Telco networks provider Amcom has posted a 19 per cent increase in net profit to $12.1 million in the year to June 30 after being hit with $1.5 million in costs following the exit of its major shareholder.
The exit of agribusiness group Elders, the former 50.1 per cent shareholder, resulted in buy back and sell down costs after tax of $1.5 million.
If not for this signifcant item, the fibre network provider's profit would have increased by 35 per cent to $13.7 million, compared to the previous year's $10.1 million.
The group benfited from its 22.5 per cent stake in iiNet with an equity accounted contribution of $5.8 million against $4.4 million in the previous year.
And its earnings before interest, tax, depreciation and amortisation (EBITDA) grew 29 per cent to $18.4 million.
Amcom chief executive Clive Stein said the EBITDA margin improvement was pleasing, with margins expanding to 34 per cent for the year.
"We have a unique strategic position in the telecommunications market with our fibre networks," he said in a statement.
"The continuing demand for fibre networks, across a diverse range of businesses and government departments, to provide internet and IT solutions, has seen our business become an essential service provider."
Commenting on the outlook for Amcom, Mr Stein said he expects double digit earnings growth to continue for the year ahead and the company is looking to expand its coverage on the east coast while its net debt sits at $13.2 million.
Amcom will issue a fully franked final dividend of 5 cents per share, taking the full year dividend to 8 cents per share.
Amcom's shares climbed 0.5 cents, or 2.63 per cent, to 19.5 cents at AEST1615.
