By Phil Boeyen, ShareChat Business News Editor
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Thursday 14th February 2002 |
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In the six months ended December 2001 the company had an operating profit of A$5.5 million compared with the previous year's A$7.2 million loss.
However the latest result includes A$3.4 million from the profit on the sale of the oil and gas assets, which tones down the operating surplus to A$2.1 million.
The company's bottom-line didn't fare so well with amortisation and depreciation costs of A$6.9 million pushing net profit after tax to a deficit of $2.1 million but that is still a vast improvement on the prior year's A$10.7 million loss.
Revenue for the period at A$29.7 million was lower than A$32.3 million previously but the company says the difference was partly due to seasonality issues and the loss of some regional business, which had been anticipated as a result of restructuring.
MD Jim Boult says as a result of the changes made to the company, revenue improved notably in the latter part of the half and the operating performance in the circumstances was pleasing.
"RMG's equity position has continued to strengthen and with a stronger balance sheet now backing a robust operating platform, the company is well positioned to achieve bottom line profitability."
Mr Boult says revenue per staff member increased by 17% in the period under review and shareholders funds have risen to A$66.5 million compared to A$60.9 million a year ago. Interest bearing debt has fallen to A$8.5 million from A$13.2 million at the end of June last year.
"RMG has been successful in negotiating several new collection and out-sourcing contracts with significant customers in recent months. These include associations with major participants in the insurance, local government and direct marketing sectors.
"Looking out to the end of the current financial year RMG considers that its period of reconstruction and consolidation will be complete within the current 6 months and that operational profitability will be well evident from its results at that time."
The company says the credit and receivables sector is currently enjoying buoyant trading conditions and these are expected to continue for the foreseeable future.
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