Hyro claws back to black after $12m debt write off

Digital services company reports first half operating profit of $840,000

After posting a full year $4.6 million operating loss in 2010, digital services company Hyro (ASX:HYO) has reported a first half profit of $840,000 due to debt consolidation.

Chief executive officer, Bill Votsaris, said in a statement that Hyro made the right decision to eradicate $12 million of historical debt, which included debt of $3.46 million owed to the Australian Taxation Office (ATO), resulting in a "cleansed balance sheet and no long-term debt”.

The company also recorded earnings before interest tax depreciation and amortisation (EBITDA) of $813,000.

Hyro recently signed a $4 million agreement with wagering company, Agility Interactive, to develop components for its next generation of online offerings.

It has also won a number of state and federal government contracts, including one to supply identity and access management software to Ultranet, the Victorian Department of Education’s $60 million online learning system.

According to Votsaris, the company invested over $10 million developing the Idaptive software, which allows organisations to identify, authenticate and manage online users.

Hyro's shares have gone from -$4.65 per share last year to 15 cents as of 30 August.

Follow Hamish Barwick on Twitter: @HamishBarwick

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