KEY POINTS:
Dental software company Software of Excellence International (SOEI) has announced its first dividend payment since listing.
The company today said it made a $2.28m net profit for the six months to September 30, exceeding the previous guidance of between $1.8 m and $2m.
The result compared with a loss of $176,000 in the first half of the March 2006 year. Revenue for the period was 32.1 per cent higher at $14.84m.
Directors had elected to declare an interim fully imputed dividend of 50 per cent of the net profit after tax being $1.14m or 4.38 cents per share, SOEI said.
Record revenues had been earned from the company's core Professional dental software business, particularly in Britain, which accounted for 78 per cent of total turnover.
Sales in the British market were partially driven by the British Government's Options for Change health IT programme.
In local currency terms sales in the British market were 20.4 per cent higher at £4.01m.
A weakening of the New Zealand dollar against the British pound compared to the same period last year also contributed to the gain by adding $1.34m to revenue and $557,000 in ebitda (earnings before interest, tax, depreciation and amortisation).
The company's Asia Pacific business improved, with Australian sales rising on the back of the acquisition of the Oasis Software business in Australia in December.
The acquisition had continued to exceed the earnings milestones established at the time of its acquisition. Sales of the company's Exact software in Australia had shown gains following the purchase of Oasis.
The company's US dental schools business GSD Inc had continued to stabilise, following the management buy in in the latter part of calendar 2005.
During the half year the company outsold its main competitor on the British market in a ratio of 2 to 1, according to Dental Practice Board statistics for the period, SOEI said.
In October, chief executive officer Brian Weatherly and chief financial officer Bryce Donnell transferred to Britain, placing them closer to the company's main market.
They were also charged with investigating opportunities for taking the company's Professional business model into other markets.
The company used the annual Dental Showcase in London last month as the launching platform for the sale of a range of digital imaging products under licence.
The Australian business provided 10 per cent of total revenue in the latest six months against 6 per cent in the previous first half.
Mr Weatherly said the company's strategic growth was based on becoming the market leader in its chosen sectors, building on the market leading positions established in Britain, Ireland, New Zealand and Australia.
"This maiden dividend is a milestone in the development of the company. We now have a clear focus, dependable cash flows and are addressing a range of growth opportunities."
SOEI shares were up 21c in morning trade today to $2.01, having previously ranged between 85c and $1.80 in the past year.
- NZPA
