Strathmore’s $1.4M Profit In Line With Expectation
FOR IMMEDIATE RELEASE
Strathmore’s $1.4 Million Half Year Profit In Line With Expectations
Shareholders’ Funds Now Stand at $19 Million
AUCKLAND, Friday, 14 April, 2000 – Strathmore Group Ltd (NZSE: SMR) has announced a consolidated profit of $1.4 million on a gross turnover of $1.9 million for the half year ended 31 January 2000. The result represents earnings of 2.3 cents per share compared with a loss of 6.9 cents per share in the previous corresponding half year.
According to Strathmore’s Executive Chairman Phil Norman, the result contains no real surprises. “While reporting a profit turnaround is satisfying, the important decisions for future value creation have largely been made since the end of the period. As a result we have now almost doubled our shareholders’ funds to $19 million and made four significant investments. The greater significance for shareholder value lies in understanding the dynamic transformation in the company’s business arising from these new investments rather than the half year report,” says Norman.
“Accounting conventions require the reporting of the one-off profit realised from the sale of our investment in Wellington Drive Technologies Limited, as well as the consolidated results from CommSoft Communications Limited which are presented as a 100 percent owned subsidiary,” continues Norman.
“Conversely, the substantial increase in shareholders’ funds reflects tremendous market confidence in the quality of both Strathmore’s investments and focussed management. The value in these investments grows through our ability to assist management to focus on growth enablers and to leverage our international networks in order for them to achieve accelerated growth in global markets. Identification of high growth and EBIT businesses, quality management, innovative technology and global prospects are the keys to our success; however they will not unlock any doors to profitability without operating excellence. We must continue to leverage Strathmore’s existing investment and management capabilities to grow sustainable capital appreciation from our investee companies for all our shareholders.”
Other details announced in the Strathmore result included total assets with a book value of $17.7 million while liabilities were $7.2 million. The capital raising of just under $8 million in early March was reported, but not booked in the results.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 million of shareholders’ funds. It targets Internet, e-Commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets. It provides strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group
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