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View All NewsAustralia – CML Group’s revenue boosted by non-recruitment division
Australian finance, payroll, and employment solutions provider CML Group (CGR: ASX) today reported revenue for the year ending 30 June 2015 of AUD 162.2 million (USD 115.5 million), an increase of 16% compared with AUD 139.4 million (USD 99.3 million) the previous year.
FY 2015 | FY 2014 | Change | |
Revenue | AUD 162.2 million | AUD 139.4 million | +16.0% |
USD 115.5 million | USD 99.3 million | ||
Underlying EBITDA | AUD 2.7 million | AUD 2.4 million | +13.0% |
USD 1.9 million | USD 1.7 million | ||
Net Profit After Tax | AUD 20,000 | AUD 1.1 million | -98.0% |
USD 14,242 | USD 783,321 |
According to a trading update published earlier this month, the company expected underlying EBITDA to decrease by 7% to AUD 2.3 million (USD 1.6 million).
According to CML Group’s finance report, FY 2015 was a mixed year, during which the company achieved major funding and loan-book growth milestones, strengthened its board and management, but incurred a number of costs associated with the group’s rapid expansion that have impacted earnings.
CML Group delivers finance, payroll, and employment solutions and breaks down revenue into two segments; Finance and Payroll & Other. Revenue during 2015 was as follows:
FY 2015 | FY 2014 | Change | |
Finance | AUD 80.7 million | AUD 64.6 million | +25.0% |
USD 57.5 million | USD 46.0 million | ||
Payroll & Other | AUD 81.5 million | AUD 74.7 million | +9.0% |
USD 58.0 million | USD 53.2 million |
The Payroll & Other division provides managed services to client; including labour sourcing through recruitment agency panel management, project management, and a migration practice.
The company’s Finance division undertakes factoring, through which the company provides an advance payment of up to 80% of a client’s invoice to help businesses overcome cash pressures. In May 2015 CML Group acquired Cash Finance Australia (CFA) for AUD 3.5 million (USD 2.5 million).
CML Group now generates the majority of its new business from its finance service offering.
In trading today, the company’s share price closed up 3.9% at AUD 0.14 (USD 0.10), a decrease of 35.2% compared with a year ago. Based on its current share price, the company has a market value of AUD 12.7 million (USD 9.0 million).