This week network services business Service Stream Limited (ASX: SSM) reported its half-year results for the period ending December 31 2018. Below is a summary of the results with comparisons to the prior corresponding half.
- Statutory net profit of $24.1m, up 21%
- Revenue of $348m, up 18%
- Operating cashflow of $17.9m
- Adjusted earnings per share of 6.97 cents, up 24%
- Interim dividend of 3.5 cents per share, up 17% from 3 cents per share
- Net cash on hand of $69.5 million, up 5%
Service Stream is in the network services business in that its engineers and employees help maintain technology and other infrastructure in the communications, electricity, gas and water space.
Around half of its business is related to the maintenance of the critical telecommunications infrastructure around Australia that consists of hundreds of mobile towers and thousands of physical digital broadcast sites.
In January 2019 it completed the acquisition of Comdain Infrastructure for $161.7 million on a "cash and debt free basis" on 7.4 FY19's forecast EV/EBITDA.
It expects EBITDA from continuing operations in the second half to at least match the first half, with a significant additional contribution from the new acquisition.
