eBusiness Systems floats from QLD flood impact

The QLD floods took a 51% bite out of eBusiness Systems' (NSX:EBS) earnings in FY11, but results from the last six months indicate a solid recovery

The impact of the Queensland floods on earnings at eBusiness Systems (NSX:EBS) appears to have dissipated.

In the company's annual report, published today, chairman Geoff Marshall revealed that the company earned a net profit before tax of $650,000 during the six months ending in September.

This compares to a post-tax profit of just $111,000 in FY11 — a decline of 51 per cent from the prior year as a direct result of the floods in late December and early January.

eBusiness Systems' main trading entity, business technology management and consulting company Corpnet, swung to a slim pre-tax loss for the year. The company had been anticipating $800,000 in pre-tax profit before the floods hit.

As a result of the disaster, sales fell over 73 per cent in January, and 47 per cent in February, as against the company's forecasts.

But in Q4, Corpnet reported a pre-tax profit of around $457,000, as it began processing the resulting order backlog. The effects of the backlog dissipated somewhat in first quarter of FY12, with Corpnet earning pre-tax profit of $188,000.

EBS' NSX-listed shares last traded at $0.200.

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 businessQueensland floodseBusiness Systems

Show Comments