A significant reduction in hardware spend in Tasmania has caused Australian IT company Anittel (ASX:AYG) to suffer a net profit after tax loss of $13.46 million for the six months ended 31 December 2010.
In a statement to the ASX, the company, formerly known as Hostech Limited, noted the loss included a $10.85 million impairment write down of goodwill and a redundancy provision of $500,000, recorded in December 2010.
“During the six months to 31 December 2010, the consolidated entity experienced a reduction in hardware sales,” the ASX statement read. “The primary market driving this decline was Tasmania, where the economy was in recession.”
As a result, the company has reduced staff headcount by 10 per cent in December in order to produce savings of $2.4 million annually. The number of board members has also been reduced from seven to four.
Earnings before interest, tax, depreciation and amortisation (EBITDA) also fell for the half year period, posting a loss of some $937,438.
“As a result of the first half issues, the board and management are in the process of regearing the business to capitalise on its organic growth strategies,” the statement reads. “As this transition continues, revenues will be less susceptible to regional or seasonal fluctuations and margins will continue to improve.”
Revenue from ordinary activities for the half year period was reported at $31.67 million, a jump of 123 per cent.
Throughout the period, the company has also sought to strengthen its growth in regional Australia with the acquisitions of D2K Townsville’s customers for $51, 000 and $10,000 worth of Anittel shares, and also Albury based IT company Netrics for $125,000.
As reported by <i>Computerworld Australia</i>, the new acquisition joins the likes of 5 Star Telecommunications, Officelink Plus, Anittel Pty Limited, Accord technologies, Axxis Technologies and Aspirence, all acquired by the company for a total $9.1 million between January and April last year as part of an aggressive acquisition plan which executive chairman, Peter Kazacos, told shareholders would help the company expand further into regional Australia.
The results weren’t quite in line with the company’s forecasted earnings in December, which noted an expected EBITDA loss of just $300,000, and net losses of $800,000.
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