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Inabox Group suffers $351,000 in losses after tax for FY15

Inabox Group suffers $351,000 in losses after tax for FY15

Claims business transformation is progressing to plan

Inabox Group suffers $351,000 in losses after tax for FY15

Inabox Group suffers $351,000 in losses after tax for FY15

Inabox Group (ASX: IAB) has reported, on the ASX, that the company is in loss of $351,000 (net profit after tax) for its financial year 2015, which ended June 30. This marks a negative change of 132 per cent from its $1.07 million profit in FY14.

Its EBITDA also took a fall of 22 per cent, from $2.4 million in FY14 to $1.9 million in FY15.

The results include the six months’ trading of the Anittel business (acquired on January 1, 2015).

In a statement, the company said EBITDA was down 22 per cent, largely as a result of the Anittel acquisition which posted (EBITDA) losses in the first four months of the second half of FY15, of about $0.55 million.

However, it also added that with its turnaround substantially completed, Anittel began generating positive EBITDA in May and June.

It added that the EBITDA was also negatively impacted by $0.66m of one-off transaction and restructuring costs relating to the Anittel acquisition.

“Inabox is pleased with the progress of all business units and the board has reaffirmed its previously announced EBITDA guidance for FY16 of at least $5 million. Overall profitability has been impacted by addition of Direct channel, but not as much as first anticipated,” it said in a statement.

“As part of the integration of Anittel, Inabox carried out a significant restructure in April, resulting in expected annualised cost savings of around $3 million.

“Around $1 million of these annual savings is being invested to support new sales and growth initiatives, including adding new sales staff. The integration and restructuring initiatives position Inabox well for substantial growth in FY16 and increased profitability,” it added.

For FY16, the company expects growth in Inabox’s three core businesses, combined with a net $2 million of annualised cost savings, to be at least $5 million in EBITDA for FY16. This is an increase of 160 per cent from FY15.

It claimed enablement will continue to be a key focus, with the NBN generating strong interest from large retail brands wishing to become NBN retail service providers.

“Inabox is well positioned to win and support large brands with its end-to-end offering and strong implementation and operations track-record. Enablement aims to grow the number of supported services to more than 80,000 by the end of FY16,” it said.

As for its indirect wholesale business, it will support growth in sales of next generation voice and data services and assist customers to acquire other retail service providers. Inabox will also seek to acquire businesses or customer bases of smaller wholesale competitors, many of whom it said are struggling to remain viable given their small scale.

In terms of its direct wholesale business, it said Anittel is well positioned to grow the HCS business, implement new sales initiatives and extract further labour productivity gains.

“The business can now grow organically by cross-selling bundled telecommunications, cloud and IT managed services. Anittel will also seek strategic acquisitions in regions where it has an existing presence but currently lacks scale,” it added.

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Tags InaboxASXAnittelfinancial resultslossesTelecommunications

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