OTOC Limited (ASX: OTC) is pleased to provide earnings guidance for the financial year ending 30 June 2016.
OTOC expects to report FY2016 underlying earnings before interest tax and depreciation (EBITDA) of over $15.2 million. This guidance is subject to audit review. OTOC’s audited financial accounts are expected to be finalised in mid-August 2016.
Anticipated EBITDA for FY2016 is a significant improvement over the prior corresponding period of financial year ended 30 June 2015 (FY2015 Underlying EBITDA: $4.3 million).
Repayment of debt was undertaken earlier in FY2016 and following the acquisition of Linker Surveying in NSW, OTOC continues to maintain a strong cash position.
OTOC Chief Executive Officer Simon Thomas said:
“This result is a combination of our business divisions achieving strong operational and financial results.
OTOC Australia’s impressive delivery of the largest integrated off-grid solar and battery storage facility in Australia and ongoing civil infrastructure work at Nauru Island, across a reduced cost base has resulted in a marked improvement in EBITDA for the financial year.
Our strategy, ‘to create a quality national survey and spatial solutions company,’ has advanced during the year both through the acquisition of a premium survey business in a key geographic market and the closer integration and working relationships between our incumbent businesses. We also continue to monitor and assess further acquisition opportunities to consolidate this highly fragmented sector.
OTOC now has significant market coverage and we are well placed to benefit from the projected growth in the property and civil infrastructure sector of the East Coast of Australia.”