ICSGlobal decimates loss after turnaround drive

IT consulting and e-business firm ICSGlobal (ASX:ICS) is reaping the benefits of its turnaround efforts, having very nearly achieved a profit in the first half

IT consulting and e-business company ICSGlobal (ASX:ICS) said it had shrunk its 1H loss to just $6000 on revenue growth and turnaround efforts.

The company grew revenue 49.3 per cent to nearly $566,000, and slashed its operating cost outflow to just $88,000, from $1 million in 1H10.

After adjusting for a one-off non-recurring expense and the finalisation of last year's business sales, the company recorded a net profit of $46,000 and positive cash flow of $23,000.

ICSGlobal, which reported a $565,000 net loss in 1H10, has been embarking on a business turnaround.

In a statement, the company said that now that it had achieved this, the board will be able to “dedicate more time to the evaluation of a number of opportunities to find a suitable business for ICSGlobal to restore shareholder value.”

The company said it currently has no full-time employees in Australia and the directors are on half their fee entitlements, as part of its low-cost model for its Australian operations.

ICSGlobal's UK operations increased revenue 84.2 per cent to £521,000 ($834,000) and profit 179.2 per cent to £134,000. In Australian dollar terms, revenue grew 53.1 per cent and profit 132.6 per cent.

ICS shares fell five per cent on Tuesday to $0.019.

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