InvoCare posts modest half-year profit ahead of TPG takeover vote

The news: Funerals provider InvoCare has recorded a half-year net profit after tax of $4.5 million, down from a restated $41.1 million for the same half last year, following the adoption of new accounting standards. Excluding the effect of the new standards, Invocare cleared $5.1 million compared with a $16.8 million loss in the same half last year.

The numbers: Operating revenue grew 5% to $287 million, while earnings per share fell from 28.8 cents (restated) or 3.3 cents (pre-transition) to 3.1 cents per share over equivalent halves. InvoCare did not declare an interim dividend.

The context: The AASB 17 standard applies to InvoCare's accounting for pre-paid contracts, and while it didn't affect business cashflows, it did impact the timing and recognition of income. InvoCare has entered into a scheme implementation deed with TPG Capital, with the private equity firm shareholder set to buy-out all remaining InvoCare equity for $12.70 per share. InvoCare shareholders will vote on the proposal in October.