MYOB has announced an on-market buyback of up to 5 per cent of its shares following the posting of a healthy year result.The company today reported revenue from continuing operations of $161 million for the year ended 31 December 2005, up by 39 per cent compared to the year earlier. EBITDA increased a healthy 41 per cent to $61 million, up from $43 million in the prior year.
The company achieved a typically software oriented EBITDA margin of just over 37 per cent, up slightly on the prior year, with a 98 per cent increase in earnings before interest and tax (EBIT) to $25 million.
In releasing the results, Craig Winkler, MYOB’s Chief Executive Officer said, “I’m very pleased to report such positive results at the close of our first full year post merger with Solution 6. We’ve worked to consolidate our position as a significantly larger company around the world, and have put in place the fundamentals for strong growth in revenue and profitability in the medium-term. We have a clear vision for the future and will continue to invest for the long-term.
“Our capital position is excellent, with cash on hand of $44m and access to significant debt capacity to fund appropriate acquisitions. Importantly, we generate great cash flow from our existing businesses, which more than fund our organic growth options. As a result, we have today announced an on-market buyback of up to 5 per cent of the issued capital of the company together with a special fully franked dividend, as we continue to manage our shareholders’ capital carefully.”
The Board has approved a final dividend of 2.75 cents per share fully franked and an additional fully franked special dividend of 1.25 cents per share. The 4.00 cents in dividends will be paid on 21 April 2006 to all shareholders on the register at the books closing date of 3 April 2006. The company’s shares rose accordingly.