Legend restructure helps deliver stronger results

An operational restructure has enabled ASX-listed Legend Corporation (ASX:LGD) to report stronger full-year results.

The company reported $103 million in revenue for the financial year ending June 30, up from $87.1 million last year. Earnings before tax reached $10.4 million, up from $9.2 million the previous year. Net profits were $4.1 million.

During the past year the memory manufacturer and distributor cut back its commodity memory manufacturing business and consolidated its local warehouse operations. This included closing several Asia-Pacific operations in New Zealand, Singapore, Hong Kong, Taiwan, Thailand and South Africa.. Legend blamed falling average sale prices and tough market conditions for the decision.

The organisation has brought its net debt down from $34 million to $25.9 million in the six months to June 30.

“We’ll keep reducing that in the same way that we have over the last year, by continuing to run a profitable operation,” CEO, Bradley Dowe, said. “It’s clear that we’ve turned a very important corner against an industry landscape that has been particularly severe.

“We acted aggressively and we’re back in the business of growing our bottom line.”

Dowe said restructuring the business has lead to improvements in services from its Seven Hills facility, which opened in June.

“It allows us to bring all of our major stock under one roof on the eastern seaboard,” he said. “We’re able to achieve delivery rates of virtually all orders shipped within the day.”

Dowe said he intended to launch a new range of products before Christmas.

“We’ll be adding to our product line-up and that will be a continuous feature into the current financial year,” he said. “We were certainly bound in our earlier facility simply by the lack of physical space, so we had a bit of cap on how we could effectively add to our line card.”

Legend has also opened up a sales office in China and established a network of sales representatives in the US.