FY2009 Full Year Results Announced

Released: 18 Aug 2009

Oakton today announced a full year net profit after tax of $14.3 million for the year ended June 2009

FY2009 Headlines

• Full year revenue of $193.6m, EBITDA of $24.5m, NPAT of $14.3m, EPS 15.9c. Includes:
• Project write downs of $4m in the first half of FY2009
• Full year redundancies and non-recurring overheads of $4m
• Final fully franked dividend of 1.50 cents, total dividend payout for the year of 2.25 cents
• Operating cash flow of $20.4m, with debt further reduced to $23m ($33m pcp) - strong focus on eliminating debt in FY2010
• Ended June 2009 with 1,157 staff (down 132 pcp). India at 110 resources (up 10 pcp)
• Entered FY2010 with committed revenue comparable to FY2009
• Continued improvement in existing client service line ratios and introduction of new clients
• Enhanced internal quality, project governance processes and core systems to reduce risk and improve project profitability

Australian consulting and I.T. services provider Oakton Limited [ASX: OKN] today announced a full year net profit after tax of $14.3 million for the year ended June 2009 – a 48.4% decrease on last year’s net profit result. Revenue decreased by 3.8% to $194 million and EBITDA decreased by 40.3% to $24.5 million during the period.

The Oakton Board declared a fully-franked final dividend of 1.5 cents per share. The total dividend payout for the year is 2.25 cents. The dividend will be paid on the 1st October 2009 with a record date of the 18th September 2009.

Neil Wilson, Oakton’s Managing Director and CEO, made comment on the result, “ As reported in February 2009 our operations had been severely impacted by the global financial crisis which was further exacerbated by reduced levels of Federal Government IT demand. We also advised at that time, that the company was undertaking an extensive operational review to align the business to the changing market conditions.”

“As a result of the operational review, changes have been implemented, which have favourably impacted the second half results and in particular the last quarter where our key indicators have returned to levels of prior years. We continue to optimise the cost structures of the business and are confident of further margin improvement into FY2010. It is pleasing to report that we have built a strong level of committed revenue and a solid pipeline of potential revenue as we enter FY2010.”

The Board has maintained its prudence in relation to the dividend and continues to aggressively focus on debt reduction. Subject to any investment funding for acquisitions, we would expect to eliminate our debt by the end of FY2010. This, combined with our strong cash flow, will enable us to return to increased levels of dividends in future years.

I would like to take this opportunity to thank our outstanding team at Oakton for their contributions in what have been very difficult operating conditions. We have the best team to enable us to re-engage on our growth strategy in the future. I would also like to thank our clients, shareholders and the wider investment community for their ongoing support and interest in our company”

Oakton Chairman, Paul Holyoake, commented on the result saying “These have been challenging times but Oakton has shown its ability to meet these challenges. On behalf of the Oakton Board I would like to thank our clients, staff and shareholders for their efforts and continuing support. I also welcome Tony Larkin to the Board. He will add further strength and rigour to our governance and risk management processes.”

Oakton will hold its Annual General Meeting on Wednesday 7 October 2009 at 10am in its Melbourne Offices, Level 8, 271 Collins Street, Melbourne.

Further information:

Neil Wilson
Managing Director and CEO

John Phillips
Chief Financial Officer
Tel: +61 3 9617 0200

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