G3 Group Delivers Strong Half Year Result

Media release 30 November 2016

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G3 Group Delivers Strong Half Year Result

G3 Group [NXT: GGL] has reported a strong half year trading performance boosted by its document management divisions, recent acquisitions and growth in NZ business mail operations.

According to their preliminary financial result for the six months ended 30 September 2016, actual EBITDA improved 48.3% to $3.141m compared to the corresponding period of the previous year. Underlying EBITDA performance before one-off and abnormal expenses improved 24.9%.

The company also saw gross profit increased 30.4% to $6.940m from $5.323m supported by a 28 percent reduction in corporate overheads to $1.05m while actual NPAT improved 44.8% to $1.672m compared to the corresponding period in the previous year. Underlying NPAT performance before one-off and abnormal expenses improved 16.1%

Total sales for the six month period increased 37% compared to the previous corresponding period, from $21.8m to $29.9m.

Group chief executive officer Mark Brightwell says the performance was pleasing across the board and the company remained on track to achieve its strategic objectives.

“Our recent acquisitions in the document management industry have performed well against expectations as have our traditional mail operations, with substantial new business mail volume won and some customers stockpiling prepaid product prior to a postage rate increase during the period.

“The New Zealand and Australian document management businesses have also performed well during the half year period with organic growth, market share gains and increased operating margins,” he says.

Brightwell says no dividend was declared as the company continued to build its cash reserves for future acquisitions.

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