale segment already performing above expectation, and showing excellent prospects going into FY17.”
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The company says its result ‘produces a robust full year balance sheet with plenty of capacity to fund organic growth and a comfortable buffer to pursue potential acquisitions.’
We are then told that ‘a healthy cash balance has resulted from a combination of factors, including: final working capital adjustment from completion of the TNZI US business, finalising TNZI supplier novations, excellent receivables management, and the company’s strong EBITDA performance.’
So, what was the big increase in the company’s top line revenue?
The company says it was ‘largely due to the full year contribution of the TNZI Global Wholesale business (excluding the US).’
‘The US component of this transaction was completed at the end of May 2016, resulting in only 1 month of TNZI US revenue being recognised in this financial year. However, in relation to the TNZI US business, it should be noted that a full 12 months of EBITDA contribution was recognised in this result due to the interim transition arrangements in the TNZI acquisition.’
There’s also a TNZI Post-Acquisition Update.
MNF Group says ‘the integration of the TNZI acquisition is progressing well, with all major project milestones for the year having been achieved. These include – staff integration, Wellington office relocation, IT systems separation, customer & supplier novation, and US licensing & transaction completion. The global network expansion and upgrade program is well underway.’
‘The expansion of the UK (London) Point of Presence (PoP) was finalised earlier this calendar year, and the US (Los Angeles) PoP upgrade has been completed in July 2016.’
After some logistics delays, MNF Group says it ‘can now announce that the Hong Kong PoP first phase construction has just been completed,’ and says it expects ‘it will be fully operational very shortly.’
Business Outlook and Guidance
The MNF Group says it is ‘now operating three very solid and independent segments – Domestic Retail, Domestic Wholesale and the Global Wholesale. Inside each segment are multiple product lines with excellent customer diversity and profit contribution.’
The company says aAll segments operate in its core area of expertise, being: enabling new and disruptive voice communications through software development and network deployment.
Were told that ‘each segment has a well-defined strategy for investment & expansion to produce strong and sustainable organic growth, now and well into the future.’
MNF Group’s board believes the company ‘has demonstrated its ability to harvest value from accretive acquisitions and integrate them quickly & effectively to improve the overall performance of the business.’
And, ‘with a discerning and conservative approach,’ MNF Group says it ‘will continue to actively search for further acquisition opportunities,’ whilst it remains ‘totally committed to driving growth and performance within the business.’
Webinar: Full Year FY16 Financial Results
The video recording of the Full Year FY16 Financial Results webinar hosted by MNF Group CEO Rene Sugo will be available on Friday 19th August at MNF Group here.