MYOB increases earnings

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Accounting software vendor MYOB expects earnings before interest and tax up 50 percent to $16 million for the half year to 30 June 2003.

MYOB had EBITDA of $12.5 million in the half year to 30 June 2002. MYOB--which released its half-year trading update to the ASX this morning--said the results represent an EBITDA margin of 36 percent and should provide a good foundation for the full year report.

Matthew Critchley, chief operating officer at MYOB, said last year's positive results had continued into this year. “Our earnings growth demonstrates our ability to leverage both the product development and operational cost base of the business," Critchley said in a release. "This growth has been achieved notwithstanding unfavourable factors including the impact of SARS in our Asian territories and the stronger Australian dollar in both our Asian and US operations.”

Revenue for the half year is expected to come in at $45 million, 19 percent higher than the previous corresponding half, with especially strong results recorded in Australia and New Zealand.

The March acquisition of NZA Gold had boosted revenues as well, the according to the company. MYOB net cash balance at the end of the half-year is expected to pass $17 million, after paying out $4 million for NZA Gold and $16.7 million for a 12.7 percent stake in Solution 6 bought 19 June.

Craig Winkler, CEO of MYOB, said the “strong start to 2003” puts the company on track for continued profitable growth. “Our strategy of empowering small business owners to build better businesses through the adoption of our value-adding business solutions will continue to deliver sustained revenue and earnings growth,” Winkler said in the ASX announcement.


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