IT exit rewards Cellnet with profit

IT exit rewards Cellnet with profit

Retail focus sees ASX-listed distributor forecast a $700,000 profit for the half year, a massive improvement on its $10.5 million loss from the same period last year

Six months on from a multi-million dollar net loss, ASX-listed distributor, Cellnet, is forecasting a return to profitability for the half year ending December 31, 2009.

In a release to the ASX, the distributor said it expected $700,000 total profit for the six-month period. In the same period last year, it lost $10.5 million including a $7.9m loss from discontinued operations, and $2.5m in write downs and provisions.

However, even taking into account those figures, the distributor lost $94,000 from operations in the half year ending December 2008, meaning a near-$800,000 turnaround this year.

Cellnet CEO, Stuart Smith, attributed the forecasted result to its exit from the IT distribution business.

“The clearer focus on the retail business, and the broadening of our product line in that field, has helped generate the results,” Smith said.

The expected profit is in line with Cellnet’s forecasted full-year activity, and market conditions are in line with expectations, he said.

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