Please find attached an announcement for immediate release to the market.

Transcription

1 Coffey International Limited ABN Level 19, Tower B 799 Pacific Highway Chatswood NSW 2067 Australia t: f: coffey.com 4 November 2014 Company Announcements Office Australian Securities Exchange - ASX Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 Via e-lodgements: Sequence #747 Dear Sir / Madam Please find attached an announcement for immediate release to the market. Yours faithfully Jennifer Waldegrave Company Secretary

2 FOR IMMEDIATE RELEASE ASX ANNOUNCEMENT 4 November 2014 COFFEY INTERNATIONAL LIMITED (ASX: COF) Q1 FY2015 TRADING UPDATE Coffey International Limited (Coffey) will hold its 2014 Annual General Meeting (AGM) in Sydney today. At the meeting, Coffey will also provide its FY2015 first quarter update for the three months to 30 September Group Coffey s total debt position of $82.4 million at 30 September 2014 was 11% lower than the prior corresponding quarter (Q1 FY2014), but up 7% on June 2014 Coffey completed a $40 million corporate bond issue on 12 September 2014.The net proceeds were used entirely to repay bank debt Operations Geoservices quarterly fee revenue of $53.1 million was 8% lower than the prior corresponding quarter. However, quarterly revenue increased 2% from June 2014 and is the highest revenue result for the last four quarters. Geoservices contracted fee revenue also increased on the previous quarter, rising to $93.4 million Project Management continues to be profitable and is performing in line with expectations International Development reported quarterly revenue of $74.1 million, down 10% on the prior corresponding quarter This followed the completion of a number of lower margin nongovernment aid projects and the sale of the STA business International Development contracted revenue rose significantly on the prior corresponding quarter at $212.8 million Managing Director John Douglas said while there are continuing reasons for optimism in FY2015, challenges remain. Our revenue has stabilised and we are seeing early signs of growth, Mr Douglas said. International Development and Project Management continue to perform well and we are actively managing the challenges of working in a highly competitive Geoservices market. Cash generation and paying down debt remain a high priority. Coffey International Limited ABN

3 Continued focus on debt reduction Coffey s focus on debt reduction continued. Total debt was down 11% on the prior corresponding quarter. The increase in our net debt position from $48.1 million in June 2014 to $65.1million ($40million corporate bonds and $25.1million net bank debt) reflected the cash cycles of our businesses, primarily International Development, and the impact on our USD borrowings from the Australian Dollar devaluing. Our $40 million corporate bond offering in September allowed us to pay down existing bank debt and diversify our funding sources, providing a more balanced debt profile with increased tenure. Total debt at September 2014 $82.4 million $150.8m $155.3m $29.6m $32.2m $114.6m $107.0m $103.7m $103.9m $108.9m $104.2m $123.1m $37.1m $28.7m $37.7m $28.6m $50.8m $91.9m $23.1m $88.7m $30.7m $92.9m $32.3m $87.3m $25.9m $83.3m $22.3m $77.0m $28.9m $82.4m $17.3m $25.1m $77.5m $78.3m $66.0m $75.3m $58.1m $68.8m $58.0m $60.6m $61.4m $61.0m $48.1m $40.0m Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Net Bank Debt Cash - held largely in International Development Corporate Bonds Geoservices fee revenue stabilising in a tough market Geoservices fee revenue increased to $53.1 million for the September quarter, the highest revenue result for the last four quarters. Transport infrastructure continues to grow and mining decline as part of our overall revenue. Geoservices quarterly fee revenue by sector $70.6m $66.5m $65.9m $68.4m $69.6m $62.0m $26.1m $25.8m $23.6m $25.8m $22.9m $23.4m $59.5m $60.5m $57.8m $52.6m $22.4m $23.4m $21.5m $18.8m $45.9m $51.9m $53.1m $21.1m $20.9m $19.8m $23.0m $18.6m $18.9m $18.2m $15.6m $11.9m $11.5m $11.5m $8.0m $19.0m $8.3m $19.8m $6.9m $13.3m $13.5m $11.7m $14.3m $11.8m $14.2m $7.8m $7.8m $7.4m $12.1m $12.0m $11.9m $10.4m $8.0m $8.1m $5.6m $7.4m $7.3m $7.8m $7.6m $7.5m $7.0m $6.8m $6.9m $8.0m $6.7m $4.1m $4.1m $3.6m $5.6m $5.7m $7.9m $2.3m $1.8m $3.5m $3.5m $3.5m $5.0m $4.2m Q Q Q Q Q Q Q Q Q Q Q Q Q Transport infrastructure Mining Oil & Gas Property Other In a highly competitive Geoservices market, margins remain consistent with those reported for H2 FY2014. Coffey International Limited ABN

4 Contracted 12 month forward fee revenue r forr Geoservices at September 2014 rose to $93.4 million and is broadly in line with September The business has seen an increasee in tendering activity, and some important project wins particularly in the infrastructure space, although competition remains high. Geoservices 12 month contracted fee revenue $101.0m $104.5m $108.0m $116.5m $ $100.0m $94.5m $101.0m $98.0m $90.0m $93.4m Jun 12 Sep 12 Decc 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 We continue to focus on growing our Geoservices business within our o existing geographic footprint. Project Management remains profitable Project Management continues to be profitable and is performing in line with expectations. International Development performing well Our International Development business continues to deliver consistently goodd results, and has achieved strong revenue of $74.1 million in the quarter. Although this was down on the prior correspondi ng period, it followed the completion of a number of lower margin non-government aid projects and the sale of the STA business. Our work with our key government clients continues at consistent levels and reflects our main focus for International Development. International Development quarterly revenue by sector Coffey International Limited ABN

5 The 12 month forward contracted revenue for International Development at September 2014 also remains strong at $212.8 million. This is significantly higher than the prior corresponding period and reflects the growth of our International Development business over the last 12 months. New work for this business is seasonal with contracts awarded in line with government business cycles. We have a number of new projects at the proposal and negotiation stage, all of which are scheduled to be awarded through the remainder of FY2015. International Development 12 month contracted total revenue $221.7m $198.7m $167.9m $178.0m $167.0m $164.9m $212.7m $173.2m $230.7m $212.8m Jun 12 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Future updates Coffey will announce its FY2015 half year results on 9 February In addition to our scheduled results updates, we will provide a Q3 FY2015 trading update in early May Ends - For further information Investor contact: Ms Chris Bowen Investor Relations Consultant Media contact: Joeley Pettit Group Communications and Corporate Affairs Manager About Coffey International Limited Every Coffey relationship is built on trust. Trust that s hard-earned through our proven expertise, our depth of global experience and our commitment to stay one step ahead. Our specialists in geoservices, international development and project management work in partnership with our clients across the globe. We create value throughout the project lifecycle in the mining; oil and gas; transport infrastructure and property industries. We deliver vital international aid projects for our clients. Our united group of specialists take enormous pride in collaborating with our project partners. By digging deeper. Thinking smarter. And seeing further. All so we can deliver the smartest solutions, every time. Visit coffey.com Coffey International Limited ABN