Melbourne, Australia, August 21 2014 – Azure Healthcare Limited (ASX:AZV) today announced its results for the fiscal year ended 30 June 2014, demonstrating continued and substantive growth in revenue and profit.
- Revenue from ordinary activities including interest income up 39.2% to $31.319 million compared to $22.504 million in the previous corresponding period
- Net profit after tax up 271.7% to $3.865 million compared to $1.040 million for the previous year
- EBIT up 207.5 % to $3.404 million
- Earning per share (EPS) up 300% to 2.04 cents per share compared to 0.51 cents in the previous corresponding period
- NTA up 55.68% to 5.76 cents per share from 3.70 cents per share for the previous corresponding period
- Positive Operating Cash flow of $0.577 million
The Azure Healthcare Board and Management team are pleased to report a continued and substantive improvement in the Group’s performance, as the company continues to establish itself as an international provider of integrated healthcare and clinical workflow solutions in the healthcare space. Paving the way for this strategic initiative is the company’s flagship 3G Solution Tacera, designed to help facilities profit from the intelligent use of integrated technology, and meet the increasing international demand for workflow solutions.
“We believe this year’s success is a direct reflection of the company’s strategic decision to respond to the expanding trend towards clinical workflow integrations, and make the transition from Nurse call system manufacturer to a provider of clinical workflow software and healthcare solutions”, commented Azure’s Chairman and Chief Executive Officer, Mr Robert Grey.
“We continue to be excited by the potential of the clinical workflow market, the demand of which is being met by our 3G Tacera solution. This direction has enabled us not only to expand in our traditional markets (Australia and New Zealand) but has allowed substantial growth in North America and Asia, so much so that we recently set up another factory in the US” continues Grey.
The group now has its products installed in more than 8,500 sites globally, one of the largest installed Nurse call system footprints in the world.
Revenue, in comparison with previous corresponding period from ordinary activities showed a steady increase of 39.2% ($22.504 million June’13 to $31.319 million June’14) reflecting increased demand for the new generation Tacera products. Net profit after tax (NPAT) showed a substantial increase of 271.7% ($1.040 million June’13 to $3.865 million June’14).
The Group produced earnings of 2.04 cents per share and NTA up 55.68% to 5.76 cents per share. There was more positive news with earnings before interest, tax, depreciation and amortisation (EBITDA) increasing to $3.890 million, whilst earnings before interest and tax (EBIT) increased to $3.404 million. The year further produced an encouraging increase in gross margin of 57% (up 4% from previous year) adding more than $1.2 million to the bottom line.
Other operational highlights
Azure’s operating expenses increased by 31.1% over the prior corresponding period due to the increase in compliance costs and US factory set up costs and continued investment in research and development (R&D). The company invested $0.25 million in Compliance expenses including FDA registration and UL approval, and R&D investment of $2.6 million; all of which were expensed in the 2014 financial year.
During the year the company retired $0.4 million in debt, the balance sheet showing a bank debt of $1.30 million with cash at bank of $1.6 million as of June 2014.
The liquidation of the Australian contracting division TSV Australia Pty Ltd was finalised on 26 June 2014, the liquidation process facilitating a further debt reduction of $0.01million, with no adverse impact to the remaining Azure Group.
Over the course of the next financial year the company expects to continue to increase its expansion into the clinical workflow software and healthcare solutions space, and improve on business performance. To achieve this the group has a strong continued growth strategy, based on a number of initiatives including; continued investment in R&D, paying specific attention to software integrations, the expansion of interoperability partnerships, and the strategic acquisition opportunities of complimentary businesses in the international markets.
“The 2014 Fiscal year has been a very good year for the Azure group and with the industry expected to grow at 20% per annum, we will continue to address the market drivers within the Nurse call/Clinical workflow space, invest wisely and to leverage sales through our already extensive worldwide reseller channels and client base. All in all, it looks like a promising year ahead and we expect our growth to continue for the foreseeable future “ concluded Grey.
For further information please contact:
Mr Robert Grey
Chairman & Chief Executive Officer
Telephone: +614 1135 1938
Mr Jason D’Arcy
Telephone: +614 1767 7732