Record Revenue, Profit and Dividend

Aug 25, 2009

ASX RELEASE – Tuesday, 25 August 2009

Leading Australian IT and e-commerce company, Manaccom Corporation Limited (ASX:MNL), today announced a series of record results including:

  1. Revenue up 55% to $59 million.
  2.  Net Profit Before Tax up 68% to $3.86 million reflecting trading growth.
  3.  Net Profit After Tax up 8% to $2.96 million (up 78% if a once off intial recognition of deferred tax of $1.07 million is added back to FY08 results).
  4. Full year dividend up 50% to 1.5c fully franked.
  “Our record result was driven by strong growth in our flagship website www.ozlotteries.com in addition to robust trading in the distribution and software publishing division,” said Manaccom Corporation CEO, Mr Mike Veverka. “The exclusive 5 year agreement with NSW Lotteries signed in December 2008 has been positive for the online lottery division in the second half of the financial year”, he said. “In addition, the exclusive 3 year agreement with McAfee Inc signed in May 2009 has set the distribution and software publishing division on a positive path”, he said. “I wish to thank all staff for their contribution towards both these milestone agreements and for this excellent result”, said Mr Veverka.
Highlights of the results are summarised below.  
   

FY09

 

FY08

  Change
  Revenue   $58.6 million   $37.8 million   Up 55%
  EBITDA   $5,059,248   $2,866,437   Up 77%
  Net Profit Before Tax   $3,857,670   $2,294,486   Up 68%
  Net Profit After Tax   $2,957,335   $2,730,526  

Up 8%

  Net Profit After Tax (Adjusted for comparison purposes)   $2,957,335   $1,663,032   Up 78%
  Online Lottery Division A 5 year exclusive online agreement with NSW Lotteries signed in December 2008 had a positive effect to the second half results as customers began to flow from the official NSW Lotteries website at www.nswlotteries.com.au. The record $90 million Oz Lotto jackpot drawn on 30 June 2009 also generated significant activity in the last month of the financial year. Substantial advances made to the company’s software technology used on the www.ozlotteries.com website had a significant impact on the increase in sales and had a positive effect on the relationship with NSW Lotteries.
A 5 year reseller agreement was also signed with the Tatts Group (ASX:TTS), another key partner for the online lottery division. A 12 month agreement with ninemsn, Australia’s leading online media company, was signed in July 2009 to continue the partnership to promote OzLotteries.com on www.ninemsn.com.au. The business was acquired in 2005 and is involved in the online sale of Australian lottery tickets from www.ozlotteries.com and from a number of outlets in Pacific countries such as Fiji, Samoa and Norfolk Island.   Distribution and Software Publishing Division A 3 year exclusive agreement was signed with McAfee Inc. (NYSE: MFE) to distribute its leading consumer software titles, including the award winning McAfee Internet Security Suite. McAfee Inc is the largest dedicated computer security company in the world. Recently in July 2009, MYOB was added as a supplier with the signing of a distribution agreement. The division capped off a good year by winning the coveted Harvey Norman Software Supplier of the Year for the third consecutive time. Other key relationships include Officeworks, Dick Smith, JB Hi-Fi, Big W and Noel Leeming. Other products include Net Nanny and Zone Alarm. Full technical support on all products is provided through an inhouse call centre. The business was acquired in September 2007 and it publishes and markets popular software titles through large retailers and independent resellers in Australia and New Zealand.

 

Once off Initial Recognition of Deferred Tax in FY08 The following table explains the once off initial recognition of deferred tax in FY08 so a more meaningful comparison between the two years can be made.  
        Net Profit Before Tax

FY09

   

$3,857,670

FY08

   

$2,294,486

Change     Up 68%
  Tax   ($900,335)   ($631,454)  
  Net Profit After Tax prior to once off tax transaction   $2,957,335   $1,663,032   Up 78%
  Prior year losses     $1,067,494  
brought to account      
  Net Profit After Tax   $2,957,335   $2,730,526   Up 8%
  The group changed to a consolidated basis for taxation purposes which allowed it to take advantage of carried forward tax losses (subject to conditions of deductibility).   The Appendix 4E is attached.   For further Information: Mike Veverka CEO,  Manaccom Corporation Limited (07) 3331 5950


Media Assets
 25082009.pdf