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| Subject: The Age, Australia - Mar 14, 2004 | |
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Author: March 15, 2004 - 4:05PM |
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Date Posted: Thursday, March 18, 09:42:26am ERG tipped for profitability in 04/05 March 15, 2004 - 4:05PM Print this article Email to a friend ERG tipped for profitability in 04/05 The Age, Australia - Mar 14, 2004 Smartcard technology company ERG Ltd should return to profitability in the 2005 financial year, chief executive Allan Sullivan says. ... Smartcard technology company ERG Ltd should return to profitability in the 2005 financial year, chief executive Allan Sullivan says. "We think we have the base to work from to achieve a positive result in 2005," Mr Sullivan said in an open briefing with corporatefile.com.au. "We expect to produce a positive EBIT, net profit and operating cash flow in the 2005 financial year." ERG has suffered a difficult two years, and just last month reported an interim net loss of $43.03 million, including one-off write downs and provisions of $36.2 million. "Given the write-downs and provisions in the half-year result, we don't expect a net profit for 2004," Mr Sullivan said. But he said he did not expect further writedowns in the second half. Mr Sullivan, who only joined ERG in January, said his first priority was to return the company to profitability. "As a first step, it's critical we deliver our current major projects on time and budget," he said. "I'm very focused on our project management and delivery processes, and believe we can make improvements in this area. advertisement advertisement "We frequently face slippage in the delivery timeframe for various reasons. "To make good margins, it's important to be on time or ahead of time." Mr Sullivan said there was also room to take more overhead costs out of the business. During 2003, ERG addressed its problems with writedowns, contract delays and depreciation with a capital restructure, a restructuring of a contract in Rome and the sale of subsidiary Proton World. Mr Sullivan said ERG now had a solid order book, with major projects underway in Sydney, Seattle, San Francisco, Washington DC and Stockholm. "Once all of our current projects are installed, our recurring revenues should reach an annual level exceeding $200 million," he said. ©2003 AAP Brought to you by [ Next Thread | Previous Thread | Next Message | Previous Message ] |