Cellnet forecasts A$12m loss
- 12 May, 2009 22:00
ASX-listed distributor, Cellnet (ASX:CLT), is predicting a A$11.6-$11.9 million loss for the full-year to June 30, according to new guidance documents. In a statement posted to the ASX, the company said it expected to report a loss of $1.4-$1.7 million loss for the second-half of the financial year. Cellnet chalked up a $10.2 million loss in the first half to December 31, 2008, including a $7.8 million hit from its decision to quit the PC and notebook distribution business. Cellnet chairman, Sandy Beard, attributed the second-half loss to ongoing restructuring costs and trading conditions. He anticipated the company would get back into the black in the next half. “This is with the back drop of a pretty tough environment, so we’re happy where we are at,” he told ARN. “The restructuring program continues as we envisaged – our balance sheet is in order and we will end up with a profitable business.” During the current half, Cellnet will have increased cash holdings from $10 million to $17 million. Beard says this will allow it to pursue new opportunities going forward. “As previously announced, the use of these additional cash resources has yet to be decided on by the Board and could include growing the remaining partners of the businesses either organically or through acquisition, a return of capital to shareholders or a share buy back program, acquiring a new business which may be different to Cellnet’s past and current businesses or a combination of any of these measures,” the company said in the statement. “Apart from normal trade creditors the company remains debt free.” In a recent interview with ARN, Cellnet’s newly installed managing director, Stuart Smith, indicated acquisitions were a strong way of finding new growth opportunities. He also emphasised a focus on customer service and a defined set of products were key to getting through the economic downturn. Smith was contacted for local comment by Reseller News but was unavailable.