Friday 26th February 2021
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Chair and Chief Executive Officer’s Report
The first half of the FY2021 year was the most dramatic six months in the recent history of the Group. We restructured the company in June 2020, merging the businesses of Just Water and Hometech into the Just Life Group. The management focus was to turn this merged group into a ‘well-oiled machine’, which has now been achieved.
As previously advised, FY2021 revenue was always going to be significantly reduced. Fortunately, the revenue decrease was held to only 9%. With our reduced operating costs as a result of the restructure plus three months’ trading results from The Cylinder Guy, we are pleased to be able to report an increase in earnings.
In summary, after-tax earnings for the period were $1.6 million, compared to $1.4 million during the corresponding period in the prior year, an increase of 16%. This was an increase in earnings per share from 1.6 cents to 1.8 cents.
Statement of Financial Position highlights
Shareholder equity increased from $16.5 million at 31 December 2019 to $18.9 million at 31 December 2020. (At 30 June 2020, shareholder equity was $17.7 million.)
During the past year the interest-bearing debt levels of the Group relative to its total assets reduced from 30% of total assets as at 31 December 2019, to 24% as at 30 June 2020 and reduced further to 23% at 31 December 2020. This provides us with ongoing headroom to borrow funds if we believe it is appropriate to do so.
Cash flows from operating activities were $3.3 million for the six months to 31 December 2020 compared to $2.0 million for the same period last year. Free cash flow increased from $1.3 million for the six months to 31 December 2019 to $2.9 million for the six months to 31 December 2020.
Shareholder interim dividend
The Company’s earnings for the first six months of FY2021 are 16% ahead of the corresponding period in the previous year, primarily as a result of operating efficiencies, and the restructure in June 2020. The directors have decided to declare an interim dividend of 1.0 cent per share (2020 – 1.0 cents), with a record date of 12 March 2021 and payment date of 19 March 2021.
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