Vector announces positive first quarter result

15 November 05

Vector announces positive first quarter result

Vector Limited today announced an unaudited after-tax net profit of $36.3 million for the first quarter ending 30 September 2005.

Chairman Michael Stiassny says the result was in line with the company's expectations for this time of the year.

"Overall, our first quarter result is a very positive start to our first year as a listed entity. The result is in line with our expectations and we are confident that we are on track to meet our year-end prospectus forecasts."

The first quarter period saw Vector record earnings before interest, tax, depreciation and amortisation (EBITDA) of $180.1 million and a net profit after tax and amortisation (NPATA) of $60.3 million.

Mr Stiassny says the increase on last year, particularly in EBITDA, largely reflects the substantially increased size of the business.

"Our result is particularly difficult to compare to the same time last year given it includes the addition of NGC's operations in to the group."

Mr Stiassny says while the company continued to meet its core business operational targets during the period, it also successfully executed two major initiatives.

"Firstly Vector's listing on the New Zealand Stock Exchange which was well supported by both private and institutional investors. This was then followed by the successful acquisition of the remaining shares in NGC. Both were important strategic moves for the business and have positioned us well for the future."

Looking ahead, Mr Stiassny says the company is now firmly focused on bedding down the merger between Vector and NGC.

"While the integration of the two companies is a major process that will take some time, we have already completed the first step with the appointment of the executive team. This is a significant milestone for the newly combined business and we remain confident that we are on track to complete the full integration of the two businesses by mid-next year."

Key financial information (unaudited) for the quarter to 30 September 2005:

ENDS

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