Sharechat Logo

Advantage of profit is share dip

By Nicholas Bryant

Friday 11th August 2000

Text too small?
Greg Cross
Listed eftpos company Advantage Group reported sound annual results on Wednesday but its share price got hammered by punters led to expect a major announcement.

Advantage showed it had forged ahead in its traditional market of eftpos equipment while building revenue through acquisition as an e-commerce services provider.

It reported a net profit after tax of $3 million for the year to June 30, down on the previous year's $3.4 million, but reported what it called a "normalised profit" of $6.7 million as its final result to the Stock Exchange. The normalised profit figure included $3.7 million of goodwill related to acquisitions over the past year.

Those new businesses have given Advantage a presence in the web services market, helping other companies get into e-business.

Advantage chief executive Greg Cross said other acquisitions were on the horizon, most likely in Australia.

The company believed to be next in Advantage's sights is Whitewolf, an Australian e-solutions company whose flagship creation, website MAX, is described as an enterprise-wide e-publishing solution.

Advantage also reported strong revenue growth, generating turnover of $63.9 million up from $21.2 million in the previous year. It predicts 72% growth in revenue for the year to 2001.

Although analysts said they had been delivered good news in more detail than Advantage usually provided, many had expected a significant announcement along the lines of an alliance or acquisition, especially given the Telecom-esque lockup Advantage had organised.

When there was no big announcement Advantage's shares dropped 13c to $2.93, close to where they had been a week earlier.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Deposit protection reduces case for RBNZ's bank capital increases, Robertson hints
NZ dollar higher after Lowe comments viewed as less dovish
Govt to introduce deposit insurance; RBNZ keeps prudential supervision
Granular approach needed for cost-effective emissions reduction
Bank executive incentives a key focus for regulators
Appeal Court puts ANZ back in the gun over interest rate swaps
Meridian to supply Australian online retailer
RBNZ seen keeping rates on hold but signalling more cuts to come
RBNZ demands assurance ANZ New Zealand is operating prudently
Citic gets seat at Tourism Holdings in $80 mln capital raising

IRG See IRG research reports