- Speedcast International has dropped 26 per cent today after announcing its financial year results and the resignation of two Directors
- It reported a statutory Net Profit After Tax (NPAT) loss of $175.5 million
- John Mackay has resigned as Chairman but will remain on the Board as Non-Executive Director until September 30
- CFO Clive Cuthell leaves after mutual agreement
Speedcast International has dropped 26 per cent today after announcing its financial year results and the resignation of two Directors.
In the first half of FY19 the company reported a 17.3 per cent increase in revenue to $357.6 million but reported a statutory Net Profit After Tax (NPAT) loss of $175.5 million.
The loss includes a small impact from Australian Accounting Standards Board (AASB) 16 and a $154.8 million negative impact from the impairment of goodwill, relating to the performance of the non-government operating segment.
Speedcast reported a three per cent lift in earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) to $62.2 million and a 20 per cent decline in Net Profit After Tax and Amortisation (NPATA) to $14.7 million.
Net debt increased to $625 million and no dividend was declared in the first or second half.
Speedcast is the largest provider of remote communications and IT services in the world.
CEO Pierre-Jean Beylier said the first half of this financial year was challenging for Speedcast.
“The Board and management are disappointed with the company’s financial performance, the lower than anticipated contribution from Globecomm and slower organic growth,” he said.
“Significant steps have been taken to address our operational performance and return Speedcast to growth.”
The company also announced its two current Non-Executive Directors and Chief Financial Officer, Clive Cuthell, would resign and four new Non-Executive Directors will be appointed.
John Mackay has resigned as Chairman but will remain on the Board as Non-Executive Director until September 30 for the transition to run smoothly.
Stephe Wilks has been appointed the new Chairman and will be effective immediately.
John is thankful for his five years at Speedcast and wishes the company the best.
“Over the past five years, the Company has grown from an under-scaled Asia-Pacific focused remote telecommunications provider to an industry leader with unique global capabilities, scale and infrastructure,” he said.
Speedcast will not name the other resigning Non-Executive Director until they find a replacement.