Greencross validates acquisition strategy with earnings, revenue growth expected 

(MENAFN - ProactiveInvestors - Australia) Greencross (ASX: GXL) expects to record underlying earnings of between 7.8 and 8.2 million for the half year ended 31 December 2012, reflecting the success of its vet acquisition strategy.

This is up 32.1% to 38.8% over the earnings before interest, taxes, depreciation and amortisation of 5.9 million that it made in the half year ended 31 December 2011.

Revenues are expected to be up between 31.8% and 34.4% to between 52 and 53 million from the 39.4 million in the previous corresponding period.

Underlying net profit after tax is also expected to be up by up to 37% to 3.6 million, though the company noted that it may report a net profit of between 1.2 and 1.5 million due to its auditor disputing the accounting treatment of eight deferred purchase payments.

Greencross noted the one-off accounting adjustment did not affect underlying earnings or its ability to distribute 50% of underlying earnings in dividends to shareholders.

It also confirmed there is no impact on its funding arrangements with its financiers, Commonwealth Bank, and that it would continue to make acquisitions.

The company expects to have cash on hand of 6.8 million at the end of the half year while the unutilised acquisition funding facility with CBA stands at 9.7 million.