Coffey International Limited  today announced a positive EBITDA1 of $15.9 million for the half year ending 31 December 2012 which marks a return to profit for the Company against the EBITDA loss of $0.5 million reported for the full year to 30 June 2012. The Company reported a Net Profit after Tax (NPAT) of $3.7 million, despite the sharp slowdown in the mining sector which affected operations within its largest business, Geosciences.

Managing Director John Douglas said: “The turnaround of Coffey remains well on track. Fee revenues from continuing businesses increased 3% on the prior corresponding period. I am pleased to see the resilience in Coffey’s overall revenue performance in the face of the sharp downturn in the mining sector during the period. Our focus on core businesses with diversity of earnings – by sector and geography – and tight control of costs
have ensured the Company was still able to return to a net profit position.

“Our ability to generate healthy operating profits and continued focus on debt reduction also supported a competitively tendered refinancing of our debt facilities this month for another three years. That this was achieved, on improved terms, is a further signal of the progress we are making. We believe these achievements confirm that Coffey has substantially de-risked its operations and is now far better placed to achieve sustainable
growth,” Mr Douglas said.

Summary
Financial Performance

• H1 2013 fee revenue of $213.2 million
• H1 2013 EBITDA of $15.9 million
• Positive NPAT of $3.7 million
• Strong cash management with improved operating cash flow of $13.7 million
• Stable net asset position of $136.8 million
• Continued progress on net debt reduction with net debt reduced to $58.1 million
• Gearing ratio continues to reduce down to 30%
• Debt facility extended for 3 years to February 2016
• No interim dividend declared for the period.

Business Performance

• Safety disciplines are now well embedded across the Company, and performance remains comfortably under the external industry benchmark.
• Corporate overheads remain stable at $2.4 million reflecting tight control.
• Staff turnover has been driven down to internal target levels.
• Performance across core divisions:
o Geosciences – Fee revenue increased 4% to $137.9 million (H1 2012 $132.4m) despite tough conditions in the mining sector. Diverse exposure across market sectors and exposure to oil and gas markets ensured resilience to the division’s fee revenues.
o International Development – Fee revenue increased 10% to $59.9 million (H1 2012 $54.3m). Both the Australian and US businesses have outperformed, partially offset by the weaker than expected, but improving, performance from the European operations.
o Project Management – Fee revenue of $15.4 million was down (H1 2012 $19.3m) as some of the government stimulus work completed and the private property sector is yet to see any signs of recovery.