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Updated: Anittel loses $19.9 million

Updated: Anittel loses $19.9 million

Reseller plans to consolidate and refocus its operations during the next six to nine months

Anittel (ASX:AYG) has recorded a net profit loss of $19.9 million for the 2011 financial year ended June 30.

The loss has been put down to goodwill impairment charges of $16.1 million.

EBITDA loss amounted to $1.9 million, but revenue for the year was up $59.6 million, compared to the previous year’s $21.5 million. In August it warned the market of its expected loss.

Cash in bank was $2.6 million, up from $800,000 in the previous year.

"The goodwill is a non-cash position, so recovering from it is not a huge problem because most of the loss is non-cash," Anittel managing director, Peter Kazacos, said.

"We've got the cash to start to progress along the lines we've outlined."

The reseller has set out plans in the upcoming financial year to consolidate and refocus its operations during the next six to nine months. It is expecting only small revenue growth in FY12 and a turnaround of recent losses to a positive EBITDA outcome.

Throughout the consolidation period it will be focused on expanding its telecommunications services into regional Australia and SMBs.

"We believe we've got significant strength in the telco space. It's not that we're deserting IT, we're leading with telco and including IT," Kazacos said.

Anittel stated it had a competitive advantage due its ownership of its communications network, its carrier license, existing installed customer base and skilled staff.

It also intends to continue developing its product offerings in areas of integrated telecommunications and IT services, which includes ‘cloud’ services such as online backup, anti-spam, anti-virus and archiving.

In FY12, Kazacos hopes results will start weighing in on the positive side of the scale, as well as gain more brand recognition in the market and grow into a few more regions.

"We've identified the cities we want to be in," he said. "Growth will be achieved organically and through small acquisitions."

His message for shareholders and investors was that it is progressing through its journey in increasing its customer base and regional reach.

"Hopefully in the next 12 months they'll be able to see how we've fulfilled that," he said. "When negative, it's hard to see the positive, but hopefully they'll see the trend go the right way."

Anittel operates in 16 locations across the country, and said it sees further opportunity to provide efficient telecommunications and IT services across 30 other regional areas.

During the past year, the company has made board and senior management changes and constantly reviewed and refined its strategy.

Anittel was trading at $0.006 at the time of publication.


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