BEACON LIGHTING GROUP LIMITED — Earnings Release 2015

Aug 19, 2015

==> picture [452 x 57] intentionally omitted <==

Results Announcement

20[th] August 2015

FY2015: Record Sales and Profit Result

Result Summary

• Sales up 19.3% to $179.4m

• Comparative company store sales up 10.4%

• Gross profit dollars increased by 20.1%

• Operating expenses fell as a percentage of sales by 3.0%.

• EBITDA up 36.4% to $27.4m

• NPAT up 43.6% to $16.9m

$’000	FY2014	FY2015	Change $	Change %
Sales	150,338	179,386	29,048	19.3%
Gross Profit	96,660	116,041	19,381	20.1%
Operating Expenses(1)	(82,095)	(92,595)	(10,500)	12.8%
EBITDA	20,086	27,395	7,509	36.4%
Net Profit After Tax	11,797	16,939	5,142	43.6%

(1) Operating expenses exclude depreciation, amortisation and financing costs.

Result Commentary

Beacon Lighting Group Limited (the “Group”) (ASX:BLX) today announced a Net Profit After Tax (NPAT) result of $16.9m for the 52 weeks ending 28[th] June 2015. This was an increase of $5.1m or 43.6% over the 52 weeks ending 29[th] June 2014. The NPAT increase was the result of very strong sales, solid gross profit dollar increases and operating expense productivity gains.

Sales increased by 19.3% to $179.4m. Company stores comparative sales was the most significant contributor to the sales increase with a 10.4% growth over FY2014. Sales increases for the Commercial, International and Solar businesses along with new store openings were also contributors to the overall sales increase.

The gross profit dollars increased by 20.1% with a gross profit margin of 64.7%. The solid gross profit result was due to innovative new product releases, price management, stock management and the improved in store stock position. Supported by the strong sales result, productivity gains were realised across all operating expense types with operating expenses as a percentage of sales falling by 3.0%.

==> picture [563 x 82] intentionally omitted <==

==> picture [452 x 57] intentionally omitted <==

The Group has continued to reinvest in the business with new stores and major refurbishments and has made an increased investment in inventory which has been partly funded by borrowings. The Group continues to maintain a conservative Balance Sheet. The Group paid a fully franked interim dividend of 1.8 cents per share for H1 FY2015. The Directors have also declared a fully franked final dividend of 2.4 cents per share for H2 FY2015. This brings the annual fully franked dividend for FY2015 to 4.2 cents per share.

Stores Update

During FY2015, Beacon Lighting has opened seven new company stores at Mittagong (NSW), Coburg (VIC), Port Macquarie (NSW), Camberwell (VIC), Churchill (SA), Pakenham (VIC) and Ipswich (QLD). The Fountain Gate (VIC) franchise store was purchased and converted into a company operated store. The company store at Hawthorn (VIC) was closed down.

Outlook

The key growth strategies remain consistent for Beacon Lighting in FY2016. These include new store rollouts, optimising the existing store portfolio, supplying the latest fashion, trend and technology advanced products for our customers. The Group also aims to enhance our online activities, leverage existing capabilities, actively investigate acquisitions, support our emerging businesses and realise expense efficiency gains. Beacon Lighting is particularly looking forward to the opportunities associated with the GE Licence and Distribution Agreement and following the acquisition of the Essendon (VIC) and Watergardens (VIC) stores, their operation as company stores.

Beacon Lighting is looking forward to another successful year in FY2016.

==> picture [563 x 82] intentionally omitted <==