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DWS Releases Half-Yearly Results

DWS Releases Half-Yearly Results
Feb 08, 2016 By Ben Khouri Tags: DWS

IT Services company DWS Limited (ASX:DWS), have released their half-yearly results, showing an improvement in revenue and operating cash flow during the period.

Half-Yearly Results

DWS’ revenue for the 6 months ending 31st December 2015 was $68.17 million, a 46% improvement to the PCP. In similar fashion, NPAT (Net Profit After Tax) for the period was $7.6 million, a 49% expansion to the PCP.

The IT Services provider attributes the significant improvement in profits to the recent acquisitions of Symplicit Pty Ltd and Phoenix Pty Ltd.

Moreover, there was an almost 50% improvement in cash receipts from customers over the period. Resulting in a Net Operating Cash Flow of $5.9%, a 9% increase to the PCP.

Recent Acquisitions

Over the period, DWS had acquired and completed a series of acquisitions. Namely the 75% acquisition of IT Services Company Phoenix IT & T Consulting Pty Ltd for $19.5 million in cash. Along with the 100% acquisition of Digital Solutions company Symplicit Pty Ltd for an overall $15 million.

Both have been finalized, with the Symplicit and Phoenix acquisition completed on the 1st of June 2015 and 4th of February 2016.

Capital Structure

Both of the aforementioned acquisitions were in part funded by debt. The Phoenix acquisition is 100% funded by debt. In contrast to the Symplicit acquisition, which has a combination of cash reserve and debt funding.
For the 6 months ending 31st December 2015, DWS has gross bank debt of $18.50 million, and cash reserves of $6.99 million.

Dividend

The board have declared an interim fully franked dividend of 4.75cents per share. The record and expected payment date are on the 16th March 2016 and 4th of April 2016 respectively.

Share Performance

Investors have reacted rather sharply to the announcement, with DWS surging over 9.5% (as at 10.37am AEDT), to $1.26. 

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Ben Khouri Author: Ben Khouri Feb 08, 2016

Ben Khouri is a financial editor for Wise-Owl with a particular focus on the top ASX 300 companies. Having a vast background in economics and finance, Ben provides financial commentary & analysis as well as global market updates, which guide investors in devising investment strategies. Ben specialises in analysing economic data and global events from around the world and examines the impacts they have on the major equity markets.

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