APM posts FY revenue jump as earnings, profit tumble
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The news: APM Human Services has revealed higher year-on-year revenue, but lower earnings and profit, for the 12 months to 30 June, ahead of September's shareholder vote on the proposed takeover by US private equity firm Madison Dearborn Partners (MDP).
The numbers: APM's preliminary unaudited results showed that revenue grew 23% year on year to $2.332 billion.
However, EBITDA was down 23% to $281 million and NPATA fell 46.6% to $95 million, compared to FY23. Net debt at 30 June was $800 million, up 3.4% compared to last year.
APM noted that the carrying value of intangibles, including goodwill and customer contracts relating to historical acquisitions and contracts, was reviewed as part of the year end audit process, and totalled $2.169 billion at 31 December.
The company flagged a preliminary unaudited impairment, based on the offer price under the proposed takeover scheme, in the range of $250 million to $250 million, while "various factors" could influence the final impairment assessment.
APM's shares lifted 0.7% to $1.4 by 11:10am AEST, having gained more than 14% since the turn of the year.
The context: Last month, APM's board unanimously recommended that its shareholders vote in favour of an improved takeover offer from its largest shareholder MDP, valuing the company at $1.3 billion.
APM has entered into a scheme implementation deed with MDP subsidiary Ancora BidCo, which will see APM shareholders receive $1.45 cash per share. MDP currently holds a 29% stake in APM and has three directors on the board.
APM previously said that implementation of the scheme is expected to take place before the end of the calendar year.
The source: ASX announcement
