FLLYR: SPT: 2010 Annual Results

20 Aug 2010 10:39 am

SPT 20/08/2010 FLLYR

REL: 1039 HRS Spotless Group Limited

FLLYR: SPT: 2010 Annual Results

Spotless Group Limited (ASX/NZSX: SPT) today announced NPAT of $43.0 million for the year ended 30 June 2010, an increase of 0.7 per cent on the prior corresponding period (pcp).

Managing Director & CEO, Josef Farnik said "In 2010 Spotless achieved credible results in the context of difficult market conditions. Importantly, we continue to make critical internal investments as part of our 5 year strategic plan to transform Spotless.

"Challenging demand conditions across our existing base of contracts extended into the second half. However 2010 sales revenue rose almost seven per cent2, a result of recent contract wins and bolt-on acquisitions.

"A number of significant and strategic Facility Services contracts were secured across the public and private sectors. This reflects a strong client response to our evolving services portfolio, tailored to meet the specific needs of our key sectors across single and integrated services.

"We seek to meet client needs by drawing on the company's deep operational expertise, exemplified by our 37,000 employees and 17,000 suppliers delivering over 125 services to 14,000 clients.

"Braiform market conditions in Europe and North America remain soft overall, with no clear economic trend. By contrast, in 2010 the business delivered positive earnings growth. Pleasingly, we successfully mobilised three European reuse hanger contracts, and continue to hold discussions with prospective clients regarding this leading environmentally and financially beneficial solution.

"During the year Spotless raised $86 million from institutional and retail investors. The group has strong free cash flows and a robust balance sheet to support strategic reinvestment. One such investment is a company-wide program aimed at standardising and simplifying our core business processes and IT platforms, delivering long term efficiencies.

"Further, by investing in one of the world's most energy efficient laundries in Brisbane, Spotless is embedding environmental practices and resource efficiency into its operations.

Recent acquisitive investments include the March 2010 acquisition of Cleanevent and the July 2010 acquisition of a commercial laundry operation from Ramsay Health Care. Spotless continues to assess both strategic and bolt-on acquisition opportunities across related services and sectors.

"We remain confident that we have the right strategy to enable Spotless to fully realise its potential and remain committed to delivering sustainable value for our clients, shareholders and people. In the absence of major unforseen events, Spotless expects that FY11 revenue and earnings will exceed FY10 levels. End CA:00198605 For:SPT Type:FLLYR Time:2010-08-20:10:39:19

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