Just Life Group, New Zealand's largest supplier of water coolers and filters to businesses, produced an after-tax profit increase of 53 per cent for the year ended June 2020.
Despite Covid-19 resulting in reductions of revenue during the last quarter, profit before income tax rose to $3.9 million from $2.6m in 2019.
Underlying EBITDA (earnings before interest, tax, depreciation and amortisation) was 6.4m, up from $6.1m in 2019.
Non-operating and non-recurring items for the June 2020 year included the Covid-19 Government Wage Subsidy received of $0.9m and one-off restructuring costs incurred of $0.2m.
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Operating revenue fell 10 per cent from $33.5m in 2019 to $30.2m. Just Life Group said this was the result of a review of the total business. The review revealed trading areas of the business that were barely profitable, or unprofitable.
Free cash flow was up from $2.8m to $4.4m.
Just Life Group will pay a final dividend of 1.2 cents per share be declared for the current year. This brings the total dividend for the year to 2.2 cents per share.
Just Life Group chief executive and chair Tony Falkenstein said the result was pleasing given the unprecedented events that occurred during the last quarter.
"We have focused and invested in our brands as we transformed the organisation to build
resilience for the future.
"We are now in a position to take up acquisition and merger opportunities and intend to raise capital over the next 12 months to support these activities. Any acquisitions would be planned to be cash flow positive and support an ongoing dividend stream to the shareholders."
Just Life Group changed its name from Just Water International in March last year.