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

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags businesshyro

More about Australian Taxation OfficeBillHyro

Show Comments