ASX-listed services provider, Allied Technologies Group, has scooted back into the black, announcing net profits of $380,527 for the year to June 30. The result is more than $6 million better than the previous year's $5.84 million loss.
Full-year sales, including discontinued operations, fell by $2.6 million to $31.5 million. Executive chairman and managing director, Michael Addison, said revenues across ongoing operations increased by 32 per cent to $11.9 million.
By contrast, Allied's cabling division, which was acquired by KLM Group in July, experienced a significant pre-tax loss of nearly $1.51 million for the full year. The business was sold for $2.25 million.
Allied also received a cash injection from its $9.5 million sale of TUSC Systems to Ericsson in November. Addison said the business was now in a better position.
"We have really rebuilt the balance sheet during the past year after the significant losses we sustained in the prior year," he said. "It's been an intense 12 months, but I think we've now got the business back into good shape."
Allied was now awaiting approval to lodge its merger bid with Longreach through the courts. The pair announced plans to join forces in June. If approved, the deal will see Longreach gain a 57 per cent stake in Allied.
"Longreach is the next step in our strategy and from there we will build progressively," Addison said.