Q Technology forecasts lower ebit, higher revenue

Security technology developer Q Technology (ASX:QTG) expects its 1H ebit to decline by around 50 per cent due to M&A costs, but said its revenue likely grew 66 per cent over the same period

Security technology developer Q Technology Group (ASX:QTG) has revealed it expects its 1H ebit to decline by roughly 50 per cent, as a result of one-off M&A costs.

The company is forecasting an ebit of $280,000 to $380,000 for the half-year, compared to an underlying ebit of $593,000 in 1H10.

This year's results were hit by integration costs and expenses of around $700,000 associated with the $14 million purchase of API Services and Solutions, and a one-off loss of $136,000 accrued though the disposal of former R&D business QRSciences Pty Ltd.

But the company said it expects revenue to grow to around $17 million, from $10.2 million in the previous corresponding period.

It added that it had fully expensed the API acquisition during the half-year, and that the revenue and ebit estimations include only three months' of trading from the unit.

Q Technology, which was named QRSciences before the sale of QRSciences Pty Ltd, offers video monitoring solutions including CCTV, networking and video switching through subsidiary Q Technology.

It also provides locksmith services through API Services and Solutions.

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