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| Sunday, May 17, 07:43:44pm | [ 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: 27/02/04 By: Andrew NelsonERG Group (ERG) today announced its financial results for the six months ended 31 December 2003 with the group reporting a net loss after tax of $43.2 million, including one-off write-downs | |
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Author: and provisions totalling $36.2 million. |
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Date Posted: Tuesday, March 09, 07:35:37am In reply to: Newspapers reporting result--March 7 2003 SMH 's message, "Noteholders have tickets to ride" on Thursday, March 06, 08:38:56am ERG says profits maybe next year 27/02/04 By: Andrew Nelson ERG Group (ERG) today announced its financial results for the six months ended 31 December 2003 with the group reporting a net loss after tax of $43.2 million, including one-off write-downs and provisions totalling $36.2 million. The result compares with a net loss after tax of $124.9 million in the previous corresponding period. Both of the Group’s operating segments reported positive contributions. The Projects, Supply and Installation segment recorded $47.4 million in revenue with a contribution of $12.4 million before significant items. The Operation and Maintenance segment recorded revenue of $90.2 million with a contribution of $3.3 million including the effects of the sale of their Rome infrastructure. ERG’s Chief Executive Officer, Dr Allan Sullivan, said: that the financial results include the cost savings from the balance sheet restructuring work undertaken during 2003 which are somewhat off-set by the provisions and write-downs that were taken. “We are seeing the revenue starting to flow from the supply phase of our portfolio of major projects; however, they were in their early stages during this reporting period and the rate of revenue recognition is therefore still to grow.” “Importantly, we have kept a reign on costs in the interim period which has limited the level of our loss at an operating level. We have been able to further offset that operating loss with gains totalling $10.9 million from the early settlement of our American Express liabilities and the restructure of our Rome contract,” explained Dr Sullivan. The company advised that the board has accepted plans to reduce the cost base of the company and it will undertake further write-downs and provisions totalling $36.2 million in the current half. Dr Sulliavn informed that whilst these items have a negative impact on the bottom line number reported, they include provisions for restructuring that he believes will be necessary to deliver sustainable future profitability. The group advised that it has also experienced some delays in the commencement of major projects and would like to have been further progressed within the period. However, the group informed, projects in San Francisco, Seattle, Stockholm, Washington DC and, of course, Sydney have all now commenced. The fare collection specialist reported a positive operating result from the early stages of the build phase of these projects, which “is a solid foundation” from which to move forward, claims the company. Dr Sullivan further clarified that the net result we have reported is below where we would like it to be. “We have actions planned to turn that around as soon as possible, with a particular focus on reducing our overheads and cost of goods sold. “We must build on the balance sheet restructuring and commencement of new projects with an operating structure that will allow us to achieve solid profitability,” he concluded. At 1020 AEDT ERG were down 6c to 1.05. [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| February 28, 2004 | ERG still wading through red ink | Tuesday, March 09, 07:47:25am |