ASX listed IT consultancy SMS Management and Technology has reported a net loss after tax of $7.7 million for the six months to December 31, 2002, part of a $11 million loss for the full 2002 fiscal year.
While the local operations of the group’s consulting business (SMS Australia) contributed positive results for both the half year and full year results, its overseas operations (SMS International) and now-discontinued application development business (METHOD) failed to achieve profitability.
The company has been engaged in a review of its operations, discontinuing its METHOD development business and absorbing its key staff into the core business. The SMS board also decided to write off remaining goodwill in METHOD to the tune of $4.4 million.
In an effort to turn the group’s fortunes around, the company has appointed new management to head the overseas operations of SMS (London), will continue to allocate resources to those businesses that are performing, and focus its consulting efforts around markets that are spending such as defence, utilities and Government.