Hyro hurting from half-year results

Hyro hurting from half-year results

$1.5 million loss, and revenue down 50 per cent

Hyro’s half-yearly results show a substantial loss, and continued taxation difficulties.

A release to the ASX paints a dire picture. Group revenue was down 50 per cent to $13,143,000, and net profit was down 135 per cent – a loss of $1,449,000.

The losses were attributed to a number of factors, including new software development, for which costs have been incurred and capitalised, without significant revenues expected until this product is fully commercialised.

The Group has also reinvigorated its sales team which is expected to result in higher levels of sales going forward.

Hyro also continues to struggle in fulfilling its tax requirements. According to a statement to the ASX, the Group incurred a small negative cash flow in the six month period ended 30 June, 2010, of $61,000.

As of June 30, 2010, the Group had available cash and other current assets of $10,616,000, and current liabilities of $18,847,000. This included leave entitlements and $11,433,000 under arrangement with the ATO.

Hyro entered into an agreement with the ATO in May 2009 to repay the debt, which at that time had accumulated to $9,535,000. The ATO agreed to waive interest charges and penalties up to June 30, 2009, amounting to $1,782,000 if the Group made repayments in line with this agreement.

The Group had not fully complied with the agreement, although the ATO will continue to forbear from enforcing the breaches and Hyro is consequently in compliance with the agreement.

In the ASX statement, the Hyro directors claim that although the Group doesn’t have the cash to repay the debt, the Group has sufficient current assets to meet its liabilities as and when they fall due.

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