ASX ask Powerlan to report

ASX ask Powerlan to report

Troubled software provider Powerlan’s recent cash flow problems were due to “extraordinary payments made in relation to divested business and legacy debts”, according to a statement by the company to the Australian Stock Exchange (ASX).

The announcement comes one month after the sale of two software divisions by the company. The ASX asked the company to report on negative cash flow problems, following Powerlan’s monthly report.

For the quarter ending January 31, 2003, the ASX noted that Powerlan had net negative operating cash flows of $3,121,000.

The statement also noted that “the company does expect to produce negative operating cash flows from time-to-time. However, the business is profitable, excluding the extraordinary payments, and it is anticipated these profits, the receipt of monies still owed to Powerlan from the sale of non-core businesses and, if required, the chairman’s loan facility will enable the business to continue operating and build on the recent sales successes.”

In the next 30 to 40 days, the company expects to receive $4.25 million worth of fee payments for licences, in addition to the regular income stream generated by consulting and implementation fees.

Powerlan’s share price on March 3, 2003 was $0.03. Its 52-week high was $0.33.

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