ASX-listed JCurve Solutions has posted a net profit loss of $5.6 million and EBITDA loss of $6 million for the 2015 financial year ending June 30.
Revenue also fell three per cent down to $11.3 million.
In a letter to shareholders, JCurve Chairman, Bruce Hatchman, expressed his disappointment with the results but said there had been significant activity and change within JCurve in the past eight months.
The Board conducted a detailed review and strategic plan for the business, which resulted in an overhaul of its internal systems and procedures. This involved a realignment of senior corporate roles; continual structural improvements and rationalisation to bring together the teams from its JTel and Full Circle business; and working on a strategic direction for its JCurve division, which will be presented to shareholders at the Annual General Meeting.
The major impact on the financial results was the assessment by the Board to write down $5.1 million.
Stratatel bought JCurve Business Software and Full Circle Group in 2014, and re-branded itself as JCurve Solutions.
The company stated that both acquisitions haven’t produced “the desired returns to date, which resulted in significant impairment charges.”
The company is also conducting a review of its telecommunications expense management (TEMS) area, which also incorporates a review of the former Stratatel business (JTel).
It made redundancies in that area on the back of a South African telco contract loss, which impacted revenues, and launched two new products in February – MaaS360 and Wandera, but has seen minimal returns on the products to date.Read more: Stephen Canning crowned new JCurve CEO
“With reviews of both JCurve and TEMS businesses nearing completion, the company approaches 2016 with optimism and anticipates improved revenue performance on a normalised basis,” the company said.