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Legend’s profits up 27 per cent.

Legend’s profits up 27 per cent.

IT component company posts half year NPAT of $5 million

Operational performance for the half year ending December 31 has significantly improved for IT components manufacturer and distributor, Legend Corporation (ASX: LGD).

The company’s net profit after tax (NPAT) increased by 27 per cent to $5 million from the previous year’s $4 million, while earnings before interest and tax (EBIT) grew by 32 per cent to $8.2 million from $6.2 million a year earlier.

With earnings per share of 2.3 cps (convertible preference share), a growth of 28 per cent, an interim fully franked dividend of $0.01 cent per share has been declared by the company’s directors and will be made payable on April 27 to shareholders.

Legend managing director, Brad Dowe, attributes the company’s growth to its well performing existing business, as well as strategic acquisitions that have helped make further inroads into engineering construction markets.

“We continue to deliver significant improvements in revenue and earnings whilst maintaining modest debt levels,” he said, “and we are well positioned for further organic growth and acquisitions”.

While Legend has not made forecasts about its performance for the remainder of the 2012 financial year, the company aims to continue investing in business development, as well as marketing and new product development, to drive organic growth.

Dowe expects Legend to continue bringing new products to market to achieve the organic growth, which includes expansion of its computer room products, further additions to its rack and enclosure, fibre and AV range, as well as the integration and expansion of the company’s acquisitions.

"The acquisition of MSF Fibre systems groups adds important technical expertise and range expansion to our fibre optical patch leads, tools, test and accessories catalogue that is a strong complement to our Legend Performance Technology divisions focused on the computer room," he said.

Legend’s recent acquisitions have reasserted the group’s focus on strong growth markets connected with engineering construction; power, rail and mines, and Dowe sees the company further exploring opportunities in these spaces

"We have flagged in all recent announcements our strategy of accelerating our expansion into high growth engineering construction markets, including power generation, transmission, distribution and primary resource infrastructure," he said.


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