Spectrum Resources - Half Year Operating Surplus
Spectrum Resources Announces Half Year Operating Surplus
Editors Summary * Spectrum Resources reports half year operating surplus before tax and amortisation of $422,000 * Surplus is driven by WEL Technology achieving forecast level of performance * Investment in export growth will continue but may take time to deliver returns to shareholders * Board is continuing assessment of suitable acquisitions
Auckland, Thursday 1 March 2001 - Spectrum Resources (NZSE: SPE) today announced an operating surplus before taxation and amortisation of $422,000 for the first six months of the financial year. The surplus was driven by the activities of Spectrum's wholly-owned subsidiary, WEL Technology, which achieved its forecast level of performance. The Group's consolidated balance sheet has also significantly strengthened over the six month period.
The positive results were accompanied by investment in the Spectrum team and new premises for the organisation, with adequate capacity for growth as additional acquisitions are made and staff join the Group.
"The fact that we are able to report a surplus is encouraging and reinforces the value of the business model we have adopted," says Spectrum Resources Executive Director, Rob Levison. "WEL Technology has a strong product with global potential. We're seeing that potential come to fruition as it focuses on an export drive, generating good returns and delivering the benefits of foreign currency earnings.
"Spectrum will continue to invest in this export growth. However, the complex and lengthy nature of the sales process means that it may take time to deliver returns to shareholders," he said.
Over the past six months, WEL Technology has secured its first US contract, with Iowa-based MidAmerican Energy, as well as appointing three senior business development managers to service the US and Australian markets. The company has also strengthened its software development team in New Zealand.
Levison said Spectrum Resources continues to seek acquisition opportunities that can deliver real value to shareholders, while also focusing on expanding earnings derived from existing assets.
About Spectrum Resources Ltd Spectrum Resources is a company dedicated to investing in the E-commerce area with particular emphasis on vertical market software. It is a late stage investor that takes majority or control positions in investee companies, adding financial, marketing and management expertise. Spectrum is strongly committed to the development of New Zealand companies and believes in the global potential of the intellectual capital in this country. For more information, please visit www.spectrumnz.com.
WEL Technology Limited is a software development company specialising in complex billing solutions and mission critical software. Its flagship product is its complex Contract Management and Billing Software PV2 (www.PV2.com). WEL continues to make sales of PV2, under the brand name Settlement One, to Canadian utilities and is also seeing strong interest in the software from North American and Australian utilities.