For the second year in a row, global testing multinational ALS Ltd will pay a higher dividend to shareholders after another solid performance in the six months to September.
And directors have boosted 2022-23 net after tax profit guidance 17% to a new record of range of $300 to $320 million for the year to March 31.
That was a rare example of a specific guidance from an ASX 200 this reporting season – other guidance has been more elliptical and vague, if at all.
The Brisbane-based company told the ASX yesterday the interim dividend will be lifted to an unfranked 20.3 cents a share from the previous interim of 15.8 cents a share (30% franked)
Directors said the unfranked nature of the dividend “was driven by lower tax payments in Australia in H1 FY23 as a result of participation in the Australian Federal Government’s Instant Asset Write Off Scheme” but reflected the company’s “strong current trading conditions and liquidity position”.
The company reported a 29.3% rise in underlying net profit after tax of $164.3 million, which was just above the top-end of the guidance (provided in August) of $157 million to $162 million.
The solid rise in earnings was struck after revenue rose 24% to a record $1.268 billion for the half “due to contribution from acquisitions and strong performances from ALS’s Life Sciences and Commodities divisions.”
Statutory net profit after tax jumped to $147.4 million, up $73.3million following strong underlying performance in the period and lower one-off cost.
CEO Raj Naran said in Monday’s ASX release: “The Group has again delivered strong organic growth, margin accretion and made a number of strategic acquisitions during the period.
“The performance was driven by the strong contribution from both Life Sciences and the continuation of commodity demand, volume growth and price improvement in the Commodities division.
“Volumes have continued to grow despite the challenging economic backdrop and earnings were supported from pricing strategies that offset inflationary challenges.
“The Group has made good progress towards the FY27 financial objectives set within our newly established five-year strategy.
“We remain committed to meeting these objectives and continue to execute within the challenging economic conditions. Our balance sheet is well positioned to support our ambitious growth targets.”
ALS shares eased 0.6% to $12.07.
