Empired experiences disappointing first half FY16

Empired experiences disappointing first half FY16

Net profit $3.7 million in the red and EBITDA down to $900,000 due to integration costs

Empired MD, Russell Baskerville

Empired MD, Russell Baskerville

Empired’s (ASX:EPD) net profit has plunged $3.7 million into the red in the first half of FY16 ending December 31.

A $2.3 million one off, non-cash fixed assets write off also impacted results and EBITDA was down to $900,000 from $3.9 million and revenue was $79 million up from $50 million at the same time last year.

The company said EBITDA was impacted by the transition of the Australian sales organisation into a single integrated portfolio sales team resulting in a lag to sales orders, which impacted utilisation across the east coast.

CAPEX includes one-off $4.6 million relating to office relocation.

“While we’re disappointed with the first half trading results, they are largely a result of integration related activities,” Empired managing director, Russell Baskerville, said. “We thank you for your support through this challenging period and look forward to delivering a strong second half result.”

Despite this, the company is confident in delivering a strong second half trading performance in revenue, EBITDA and operating cash flow.

The company expects strong growth in revenue from multi-year contracts in the second half following $32 million of strategic contracts secured in the first half.

It also revealed it was developing in-house Cloud-based software as a service IP (Cohesion) and Cloud platform services that will help generate new annuity revenue streams.

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