Tuesday 09 May 2017 by FIIG Research ripples_on_water Company updates

Impact – Weaker than expected but on track to meet FY17 forecasts

Impact’s results for the nine months to 31 March 2017 are slightly weaker than the company forecasts, however are broadly on track to meet our full financial year expectations

Results summary

Source: Company reports

  • While Impact performed slightly below its forecast revenue and EBITDA, it remains on track to meet or come near to our forecasts of $276m revenue and $19.9m EBITDA for the full year to 30 June 2017
  • EBITDA of $16.5m was slightly weaker than company expectations, due to delay in registration and subsequent settlement of Littleton Villas units, and delay in settlements of Villas on Eagle units
  • Positively, unconditional property sales for the nine month period were 943 or 139 ahead of the company’s budget
  • As at 31 March 2017, $199.7m of total contracted future revenue of the group – with conditional contracted revenue discounted by a 20% – has been secured, up from $192.9m as at 31 December 2016. Impact expects approximately $70m of this revenue will be earned in FY17, with the balance of $129.7m forecast to fall in FY18
  • Total debt to total tangible assets was 47% as at 31 March 2017. Under the conditions of the notes, this is required to be a maximum of 45% by 30 June 2017. The company states it is on track to achieve this level

Investors can view the full results on the company’s website.