Updated: Synergy revenues and profits up
- 19 February, 2010 08:56
- Comments 4
ASX-listed integrator, Synergy Plus, has reported a 3 per cent increase in revenue in the first-half to December 31, 2009.
The company chalked up $76.8 million over the six-month period, up $2.3m year-on-year. Gross profits were also strong at $2.8m, compared to $100,000 in the previous corresponding half. The pre-tax result is also well up on Synergy’s forecasted figure of $1.5m-$1.6m, announced last month.
Net profit came in at $824,000, a massive contrast to its $753,000 loss in the corresponding half.
The results come off a massive six months for Synergy, which saw it acquire the business assets of rival player, Leading Solutions, from the company’s voluntary administrators in November. The deal was officially settled on February 8. Synergy also rebranded from ComputerCorp, six months after acquiring the IBM specialist business from Hyro for $9.3m.
According to its financial statement, the sales result included combined Synergy/Leading Solutions revenue from November 16. Alongside Leading’s contribution, the company also highlighted a 23.1 per cent increase in services revenue, as well as strong enterprise datacentre solution sales, as key contributors.
Acting CEO, Pete Cappendell, was pleased with the results and said they highlighted the company’s strong turnaround.
“We have a lot to do – we’re only a few months into the transformation of our business, but it’s a good start,” he told ARN. “The focus we have had is on integration with the old Synergy business, which was largely based on leveraging its enterprise datacentre business across the country.
“We’re focused on improving the services mix.”
The financial statement also revealed an increase in expenses over the six-months period to $15.6m, including a $184,000 one-off charge following its aborted acquisition of S Central, announced in April and abandoned in September. The Leading acquisition, which was valued at $3.9m, also cost Synergy $180,000, while relocation of its Perth and Sydney offices cost $200,000.
Synergy’s non-current liabilities were also up $8m to $50.4m, while its current liabilities were valued at $22.1m. Its share rights issue last year, meanwhile, raised $3.44m. Synergy originally announced plans to raise $4.2m in capital to help fund its acquisitions of Synergy and S Central.
Come socialise with us! Facebook | LinkedIn
- Bookmark this page
- Share this article
- Got more on this story? Email ARN
- Follow ARN on twitter
-
REVIEW: Is the Samsung Galaxy Tab 10.1 the new king of Android tablets?
-
MySpace: The next hot social network?
-
Datacom joins AFP, Microsoft and ninemsn to support ThinkUKnow
-
Lenovo awarded NSW DET netbook contract
-
Telstra-NBN Co wholesale broadband agreement “imminent”
Get exclusive access to ARN's news, research and invitation only events. 
Comments
Anonymous
Am i reading this right? Synergy only paid $180k for Leading Solutions but got over $3.9mill value. No wonder staffs still haven’t gotten any of their redundancy.
If that’s all they paid then that is just wrong. In outstanding orders there was more that in profit alone.
ticked off former leading employee
they did only pay peanuts for LS which is rather pathetic, but that's the way the CC runs (look at past aquisitions, you'd find they wait until the company is just about gone and then they get snapped up for next to nothing)
Maybe they should give some of what they saved in the sale over to the the administrators and pay what we Leading people are still waiting for the rest of our entitlements (we generously received a fraction of what is owed to us about 4 days out from christmas). After all we supposedly are priority creditors in all of this.
Comon
I'm confused to how Synergy are to blame for the acquistion cost when it's more likely thats what the adminstrators valued the shell of Leading at??
Perhaps thats why they call it "Bargin Enterprising" ...
Almost Financially Literate
The reality is that Leading was worth very little after it collapsed, otherwise plenty of other "suitors" would have snapped it up! Anybody was free to make a bid for it. Synergy was the only one brave enough to try and salvage anything, so I cannot understand why ex-Leading employees continually knock them. Most likely scenario is that Leading Solutions' former CEO and board of directors were responsible for it's collapse, so direct your anger and frustration to them.
And, if you read the announcement properly, it said Synergy's COSTS were $180K. That is the cost it incurred to do the deal, which is over and above the PURCHASE price paid for the assets, and would have included airfares and accommodation for Synergy's management to do due diligence, the legal fees, as well as time & effort spent negotiating with ex-Leading employees, etc.
In my opinion both Leading and, especially, S Central were worth very little anyway, or they wouldn't have been failed businesses.
Post new comment