ComputerCorp profits in the red
- 31 August, 2009 12:11
ASX-listed integrator, ComputerCorp, has flagged a slight drop in revenue and net losses in its full-year results.
The services integrator, which is currently attempting to finalise a merger with Victoria-based player, S Central, reported revenue of $145.1 million for the year to June 30, down 4.4 per cent year-on-year. The company blamed the global financial crisis, along with reduced Federal Government spending the latter half of 2008, for the top-line reduction.
According to its ASX report, losses totalled $1.05m, compared to a $340,000 profit last year.
However, services revenue increased by 35 per cent over the same period following the acquisitions of Queensland-based education player, Coretech, 18 months ago, and Victorian education integrator, Paragon Systems, in December. The two have propelled ComputerCorp’s education business to more than 25 per cent of its total revenues, it stated.
Gross margin also increased from 17.4 per cent to 19 per cent, due to services revenue, or 18.3 per cent excluding Synergy Plus’ $1.2m in net profit. Operating expenses increased $3m to $25.2m following increased salary, marketing and property costs from acquisitions.
“With the return to profitability in the second half of the year coupled with the acquisition of Synergy Plus, the board is of the view that positive progress has been realised in position the Group for future growth,” ComputerCorp said in its financial statement.
In the meantime, the company has again extended its share rights issue to September 11 in a bid to raise $4.2m. The funds are part of a $10.5m capital raising scheme announced as part of its merger with S Central.