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| Subject: No more write-down shocks, says ERG chief | |
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Author: March 16, 2004 |
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Date Posted: Thursday, March 18, 09:30:09am In reply to: Newspapers reporting result--March 7 2003 SMH 's message, "Noteholders have tickets to ride" on Thursday, March 06, 08:38:56am No more write-down shocks, says ERG chief By Ian Porter March 16, 2004 Print this article Email to a friend The new head of smartcard and fare collection company ERG has said there will be no more nasty surprises and that he expects a return to profit in 18 months. The company shocked investors late last month when it revealed asset write-downs and provisions within months of a massive capital reconstruction and share issue. "We don't expect any further write-downs in the second half," ERG chief executive Allan Sullivan said yesterday. ". . . If there was something else, we'd have dealt with it in the first half." He said the supply and installation, and operations and maintenance sides of the business had both made profits in the first half before significant items pushed the group to an overall loss of $43.2 million. It has been a focus to build income from operations and maintenance. Mr Sullivan said directors expected recurring income in this division to exceed $200 million a year once contracts in Seattle, Sydney, San Francisco and Washington were completed. He said that, while ERG would not make a profit this financial year, next year's outlook was different. "We think we have the base to work from to achieve a positive result in 2005," he said. "We expect to produce a positive EBIT (earnings before interest and tax), net profit and operating cash flow in the 2005 financial year." advertisement advertisement Mr Sullivan said this year's earnings would be boosted if the Lazio region contract was started in the current six months. Originally part of a two-part contract centred on Rome, the Lazio contract was delayed by elections that resulted in a new party taking office in the region surrounding Rome. The writer owns ERG shares. Print this article Email to a friend Top Search all Fairfax archives (*Fee for full article) Advertisement ING DIRECT ING DIRECT has made savings easy. Earn a high 5.00% variable interest rate. No bank fees ever. Open a Savings Maximiser and receive a $15 bonus deposit! Click here > [ Next Thread | Previous Thread | Next Message | Previous Message ] |
| Subject | Author | Date |
| Saville a winner in Glasgow airport deal 19 March 2004 Triple Witch | Mr Saville owns 27 per cent of ERG through his Ingot group. | Thursday, March 18, 09:39:14am |