Legend Corporation (ASX:LGD) has reported profit growth off the back of strong performance for the year to 30 June 2011 across all the memory and semiconductor manufacturer’s businesses.
In an ASX statement, the company said it had recorded a net profit after tax of $8 million, up 21 per cent year-on-year, while EBITDA was $14 million, up four per cent over the same period. Operating cash flow was $14.6 million, up from $12.4 million the previous year.
Legend runs two major business divisions, memory modules and semiconductors, which sells under the Hendon Semiconductors and Legend Performance Technology brands; Electrical, Data and Communications, which sells under the CABAC and CABAC Power brands.
According to chief executive officer, Brad Dowe, the result was in part attributable to a significant growth program carried out during the year, which included investing in logistics and warehousing in Western Australia to improve the company’s ability to deliver products to that growth market.
The company’s product range had also been refined, increased and improved, and a number of acquisitions were also made — Kulak, a manufacturer and distributor of products to electrical wholesale and electrical distribution markets, and CCI, a manufacturer and distributor or power measurement tools and battery management technologies.
Since the new financial year, the company has also acquired MSS Power, a Melbourne-based maker of specialised heavy duty tools. The company has also acquired MSS Fibre Group, which provides fibre optic cables.
Meanwhile, MSS Fibre Group complements Legend’s electrical power division, as is expected to benefit from the accelerating National Broadband Network rollout.
In February, the company said it stood to benefit from infrastructure rebuilding efforts following January’s floods.
In August 2010, the company recorded a 45 per cent growth in net profit after tax to $6.6 million for the year to 30 June 2010. The company also recorded an EBITDA of $13.4 million, up 28 per cent year on year. Revenues declined four per cent to $86.8 million.
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