Spotless Group (SPO) shares ended up more than 6% yesterday after revealing a solid result for the year to June, its first back on the ASX for some years.
The shares jumped 8% in early trading as the wider market fell more than 1.3% in a rare example of going against the trend (Pac Brands and Amcor shares did the same thing).
The surge in Spotless shares then slowed as trading also turned the other way in the wider market and momentum lifted the ASX to a gain for the day of 2.6%, directly contradicting the futures market’s 3% loss at the start of trading.
The shares closed at $1.85.
Spotless is a services giant – it covers cleaning, catering and facility management for the private sector and for various levels of government. It floated on the ASX in May 2014 at $1.60 a share, after being taken private in 2012.
The company reported a 12.3% jump in pro-forma revenue to $2.8 billion for the year to June 30, while pro-forma net profit jumped 34% to $142.8 million.
The company will pay a final dividend of 5.5 cents a share on September 25. That takes the full year payout to 10 cents a share for the full year back on the ASX.
Spotless said that during the year it won new contracts with Melbourne Airport, Western Australia Department of Housing and the New Zealand Defence Force, as well as renewing existing agreements with long-term clients the MCG and Australian Defence Force.
CEO Bruce Dixon expressed confidence the company could deliver further improvement in 2015-16, particularly as cost savings from the acquisitions made in 2015 contribute to the bottom line.
“Margins remain in line with our global peers and we see further upside as we improve processes and look for efficiencies in the new businesses currently being integrated into Spotless,” Mr Dixon said in yesterday’s statement.
The company said it had build a "strong growth platform" from five acquisitions announced during the year.
“Subject to economic conditions, we expect the FY16 results to materially exceed the FY15 results,” directors said yesterday.
