Advantage Group Announces Full Year Result
Advantage Group Limited today announced its full year result, citing the impact of weak global markets and the Group's subsequent requirement to meet changing market conditions.
Notwithstanding the downturn of the information technology sector, Advantage's operating performance this year is cash flow neutral after restructuring costs.
Following a detailed review of the business (initiated by the Board and continued by the company's new managing director, Tony Bradley), the Board has determined that there is no certainty of the carrying value of goodwill and therefore has decided to write off all goodwill assets totalling $60 million. This write off together with other unusual items results in a loss of $65.9 million for the year ended 30 June 2001.
In announcing these results managing director Tony Bradley says, "Technology stocks worldwide have been re-rated. Billion dollar losses posted recently by Lucent, Cisco and Nortel reflect the difficulties in the technology sector globally. In Australia, OneTel has gone into receivership and in New Zealand so has Telemedia. The market has changed and so has the environment in which we operated over the past year. Advantage has not been immune to these changes and we have responded."
Advantage has put in place a framework to meet the new market conditions. Its four operating companies (Payment Solutions, Retail Automation, Portable Technology & Enterprise Solutions) are autonomous business units which work together to deliver integrated solutions to customers. Consistent with this approach, the e-Services web development unit has been merged into a single Enterprise Solutions Group which designs, develops and integrates bespoke and package technologies.
Advantage has divested, what are now, non-core business units.
"I am pleased to announce the Board has approved the Group's new business plan and I am confident that we will deliver positive results for 2002."
During the year the Board appointed an independent director David Wolfenden and alternate director Paul Connell, and intends to appoint another independent director. The Board also accepted the resignation of chief executive officer and director Greg Cross earlier this year and appointed Tony Bradley as managing director early in June.
"The Board and management acknowledge this has been a challenging year and wishes to acknowledge our customers, staff and shareholders for their continued support," says Mr Bradley.