Freshtel narrows 1H loss to $226k

Erstwhile VoIP provider Freshtel (ASX:FRE) said it cut its losses to $226k in 1H11, as it wound down its existing operations via a lease-off

VoIP provider Freshtel (ASX:FRE) narrowed its 1H loss to just $226,000, as the company wound down its current operations.

The result compares to a loss in 1H10 of $1.7 million.

But revenue fell 81 per cent to $136,000, due to the winding down of volumes from its VoIP business, which it agreed in 2010 to lease to Vixtel for 12 months.

The decision to rent off these operations for $2500 per month was made in order to shield the company from further losses accrued by the business and give directors time to explore new investment opportunities, Freshtel said in its interim report.

Revenue was also impacted by the sale of the company's UK business in May 2010.

The company had a net asset position of $451,328 at the end of the half year, which when compared to its losses for the period may cast doubt on its ability to continue as a going concern, auditor BDO said in its report on the results.

FRE shares stayed flat on Friday at $0.003.

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