NexBis flags $16m loss

$4.5 million hit on Malaysian NexCode project, accounting adjustments largely responsible

NextBis (ASX:NBS) has flagged it will likely make a net loss after tax for the half year to 31 December 2009 of up to $16 million despite improving its cash position by $9.55 million since 30 June 2009.

The transaction and interaction applications developer said in an ASX statement that a combination of a $6.6m non-cash accounting adjustment, $0.6m in foreign exchange loses, and $4.5m related to “impairment of receivables” for its Malaysian NexCode project were largely responsible for the result.

The NexCode project, announced in June 2008, is aimed at allowing the Malaysian Government to boost inter-department and inter-government collaboration, assisting its fight against internal and transnational crime.

“The Board remains confident in the resumption of its Malaysian NexCode project. Ongoing discussions with the Government have been very constructive and the Company is working towards a recommencement of the project,” the ASX statement reads.

“However, in the interests of adopting a conservative approach, the board has decided to record and impairment against the $4.5m in receivable relating to the project as there is not yet sufficient certainty surrounding a recommencement date and payment in full of outstanding amounts. The impairment will be reversed if a positive conclusion is reached prior to the signing of the accounts.”

Despite the loss, NexBis CEO Johann Young said the company anticipated a good rebound in 2010 with ongoing future growth as NexBis’s long term transformation project advanced.

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Tags Malaysiaapplications developerNexBis

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