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| Sunday, May 17, 03:13:44pm | [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, [3], 4, 5, 6, 7, 8, 9, 10 ] |
| Subject: Re: MarginsJuly 18 2003 SMH | |
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Author: ERG said it was not prepared to match such a low bid, stating that it was "committed to achieving a positive cash flow profile and return to shareholders". |
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Date Posted: Saturday, July 19, 03:34:14am In reply to: Analysts in the past have suspected that ERG pursued contracts without adequate margins to cover the cost of developing and tailoring technology. 's message, "Margins" on Saturday, July 19, 02:51:59am http://www.smh.com.au/articles/2003/07/17/1058035143639.html ERG loses $30m tender on its own turf By Colin Kruger July 18 2003 ERG shares tumbled yesterday as the company announced it had lost a $30 million tender to install a new smart card ticketing system for the bus, train and ferry services of its home town, Perth. The loss-making smart card vendor, which recently underwent a capital restructure to ensure its viability, shed 11 per cent of its market value, losing 13c to close at $1.03. The announcement came hot on the heels of a "please explain" notice from the Australian Stock Exchange on Wednesday following its recent share gains. The shares had rocketed from 84c on July 9 to $1.16 on Wednesday, when they resumed trading after the capital restructure and a consolidation on the basis of one new share in exchange for 10 existing ones. The company said it could offer no reason for the gains. advertisement advertisement The rally looked especially ill-founded after news that ERG had lost the bidding for the Transperth smart card ticketing system. The tender went to Downer EDI's Delairco Bartrol and UK transport ticketing provider Wayfarer in a 10-year deal valued at more than $30 million. Downer EDI is no stranger to the transport industry. The engineering company is behind Sydney's controversial Millennium train project, which last month was revealed to be $100 million over budget. WA's Planning and Infrastructure Minister, Alannah MacTiernan, said the winning bid was more than 30 per cent lower than its closest competitor. ERG said it was not prepared to match such a low bid, stating that it was "committed to achieving a positive cash flow profile and return to shareholders". The issue is important for the company, which has struggled with questions about its financial viability after reporting losses of $125 million for the first half ended December 31, 2002. Nevertheless, the Asia/Pacific head of ERG, Rob Noble, said it was "very disappointing not to be selected for the contract in Perth". ERG has been named as the reserve tenderer for the project. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Re: MarginsThe Downer syndicate was offering electronics and computer systems developed by Britain's Wayfarer."ERG is committed to achieving a positive cash flow profile and return for shareholders." - Rob Noble, ERG | July 18 2003Downer will provide a replacement smartcard package, sourced from Wayfarer, for existing machines on Perth's buses, trains and ferries. | Saturday, July 19, 03:43:55am |